PUTRAJAYA, October 19 2026, The government will continue to manage national borrowing responsibly, ensuring new loans are based on economic needs and the country’s ability to repay, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar said responsible debt management was essential to prevent excessive financial burdens from being passed on to future generations.
He added that Malaysia’s debt-to-GDP ratio was projected to decline from 64 per cent in 2026 to 63.7 per cent in 2027, reflecting the government’s commitment to long-term fiscal sustainability.
Speaking at the Finance Ministry’s monthly assembly here today, Anwar acknowledged concerns over the rising national debt, explaining that the government must continue servicing existing obligations while borrowing only when necessary.
He also rejected claims that all debts linked to 1Malaysia Development Berhad (1MDB) had been fully settled, stressing that outstanding obligations, including interest, still needed to be paid.
Anwar, who is also Finance Minister, said fiscal management had become more challenging amid rising global crude oil prices, which had increased from a projected US$70 per barrel to between US$110 and US$120.
He said the government must also fund measures to ease the public’s cost-of-living burden, including an additional RM40 billion in annual fuel subsidy costs, higher cash assistance and civil service salary increases.
He stressed that spending discipline, efforts to curb leakages and stronger governance were crucial to meeting these commitments without undermining the country’s fiscal position.
-AWANI
