What exactly is Malaysia's Federal Government DEBT?
Based on Media Reports - it seems that Malaysian Federal Government Debt has been increasing since Anwar became Finance Minister and Prime Minister.
The recent statement in JULY 2024 - indicates that Anwar has FAILED to reduce Federal Debt, and maybe it has increased from the RM1.2 Trillion in January 2023 to now RM1.5 Trillion. (in the July media report, there is NO INDICATION that the RM1.5 Trillion, includes other liabilities.)
The prime minister said, he and the Public Service Department (PSD) would continue to find ways to ensure that this is realised, despite the government's debt reaching RM1.5 trillion.
Anwar, as FINANCE MINISTER, the people expect you to be VERY HONEST and speak clearly so that the people can KNOW and understand the financial state of the nation > as this has SERIOUS impact to all Malaysians, now and in the future...
In October 2022, the previous Prime Minister said
Total government debt and liabilities as of June 2022 is estimated to be at RM1.42 trillion and will rise further next year as Prime Minister Datuk Seri Ismail Sabri Yaakob’s administration tabled a deficit Budget 2023, the biggest federal spending plan to date. - Malay Mail, 7/10/2022
Then, in January 2023, Anwar said that the DEBT was RM1.5 Trillion, i.e. RM1.2 Trillion debt, and if plus liabilities, it is RM1.5 trillion.
In January 2023, Anwar said '"The problem with our debt is it has already touched RM1.2 trillion and if includes liabilities, it is RM1.5 trillion.' - hence, debt was RM1.2 Trillion. If we plus other liabilities(?) it is RM1.5 trillion."We have to accept this reality. We cannot feel complacent, living with the culture of contentment as if there is no problem," Anwar said during the 2023 Budget dialogue here today. - NST, 17/1/2023
Then, recently in July 2024, Anwar implies government debt reaching RM1.5 trillion
The prime minister said, he and the Public Service Department (PSD) would continue to find ways to ensure that this is realised, despite the government's debt reaching RM1.5 trillion."Some said Anwar is not being practical and only wants to be popular, saying that we have no money, but want to increase pay. Others say it is not likely to happen. - NST, 13/7/2024
WHAT IS THE TRUTH? WHAT IS THE MALAYSIAN FEDERAL GOVERNMENT DEBT? The additional 'liabilities' must also be explained? Some say, these are Federal Government GUARANTEES when others borrowed monies - details, please Mr Finance Minister Anwar Ibrahim.
a) So, Anwar, since January 2023, have you FAILED to reduce the Federal Government Debt? Has the DEBT increased? If so, should you not RESIGN - and get in a more competent Finance Minister?
b) What is the amount of the Federal Government DEBT, and what is amount of the Federal Government Debt(Plus Liabilities)?
c) Does the 'Liabilities' include government guarantees for the loan taken by other entities like 1MDB, etc? If NOT, what is amount of government guarantees for loans taken by others - and please inform the people who did the government stand as 'guarantors' and for what amounts?
Government guarantees are conventionally excluded from the federal debt and liability balance sheet but there is increasing call by opposition lawmakers to include it into the national fiscal management debate after the 1Malaysia Development Berhad corruption exposed taxpayers to the fund’s massive debt.
Over RM50 billion had been leaked or embezzled through the sovereign fund founded by disgraced former prime minister Datuk Seri Najib Razak, now facing trial for multiple corruption and power abuse charges for his alleged role in the fiasco...Up to June this year[2022], the Ministry of Finance said RM19 billion of the stolen monies have been recouped and deposited into a special account set up to clear 1MDB’s debt. The Malaysian government is still exposed to RM25.9 billion of the fund’s debt up to June this year, or 1.5 per cent of total debt-to-GDP. Meanwhile liabilities from private-public partnership projects, private-financing initiatives and programmes spearheaded by public infrastructure company PBLT Sdn Bhd dropped to RM149 billion from RM151 billion last year.
d) Now, Malaysia is in a VERY PRECARIOUS financial position, for besides the Federal Government Debt(Plus Liabilities) plus government guarantees, ordinary Malaysians have also personal debts, whereby the HOUSEHOLD Debts was reported to be about RM1.53 Trillion in 2023, and this is VERY HIGH for a country with a population of about 30 million only...
