Kuala lumpur: The Dewan Rakyat has today approved a motion to transfer the remaining RM14.5 billion in proceeds from Malaysian Government Investment Issues (MGII) issued between January and May 2026 to the Development Fund. A majority voice vote passed the motion after a debate by Datuk Seri Ismail Abd Muttalib (PN-Maran) and Datuk Zulkafperi Hanapi.

According to BERNAMA News Agency, Deputy Finance Minister Liew Chin Tong stated that the Development Fund is financed through transfers from the Consolidated Revenue Account, the Consolidated Loan Account, loan repayments, and development-related receipts. He elaborated that transfers from the Consolidated Loan Account to the Development Fund include proceeds from the issuance of Malaysian Government Securities (MGS), MGII, Treasury Bills, and external borrowings.

Liew explained that the total MGII issuance is estimated at RM95 billion. Of this, RM55 billion was allocated to refinance maturing MGII, RM2 billion to partially finance the redemption of Malaysian Islamic Treasury Bills (MITB), while RM38 billion will partially finance the 2026 fiscal deficit. He highlighted that between January and May 2026, the gross issuance of MGII was RM40 billion, with RM25.5 billion used to refinance maturing MGII, resulting in RM14.5 billion proposed for transfer to the Development Trust Account.

Liew emphasized that the government is permitted to borrow only for development expenditure, while operating expenditure must be financed through government revenue and taxes under the existing legal framework. He mentioned a proposal to transfer the remaining MGII issuances from June to December 2026 during the next parliamentary session.

Addressing Zulkafperi's concerns about the "crowding out" effect in the domestic financial market, Liew noted that the government has been reducing new borrowings over the years. He assured that the issuance of government securities and MGII provides investment opportunities for financial institutions like the Employees Provident Fund (EPF) and Retirement Fund Incorporated (KWAP), which could otherwise impact the country's currency adversely.

The Dewan Rakyat will resume its session tomorrow.