Malaysia's high interest on debts sparks budget crisis fears, says report


Going by an annual growth rate of 10.7%, Malaysia's debt could reach RM1 trillion by 2021 on excessive spending. – The Malaysian Insight file pic by Seth Akmal, February 17, 2018.

HIGH interest payments, low government revenue and off-the-books bailouts of state firms have sparked concerns of a looming budget crisis in Malaysia, despite Prime Minister Najib’s Razak’s assurance that the country’s total borrowings was well under control, said Singapore’s Straits Times.

Last month, Najib said Malaysia’s total debt of RM685.1 billion last year compared favourably against other countries, because they formed only 50.9% of the country’s economy, or gross domestic product (GDP).

“Malaysia is better than developed countries such as Singapore at 112%, United Kingdom at 89.3%, Canada at 92.3%,” Najib had been quoted as saying.


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    Posted 6 years ago by Bigjoe Lam