PRIME Minister and Finance Minister Datuk Seri Anwar Ibrahim must stop using selective framing and misrepresenting concepts to downplay the seriousness of the national debt situation or to claim undue credit.
The public deserves transparency, particularly in the face of rising inflation, a soaring cost of living and growing economic hardship.
What is urgently needed are concrete, revenue-generating economic policies, not a continued dependence on tax increases and subsidy reductions that place additional financial pressure on the rakyat.
Recently, PMX stated that Malaysia’s new borrowings have decreased annually from RM100 bil in 2022 to RM80 bil in 2024.
He also claimed that consistent efforts have been made since 2022 to reduce the fiscal deficit from 5.5% to a projected 3.8% this year. However, such narrative attempts to obscure the actual increase in overall national debt by focusing only on the decline in new borrowing.
Borrowing drops bit debt level surges
The claim of a RM20 bil drop in new debt over three years does not reflect the full picture. According to the latest fiscal and debt data released by Bank Negara Malaysia (BNM), the national debt continues to rise.
Official reports such as the Government Finance Statistics and the Economic Outlook Report show that federal government debt exceeded RM1.17 tril as of end-2023.
This figure rose to RM1.63 tril in 2024 and remained high at RM1.25 tril as of 1Q 2025. These numbers directly contradict PMX’s claims and reveal a clear attempt to present a misleading version of the national debt status by selectively using statistics.
National debt cannot be assessed by focusing solely on new borrowings. The total size of the debt, the debt-to-GDP ratio, re-financing obligations and interest liabilities are all key structural factors that must be addressed.
Suggesting that borrowing slightly less this year indicates meaningful fiscal improvement underestimates the public’s understanding and concern.
Self-deception
What matters most to the people is the actual debt burden carried by the country – not how the government chooses to interpret the data.
If the debt continues to grow and interest payments increase, then PMX’s remarks amount to self-deception and risk eroding public trust.
Perdana Menteri Anwar Ibrahim berkata kerajaan berjaya mengurangkan jumlah hutang negara sebanyak RM20 bilion sejak mengambil alih pentadbiran pada tahun 2022.
Beliau yang juga menteri kewangan berkata bermula dengan hutang berjumlah RM100 bilion, kerajaan kini menyasarkan… pic.twitter.com/h7o7AE7zzx
— Malaysiakini (BM) (@mkini_bm) June 20, 2025
Editor’s Note: Kindly read comments by man-on-the-street Malaysians to the Malaysiakini post.
Despite repeated assurances of fiscal reform and financial discipline, the Madani government has yet to demonstrate genuine progress in reducing national debt or budget deficits over the past two years.
Instead, it has expanded the Sales and Services Tax (SST) and reduced subsidies, effectively shifting the fiscal burden onto the public while failing to rein in government expenditure.
Balancing the national budget should not come at the expense of ordinary Malaysians.
The real crisis today lies in inflation and the rising cost of living. Yet the government has failed to introduce any substantial, revenue-boosting economic policy or reform plan.
What the country truly needs are forward-looking policies that raise incomes, encourage investment and create employment opportunities.
Fiscal reforms must not be used as an excuse to add to the public’s burden. Malaysians do not need more political packaging. What is urgently required are real, effective solutions that provide relief and restore confidence. – June 22, 2025
A PhD holder in theoretical economics from the Perking University and a business development actuary, Saw Yee Fung is the MCA Youth secretary general.
The views expressed are solely of the authors and do not necessarily reflect those of Focus Malaysia.
