Gov't debt recorded at RM685.1b, says MOF

The Finance Ministry (MOF) said the government's debt stood at RM685.1 billion or 50.9 percent of the GDP, as of June 2017.

"The national debt remains well managed and our debt level is still moderate," the ministry said in a parliamentary reply to Teresa Kok (DAP-Seputeh).

A total of RM662.4. billion or 96.7 percent of the amount is domestic debt while the balance of RM22.7. billion is offshore loans.

"The government is committed to ensuring the debt would not exceed 55 percent of the GDP. To maintain low and manageable debt, fiscal consolidation is adopted to reduce the deficit by stages," added MOF.

"This will reduce the government's need to borrow and lead to the reduction of debt," it said, adding that RMM496.2 billion worth of bonds are held by local investors.

They are Bank Negara Malaysia (BNM) and banking institutions (29.7 percent out of RM496.2 billion), Employees Provident Fund (27.2 percent), insurance companies (4.5 percent), and Retirement Fund Inc (3.5 percent), among others, according to MOF.

“The balance of RM188.8 billion or 27.6 percent, is held by non-residents like fund managers or central bank assets (10 percent), supranational and government (8.5 percent), retirement funds (4.8 percent) and banking institutions (2.3 percent)," added MOF.

It was reported that the national debt increased from RM306.4 billion in 2008 to RM655.7 billion by the end of 2016. - Mkini