PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim revealed that the government has successfully lowered annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022.
Speaking at the Prime Minister’s Department monthly assembly, he emphasised that this achievement aligns with the administration’s commitment to prudent fiscal management.
“The new debt incurred was RM99 billion in 2022, dropping to RM93 billion in 2023 and further to RM77 billion in 2024. The government promised to reduce new debt, and we have fulfilled that,” Anwar stated.
He dismissed claims that the government was increasing overall debt, clarifying that only interest payments on older debts remain unchanged.
Anwar, who also serves as Finance Minister, highlighted the gradual reduction in the fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent this year.
He explained that a measured approach ensures development projects and market confidence remain unaffected.
“We manage the national economy like a household. If income is RM5,000 but spending is RM7,000, that’s a deficit. Now, we’re reducing expenditure step by step,” he said.
The Prime Minister also commended Malaysia’s improved global competitiveness, noting an 11-place jump to 23rd in the IMD World Competitiveness Ranking 2025.
This progress, driven by economic reforms and administrative efficiency, supports the MADANI Economy Framework’s goal of placing Malaysia among the top 12 competitive economies by 2033.
Anwar cited the International Monetary Fund’s (IMF) approval of Malaysia’s fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA), as evidence of the government’s disciplined approach. – Bernama
