THE government expects to issue RM14.2 billion worth of gross direct debt and redeem RM21.6 billion of it over the last two months of the year, Finance Minister Lim Guan Eng, 

The net direct debt issuance for the period is thus -RM7.4 billion, Lim said in a statement today..

He pointed out the government’s financial plan was proceeding as planned, as demonstrated by the issuance and redemption of the direct debt.

The latest full-year plan estimates that the government will raise RM135 billion worth of gross direct debt, and redeem RM83 billion, and as a result, raise the estimates for net direct debt in 2019 to RM52 billion.

“The government has no intention to change its direct debt issuance and redemption plan for the rest of the year. Hence, the government is confident of meeting its 2019 fiscal deficit target of RM52 billion or 3.4% of gross domestic product (GDP), which is lower than the 2018 fiscal deficit of RM53.4 billion or 3.7% of GDP,” he said.

The confidence is shared by the top three credit rating agencies, which have affirmed Malaysia’s sovereign credit rating at a high A- or A3 with a stable outlook since the Pakatan Harapan government took over in 2018.

Meanwhile, for the January-October period, the government has raised RM121 billion worth of gross direct debt, comprising RM51.5 billion via Malaysian Government Securities; Malaysian Government Investment Issues (RM50.5 billion); Treasury bills (RM11.5 billion); and RM7.5 billion worth of other instruments including samurai bonds.

At the same time, RM61.7 billion worth of direct debt has been redeemed during the same period and specifically for the month of October, the government has issued RM10.0 billion worth of direct debt.

“The government has also redeemed RM11.8 billion worth of direct debt. Thus, the net direct debt issued in October 2019 was -RM1.8 billion. Those claiming otherwise show that they are either serial liars, ignorant or unable to read financial data accurately,” said Lim. – Bernama, November 2, 2019.