Guan Eng demands economic reform as 1MDB debt spirals

DAP chairman Lim Guan Eng says the plummeting value of the ringgit against the US dollar means Malaysia is paying RM500 million extra in annual interest payments alone. – Facebook pic, September 17, 2022.

DAP chairman Lim Guan Eng has urged the government to adopt structural economic reforms immediately to arrest the ringgit’s rapid descent, warning “there will be adverse repercussions” particularly on government debt held in US dollars.

As the ringgit dropped to a 24-year low of RM4.54 against the US dollar yesterday, the former finance minister said, at the current exchange rate, the government now owes an extra RM7.7 billion on the principal sum due to the three tranches of bonds that Goldman Sachs had arranged for 1Malaysia Development Bhd (1MDB), or RM29.5 billion in total.

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