Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim announced that the government has successfully reduced the annual new debt to RM77 billion in 2024 from RM99 billion in 2022. This achievement aligns with the government’s commitment to more prudent fiscal management, with only the interest payments on existing debts remaining unchanged.

According to BERNAMA News Agency, Anwar emphasized that the reduction in new debt from RM99 billion in 2022 to RM93 billion in 2023, and further to RM77 billion in 2024, demonstrates the government’s promise to decrease new borrowing. He addressed concerns about the overall debt, which includes old debt and interest payments, by asserting that the government has honored its commitment to reduce new debt.

Anwar, who also serves as the Finance Minister, highlighted that the successful reduction of annual new debt was in accordance with the decrease in the fiscal deficit. He assured that the government would continue to reduce the fiscal deficit responsibly and gradually, without compromising national development. The fiscal deficit was reduced from 5.5 percent in 2022 to 4.1 percent in 2024, with a target of 3.8 percent for the upcoming year.

The Prime Minister explained that the government adopted a gradual approach to ensure that deficit reduction would not hinder development needs and market confidence. He likened the national economic management to household budgeting, emphasizing the importance of balancing income and expenditure.

Anwar also commended the civil service team for their efforts, which contributed to Malaysia’s significant improvement in the IMD World Competitiveness Ranking 2025, moving up 11 places to 23rd position. This progress reflects the country’s ongoing economic recovery and reform agenda.

In June, the Ministry of Investment, Trade and Industry (MITI) reported Malaysia’s rise in the World Competitiveness Ranking, marking the best performance since 2020. This advancement is part of the MADANI Economy Framework’s objective for Malaysia to become one of the 12 most competitive economies by 2033.

Anwar further noted that the International Monetary Fund, in its Article IV consultation for 2025, commended Malaysia’s fiscal reforms, including the Public Finance and Fiscal Responsibility Act. This act involves the Finance Minister delegating some powers to parliament to evaluate fiscal targets, underscoring the government’s commitment to transparency and accountability.