KUALA LUMPUR: Malaysia’s national debt has reached RM1.5 trillion (US$350 billion) and immediate action must be taken to address the issue, Prime Minister Anwar Ibrahim said on Tuesday (Jan 17).

He said the figure, which includes liabilities, has already exceeded 80 per cent of the gross domestic product (GDP) and that this has a direct impact on the economy.

He was quoted as saying by the New Straits Times that the figure also suggests that the country’s budget deficit will widen further than the earlier estimate of 5.8 per cent of the GDP for 2022.

“The problem with our debt is it has already touched RM1.2 trillion and if liabilities are included, the debt is RM1.5 trillion,” said Mr Anwar at the 2023 Budget Dialogue at the finance ministry.

In 2018, then-prime minister Mahathir Mohamad revealed that the country was saddled with more than RM1 trillion in debt following the opposition coalition's win in the 2018 General Election. Dr Mahathir then blamed the previous government led by former protege Najib Razak on the issue.

And just last year, former finance minister Tengku Zafrul Abdul Aziz said that the country’s debt stood at RM1.045 trillion at the end of June 2022. This corresponds with 63.8 per cent of Malaysia’s GDP then.

Mr Anwar was quoted as saying by national news agency Bernama on Tuesday that the economy is still “considered weak”.

“It is also related to international developments, both in terms of the Russia-Ukraine conflict and post-COVID-19, and has yet to show economic strength,” he said.

The finance minister was quoted as saying by the New Straits Times that Malaysians cannot afford to be complacent and living “with a culture of contentment as if there is no problem”.

NO PLANS FOR LEGACY SKYSCRAPERS

During the Tuesday dialogue, Mr Anwar also said there are no plans for landmark skyscrapers to be built in the country as a legacy to mark his administration.

“I feel that there are enough landmarks in Kuala Lumpur like the (Petronas) Twin Towers and TRX (Tun Razak Exchange).

“Under the Anwar administration, I have no wish to add to these landmarks and I am not planning to compete with them,” he was quoted as saying by the Malay Mail at the dialogue session.

Instead, Mr Anwar said he plans to create policies that will help small and medium-sized enterprises weather the challenging economic environment.

He said: “My only focus is on ensuring our policies are sound, the people’s needs are taken care of … By doing these things and more, we can bring back investors’ confidence in Malaysia.”

According to the Malay Mail, the dialogue on Tuesday was to discuss the government Budget that was tabled by the previous administration in October last year.

That budget, however, was not debated due to the dissolution of Parliament that led to the General Election on Nov 19 last year.

Mr Anwar’s unity government is scheduled to table its first national budget to Parliament on Feb 24.