The question that many may have is HOW did Malaysia lower its Federal Government DEBT of RM100 Billion in 2022 to RM93 Billion in 2023?
Malaysia’s sovereign debt has been trending downwards in the past three years, fro, RM100 billion in 2021 and 2022 to RM93 billion in 2023. But Prime Minister Datuk Seri Anwar Ibrahim is confident his government can reduce it further to RM86 billion this year to ensure financial stability. -Malay Mail, 22/7/2024
Then, there was the report a few days before, where Anwar implied the government debt was still 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. - NST, 13/7/2024
So, what exactly is the Federal Government Debt - RM93 Billion or RM1.5 Trillion? The confusion is caused by the words allegedly uttered by Finance Minister, Anwar Ibrahim. He must really clarify once and for all HONESTLY - Malaysians deserve to know.
How much is the Federal Government DEBT - or Malaysia's SOVEREIGN Debt?
Does this include all other LIABILITIES?
Does this include Government GUARANTEES to others taking the loans?
If TRUE, Malaysia's DEBT is going down? How exactly did that happen?
Did Malaysia pay off the DEBT - and, if so, where did the money come to settle the Debt? OR, has the debt simply been transferred or taken over by another entity, so it gives the 'impression' that Anwar is a GOOD Finance Minister who has managed to reduce the Malaysian DEBT? If transfered or taken over by others, is it a government entity or GLC?
Remember, 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.' - NST, 17/1/2023
What does Anwar mean by RM1 Trillion - well, in the British system one trillion = 1,000,000 billions, whilst in the US system, 1 Trillion = 1,000 Billion. I presume Anwar maybe using the US system...
Now, in July 2024, is he finally being honest and saying that the DEBT was never RM1.2 Trillion, but really just RM100 Billion, and now it is down to RM93 Billion or maybe less today.
What is the TRUTH?
There was a JOKE about how a government can reduce POVERTY - Simple, just bring down the POVERTY line, and poverty is reduced. So, if previously the poverty line indicated that those who earned less than 1,000 are poor - then by changing it to those who earn less that RM500 are poor, the effect is the REDUCTION of poverty in the country.
So, is our national debt really reduced - or simply 'transferred' elsewhere where it no longer will be taken into account in the computation of Federal Government Debt and/or SOVEREIGN Debt? Wonder whether 'government debt' and 'sovereign debt' have different meanings.
In the 13th July report he talks about 'government's debt', whilst in the 22nd July report, he uses the term 'Malaysia's sovereign debt'...Mmmm
PM Anwar says Malaysia’s debt going down, aims to lower it to RM86b for 2024 by cutting sovereign loans
KUALA LUMPUR, July 22 — Malaysia’s sovereign debt has been trending downwards in the past three years, fro, RM100 billion in 2021 and 2022 to RM93 billion in 2023.
But Prime Minister Datuk Seri Anwar Ibrahim is confident his government can reduce it further to RM86 billion this year to ensure financial stability.
“As prime minister, I must honour prior decisions. Therefore when making choices with my colleagues, I must consider not only current circumstances but also future impacts on the administration.
“Our goal is to reduce borrowing despite existing debt. For example, the debt was RM100 billion in 2021 and 2022.
“In 2023, we reduced it to RM93 billion, and for 2024, we aim to lower it further to RM86 billion. This gradual reduction is crucial for continuing our development efforts,” he said in his speech at the National Tax Conference 2024 here today.
He said the government is taking prudent steps to ensure its spending is only used when necessary as funds for development or to settle existing debts.
He stressed the importance of plugging potential financial leakages and for taxpayers in fulfilling their obligations.
“What I want is that those who should pay, must pay. I don't care when this happens, but there must be stricter efforts. Ensure that those who are obligated to pay must pay, and there should be no leakage,” he said.
Anwar, who is also finance minister, said that subsidies are an important part of government spending that needs to be rationalised.
He added that efficient law enforcement and taxation as well as strict measures to curb corruption will help Malaysia stabilise its financial standing. - Malay Mail, 22/7/2024
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
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