KAJANG — Prime Minister Datuk Seri Anwar Ibrahim has refuted claims that national debt is spiraling out of control, clarifying that annual deficit growth is slowing down even as the total debt stock expands due to high interest payments on inherited liabilities.
Addressing the Universiti Islam Selangor community on Monday, Anwar stressed that Putrajaya is forced to spend RM980 million annually just to service interest costs tied to past governance failures, including the 1Malaysia Development Bhd (1MDB) scandal.
“People say the debt is increasing. No, it is now decreasing. But the total amount of debt has increased because interest rates are high,” Anwar said during the meet-and-greet session. “What are we paying interest for? We are paying for old debts. We are paying for 1MDB’s debt. How can we deny this?”
Anwar, who is also the Finance Minister, pointed to past decisions at state-linked institutions as major drivers of the current financial strain. He noted that while the Federal Land Development Authority (Felda) was historically led by capable administrators like Tan Sri Raja Muhammad Alias Raja Muhammad Ali and Tan Sri Taib Andak, subsequent corporate missteps—such as the creation of Felda Global Ventures Holdings Bhd (FGV)—resulted in heavy losses that Putrajaya must now resolve alongside Tabung Haji liabilities.
Framing the fiscal damage as a failure of governance rather than a demographic issue, Anwar maintained that national recovery depends on combating corruption rather than faulting specific communities.
“Our problem is not Chinese, Indian or Malay,” Anwar said. “The problem is one of integrity, corruption, and failing to uphold values.”
