National Debt to Decline If Malaysia Succeeds In Cutting Fiscal Deficit To 3.5 Per Cent -- Minister Rafizi

KOTA KINABALU (Sabah, Malaysia), June 28 (Bernama) -- Success in lowering the fiscal deficit to the targeted 3.5 per cent of gross domestic product by the end-2025 will signal that the national debt will decrease in the years that follow, said Malaysia’s Economy Minister Rafizi Ramli.

He said if the level can be reduced as per target, it would assure foreign investors that the government has good fiscal discipline.

“With the national debt at US$321.38 billion (RM1.5 trillion, US$1 = RM4.66), missing the fiscal deficit target would not help in reducing the national debt or improving the country’s fiscal position.

“(But) if we continue to achieve the deficit target by 2025, we will start to see the debt falling,” he said in his speech at the 12th Malaysia Plan mid-term review engagement session with the east Malaysian state Sabah government here Tuesday.

Rafizi said the Federal Government’s priority on strengthening the fiscal position is not just aimed at reducing debt but also reassuring international investors that the present government is disciplined and spends prudently.

-- BERNAMA