KUALA LUMPUR – Prime Minister Datuk Seri Najib Tun Razak has reiterated that a claim that the country is going bankrupt is baseless.
“The highest debt level was recorded in 1986 when the national debt ratio then was 103.4 per cent of the country’s GDP (Gross Domestic Product). Today, our debt to GDP ratio is just 50.8 per cent.
“This means that as a government we have been prudent and responsible,” Najib, who is also Finance Minister, said during a dialogue in conjunction with the National Transformation Programme (NTP) Annual Report 2017 Review here tonight.
The dialogue was facilitated by Datuk Seri Idris Jala, the Adviser to the Prime Minister for the NTP.
“If we were to look at the debt ratio of other countries, for examples, Japan is 240 per cent of GDP, Singapore 111 per cent and the United Kingdom 89 per cent
“Logically, these countries should go bankrupt first, instead of Malaysia. Not us. Hence, a claim that Malaysia will go bankruptcy is utterly baseless,” he said.
Besides, Malaysian economy’s bright prospects had been validated by global institutions, and major credit ratings agencies had reaffirmed Malaysia’s rating within the “A” band with a stable outlook.
Malaysia is one of the few countries in the world to put a statutory limit on government debt, further demonstrating the government’s tenacity and discipline to institutionalise reforms.
The government’s debt of 50.8 per cent of GDP in 2017, safely below the self-imposed debt ceiling of 55 per cent of GDP. – BERNAMA