Malaysia’s Federal Debt Rises to RM1.3 Trillion While Government Pledges Fiscal Reforms

KUALA LUMPUR: Deputy Finance Minister Lim Hui Ying revealed that Malaysia’s federal government debt rose to RM1.3 trillion as of March 2025, up from RM1.25 trillion in December 2024, due to borrowing to support development expenditure. Total liabilities stood at RM384.6 billion. Lim assured that borrowings are used prudently for strategic projects in infrastructure, healthcare, education, and social protection. The government is implementing fiscal reforms, including subsidy rationalisation, broadening revenue sources, and setting a 25% ceiling on financial guarantees under the Fiscal Responsibility Act 2023. Institutional reforms, procurement law updates, and GLC reforms are also planned to strengthen governance and reduce borrowing.

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