The growing national debt figure was a result of Putrajaya's transparency and commitment to reveal the true extent of Malaysia's debt, said Finance Minister Lim Guan Eng (photo, above).
Responding to a question on the RM58 billion in bonds issued by the government so far this year, Lim said this was necessary to meet commitments made by the previous administration.
"Any increase in debt is due to existing commitments and expenditure. I know there is a lot of expenditure from the previous government. We are continuing (to pay for) them.
"Until the three-year roadmap is completed, we have to fulfil this commitment. At the same time, we hope to carry out infrastructure development projects that will be beneficial to the country in the long run.
"Our three-year roadmap will put Malaysia back on track," he told reporters in Kuala Lumpur.
According to Bank Negara, the government's current liabilities at the end of quarter two (Q2) increased by RM58 billion since end-Q4.
Available data suggested that most of these bonds were ringgit-denominated.
Lim said although the debt is mounting, international credit rating agencies continue to maintain favourable ratings for the country.
"Economic data shows that not only have we exceeded market expectations, but foreign investments also continue to come in," he said.
Malaysia's Q2 GDP growth had beaten forecasts, mostly driven by consumer spending and foreign investments. - Mkini
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