THE government has managed to trim its federal debt following a GDP growth and recovery of funds from abroad, said Dr Mahathir Mohamad.

Speaking to reporters in Parliament lobby today, the prime minister said the total debt has been “reduced considerably”, but is unable to give the exact numbers.

“Well, it has come down. The minister of finance will know the exact figure.

“When the economy grew in the last one year, a percentage of debt that is owed became lesser.

“Secondly, we had been able to recover quite a lot of money that was lost, that was kept by Singapore. So that helps to reduce debt.”

Last September, Singapore ordered some RM46 million, the first tranche, pilfered from the 1Malaysia Development Bhd (1MDB) to be returned to Malaysia. 

Earlier during Dewan Rakyat question time, Dr Mahathir responded to Ahmad Maslan’s (Pontian-BN) on the status of the national debt.

Dr Mahathir told reporters that the government is also working hard to reduce the contract value of the East Coast Rail Link “because if we don’t continue with the project, we will have to pay a very huge compensation”.

The Edge reported that the rail project is estimated to cost RM81 billion.

“So, at the moment the process is ongoing, it’s not static. It (debt) is being lowered, being worked on all the time.” – April 4, 2019