Deputy minister: At RM596b, Malaysia’s debt levels still ‘moderate’

(Malay Mail Online) – The national debt as at end-March stood at RM596 million or 52.1 per cent of the Gross Domestic Product (GDP), which is still “moderate”, a deputy finance minister told the Dewan Rakyat today.

“For your information, the total debt as of March 2015 would be RM596.8 million… with RM579 million from domestic, and the rest from offshore loans,” Datuk Chua Tee Yong said during Question Time this morning.

He was asked to state the country’s external debt levels as of April this year.

“Our country is still categorised as country with moderate debt,” he added.

As at end-December 2014, national debt was at RM582.8 billion or 54.5 per cent of the GDP, of which RM566.1 billion (97.1 per cent) was domestic debt while the remaining  RM16.8 billion (2.9 per cent) was in offshore loans.

Putrajaya is under pressure over the stalling economy caused by sharp declines in oil prices since last year, and the controversy surrounding 1 Malaysia Development Bhd (1MDB), the state-owned investment firm that has amassed a massive RM42 billion debt pile since its inception in 2009.

The financial woes of 1MDB has also prompted demands for a leadership change in Putrajaya, with calls for Prime Minister Datuk Seri Najib Razak to step down.

On top of that, consumer spending has also slowed sharply since March, following the introduction of the Goods and Services Tax on April 1.