The aggregate debt for households in 2023 has amounted to RM1.53 trillion, the Dewan Rakyat was told.Finance Ministry in a parliamentary written reply on Monday (March 18) said of the total, the largest portion of the debt was housing loans which comprised 60.5 per cent of the debt, followed by vehicle loans (13.2 per cent) and personal financing (12.6 per cent).
It added that other loans for other purposes include non-residential property purchases, credit card debt, securities and others.
In aggregate, the total household debt for 2022 was RM1.45 trillion, followed by 2021 (RM1.38 trillion), 2020 (RM1.32 trillion), 2019 (RM1.25 trillion), and 2018 (RM1.19 trillion), said the ministry.
e) Besides Federal Government DEBTS and Liabilities, Household DEBTS, there is state State Government Debts(and liabilities), and also Local Government DEBTS(and liabilities) - Malaysians deserve to know details of these debts(and liabilities) too. Are the PN governed States in a better position than the PH-BN governed States?
In the past, whenever the salaries of civil servants go hope - the price of goods and the cost of living also rises, does Anwar not realize this? So, expect a large jump in the cost of living at the end of the year...
When Malaysia's financial situation worsens, our Ringgit value also drops - and the cost of goods and cost of living rises too.. When this happens, it derails our preparedness for old age survival - what we kept aside is no longer enough to sustain the cost of living until death... KWSP told us before that RM250,000 in our account was sufficient to cover our livelihood until death- I believe that may not be enough anymore...
Fuel Subsidies are disappearing - but still no plans to put in place affordable public transport - In the past, there were regular busses in every towns, but today only bus-stops remain, but no busses. In most towns, new housing estates have emerged - and so, distances between town centre, hospitals, etc increased to 10-15 Km, and there is no bus services - and GRAB is simply too expensive(and seriously lacking in smaller towns). Public Transport within towns and local government areas are generally not-profitable if one wants to keep cost affordable for the masses - so, it is best managed by the government, be it the Federal Government, State government or local government. But, Anwar's government still not dealing with this yet...focus still remains in Klang Valley, Penang and the west Coast of Peninsular Malaysia -
Government needs to 'tighten its belt' and overcome the debt-problem - so, please end policy of using monies to generate/maintain political support - which, by the way really does not work in 2024, as it may have in the 80s and 90s. People are smarter with their choices at the ballot box.
So, ANWAR forget about the next GE, and focus on improving the economic or financial state of the nation >>> REDUCE our DEBT(and other liabilities) now, so it does not burden future generations of Malaysians.
"We don't even have (huge) reserves any more. Oil-producing countries have huge reserves, we don't."
He said if Malaysia's RM1.5 trillion debt and continually widening federal budget deficit were not remedied, the economy would inevitably collapse and cause immense suffering to future generations.
Govt to fulfil salary hike pledge despite RM1.5 trillion debt
BANGI: The government's commitment to raise civil servants' salaries starting this December will still be fulfilled, said Datuk Seri Anwar Ibrahim.
The prime minister said, he and the Public Service Department (PSD) would continue to find ways to ensure that this is realised, despite the government's debt reaching RM1.5 trillion.
"Some said Anwar is not being practical and only wants to be popular, saying that we have no money, but want to increase pay. Others say it is not likely to happen.
"But the PSD is working hard to find ways to make it a reality.
"I don't want anyone to be left behind," he said at the National Union of Teaching Profession's (NUTP) golden jubilee celebration here, today.
Anwar said teachers have waited too long for a raise, but said it was not their fault that the country had debts."It is not the teachers who built houses in London, or Australia. It is not teachers who have caused the country to have huge debts.
"So why should they sacrifice?" he said.
Also present were Selangor Menteri Besar Datuk Seri Amirudin Shari, Education Minister Fadhlina Sidek, PSD director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz and NUTP president Aminuddin Awang.
