New Borrowings Fall to RM75.6 Billion From RM100 Billion in 2021

Prime Minister and Finance Minister Anwar Ibrahim said the MADANI government’s new borrowings go to national development, including schools, hospitals, roads, and water and electricity supply.

In the Dewan Rakyat, he said the government also had to meet inherited obligations. In 2023 alone, he said, RM13 billion was needed to settle 1MDB bonds. He added that debt is cumulative and will keep growing while the budget runs a deficit funded by borrowing.

Anwar: Debt-to-GDP Ratio at 64% in 2026, Target Is 60%

He was answering Howard Lee (DAP-Ipoh Timor), who asked about progress on lowering debt and the room to cushion the economy if the West Asia conflict worsens.

Anwar said the fiscal deficit fell to 3.7% of GDP in 2025 from 6.4% in 2021, and is projected at 3.6% in 2026, 3.3% in 2027 and 3% in 2028.

New borrowings fell to RM75.6 billion in 2025 from RM100 billion in 2021. Federal debt is 64% of GDP in 2026, projected at 63.7% in 2027, against a 60% target.

On claims that earlier debt-to-GDP was lower, Anwar said off-balance-sheet commitments, including guarantees and PPP projects, were not captured. Including them, he said, total debt and liabilities were 80.7% of GDP in June 2026, compared with 80.9% in 2022 and 80.3% in 2017.

He also cited third-quarter GDP growth of 5.3%, unemployment of 2.9% and inflation below 2%.