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Govt debt level not critical: Najib

  • Najib says debt is at 50.9% of GDP, lower than the 55% set by govt and far better than developed countries like Singapore (112%), UK (89.3%) and Canada (92.3%). Photo courtesy: Bernama

KUALA LUMPUR, Jan 5 (Bernama) -- Prime Minister Datuk Seri Najib Razak has reiterated that the Federal government's debt was not at a critical level as rumored by certain quarters.

Via his blog, the Prime Minister said as of June 2017, the debt was recorded at 50.9 per cent of the country's gross domestic product (GDP), which is lower than the 55 per cent level set by the government.

"This proves that the government debt was still manageable, and also lower than the 53.2 per cent as of end-June 2016. This is something that we should be proud of.

"At the same time, the ratio of government debt to Malaysia's GDP is very much better in contrast to other developed countries such as Singapore at 112 per cent, the United Kingdom (89.3 per cent) and Canada (92.3 per cent)," he added.

Najib also refuted allegations that the government was going to be bankrupt based on the Federal government debt, when international economic bodies such as the World Bank had increased the growth projection for the 2017 GDP from 4.9 per cent to 5.2 per cent.

He said it did not make sense to say Malaysia was going bankrupt when many countries had shown interest in investing in the country and were looking at forming trade partnerships.

"Although the opposition is making slanderous allegations that Malaysia's economy is about to crash just to gain power, the government is always seeking avenues to strengthen and place it on par with those of other major economic powers globally," he added.

 

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