On Labour Day, Anwar announced a more than 13 per cent increase in civil servants' remuneration, among the highest in Malaysia's history.
The salary increase, effective Dec 1, marked one of the highest in Malaysia's history, with the last revision occurring 12 years ago. - NST, 13/7/2024
Malaysia's national debt now at RM1.5 trillion, or over 80pct of GDP
PUTRAJAYA: Malaysia's national debt including liabilities has reached RM1.5 trillion and should be addressed urgently, Prime Minister Datuk Seri Anwar Ibrahim said.
This was already more than 80 per cent of the country's gross domestic product (GDP).
The figure also suggests that Malaysia's budget deficit will widen further than the earlier estimate of 5.8 per cent of the GDP for 2022.
"The economic uncertainties are still not easing. The economy is still considered dim and this was also contributed externally including the Ukraine-Russia conflict as well as global recovery post-Covid.
"The problem with our debt is it has already touched RM1.2 trillion and if includes liabilities, it is RM1.5 trillion.
"We have to accept this reality. We cannot feel complacent, living with the culture of contentment as if there is no problem," Anwar said during the 2023 Budget dialogue here today.
Also present were deputy Finance Ministers Datuk Seri Ahmad Maslan and Steven Sim Chee Keong, as well as deputy secretary general of treasury Datuk Johan Mahmood Merican.
The new 2023 Budget is expected to be tabled in the Parliament on Feb 24.
The original 2023 was presented on Oct 7 by the then finance minister Tengku Zafrul Abdul Aziz with a total allocation of RM372.3 billion but was not approved due to the dissolution of Parliament three days later to make way for the 15th general election (GE15).
Anwar was reported to have said that the government will look at the proposals in the budget tabled by the previous government and make the necessary changes before tabling his government's budget.
Meanwhile, Anwar said it had taken him only two months in the office to recognise that the government would be able to save around RM10 billion from leakages from its procurement system.
Hence, he said the mandate of the unity government remained -
to change the orientation of the system in order to ensure that the
vast majority of citizens benefit from economic initiatives and reforms. - NST, 17/1/2023
Budget 2023: Malaysia’s debt, liabilities estimated at RM1.42t up to June
KUALA LUMPUR, Oct 7 ― Total government debt and liabilities as of June 2022 is estimated to be at RM1.42 trillion and will rise further next year as Prime Minister Datuk Seri Ismail Sabri Yaakob’s administration tabled a deficit Budget 2023, the biggest federal spending plan to date.
Federal government debt accounts for 61 per cent of debt-to-GDP, at RM1.04 trillion up from RM979.8 billion in 2021. Total debt and liabilities are about 82 per cent of GDP.
Guarantee commitments up to the same period rose to RM199 billion from RM197.3 billion in 2021. Total loans guaranteed by the government up to June 2022 stood at RM307 billion or 17.9 per cent of GDP, down from RM310.4 billion last year.
Government guarantees are conventionally excluded from the federal debt and liability balance sheet but there is increasing call by opposition lawmakers to include it into the national fiscal management debate after the 1Malaysia Development Berhad corruption exposed taxpayers to the fund’s massive debt.
Over RM50 billion had been leaked or embezzled through the sovereign fund founded by disgraced former prime minister Datuk Seri Najib Razak, now facing trial for multiple corruption and power abuse charges for his alleged role in the fiasco.
He has already been convicted of criminal breach of trust and embezzling RM42 million from SRC International, a former 1MDB subsidiary.
Up to June this year, the Ministry of Finance said RM19 billion of the stolen monies have been recouped and deposited into a special account set up to clear 1MDB’s debt.
The Malaysian government is still exposed to RM25.9 billion of the fund’s debt up to June this year, or 1.5 per cent of total debt-to-GDP.
Meanwhile
liabilities from private-public partnership projects, private-financing
initiatives and programmes spearheaded by public infrastructure company
PBLT Sdn Bhd dropped to RM149 billion from RM151 billion last year. - Malay Mail, 7/10/2022
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