Malaysia won’t slip into bankruptcy, says Dr M

The prime minister says the country has plenty of savings in EPF and government agencies.

Prime Minister Dr Mahathir Mohamad says Malaysia’s experience during the 1998 financial crisis will help it to cope. (Reuters pic)

PETALING JAYA: Prime Minister Dr Mahathir Mohamad says Malaysia will not slip into bankruptcy despite the nation’s debt of RM1 trillion as there is a huge amount of savings in the Employees Provident Fund (EPF) and government agencies.

“We have large savings with the EPF, which has a lot of money, and other government agencies with large savings which can be a backup to save the economy.

“We also have a lot of experience in handling a financial crisis, like the one in 1998,” he said in Tokyo today.

Last month, Finance Minister Lim Guan Eng said official federal government debts amounted to RM686.8 billion (50.8% of gross domestic product), commitments to government guarantees stood at RM199.1 billion (14.6% of GDP) and commitments to lease payments for projects under public-private partnerships stood at RM201.4 billion (14.9% of GDP).

Putrajaya subsequently set up Tabung Harapan Rakyat that enabled the public to make donations to help reduce the country’s debts.

Mahathir also answered questions on other issues:

On the summit between US President Donald Trump and North Korean leader Kim Jong Un

We welcome the meeting. Any opportunity is far better than confrontation. It will reduce world conflict.

On Malaysia’s relationship with Beijing, despite Putrajaya reviewing several projects with China

We have to maintain good relations with China, no matter what. We cannot escape China. Our position is to always have a friendly stance with China. We want to remain trading partners with China without taking huge loans.

On becoming the prime minister at 92

I am still not senile and I can answer questions. And since people want me to rule again, I will do so.

On his admiration for Japan

I realise that it is their value system that made them so successful. You do not want to feel shame from failure, hence you force yourself to be competitive with the rest of the world and rebuild your country. - FMT