Under PMX Anwar, Malaysia’s debt ceiling hits 65.5% or 0.5% above the statutory national debt ceiling

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 Is there anything wrong with the Finance Ministry’s financial management? Why is the national debt ceiling above the statutory limit? For image info, go to https://themalaysianreserve.com/2024/10/18/pm-anwar-to-table-budget-2025-this-afternoon/ 

Under PMX Anwar, Malaysia’s debt ceiling hits 65.5% or 0.5% above the statutory national debt ceiling

KUALA LUMPUR, May 18, 2025: Malaysia’s national debt ceiling has hit its highest ever in financial history under Prime Minister Anwar Ibrahim.

Into his third year in office, Anwar who is also Finance Minister, Malaysia’s debt-to-Gross Domestic Product (GDP) has surpassed the statutory 65% debt ceiling at 65.5%.

According to Bank Negara Malaysia (Central Bank), the country’s direct debt has increased to RM1.277 trillion as of the end of the first quarter this year.

No News Is Bad News reproduces below an article being shared on WhatsApp:

According to data released by Bank Negara Malaysia (BNM) yesterday, the country’s direct debt has increased to RM1.277 trillion as of the end of the first quarter of 2025.

This also means the debt-to-GDP ratio has now reached 65.5%, thus surpassing the statutory debt ceiling of 65%.

Debt-to-GDP ratio:

Q4 2015 (Najib): 53.6%

Q4 2016 (Najib): 51.9%

Q4 2017 (Najib): 50.0%

Q1 2018 (Najib): 48.7%

Q4 2022 (PN): 60.3%

Q4 2023 (Madani): 64.3%

Q4 2024 (Madani): 64.6%

Q1 2025 (Madani): 65.5%

Taking into account new borrowings of RM19 billion made throughout April and May so far, Malaysia’s direct debt has now increased to RM1.296 trillion and is expected to hit RM1.3 trillion for the first time within the next week or two.

For comparison:

In 2017 during Najib’s era, direct debt was only RM686.8 billion

By the end of 2022 under the Perikatan Nasional (PN) government, it stood at around RM1.0796 trillion

It’s quite ironic that the very groups who used to loudly accuse the country of heading towards bankruptcy under Najib are now the ones increasing the national debt at double the pace—reaching even more alarming levels.

Back then, they made a fuss claiming RM686 billion was dangerous. Now that it’s nearing RM1.3 trillion, they’ve fallen silent as if nothing is happening.

This data paints a very clear and concerning picture: Malaysia’s national debt is increasing at a much faster rate now compared to previous administrations. Here are some key observations:

1. Debt Growth is Accelerating:

In just under a decade, the national debt has almost doubled—from RM686.8 billion in 2017 to nearly RM1.3 trillion in 2025. That’s a steep increase, especially considering that economic growth has not doubled in the same period.

2. Crossing the Debt Ceiling:

The fact that the debt-to-GDP ratio has exceeded the 65% statutory ceiling is significant. It not only raises questions about fiscal discipline but could also erode investor confidence and increase the cost of future borrowing.

3. Political Irony and Accountability:

The public frustration is valid—those who once sounded the alarm on debt under Najib are now overseeing even higher debt levels with less public discourse or scrutiny. This suggests selective narratives depending on who holds power.

4. The Real Danger:

High debt isn’t automatically bad if it’s used for productive investments that stimulate long-term growth (e.g., infrastructure, education, healthcare). But if it goes towards recurring expenses or inefficient subsidies, it only worsens fiscal vulnerability.

5. What’s Missing?

There's a need for greater transparency—where is the borrowed money going? What’s the plan to manage or reduce this debt in the long term?

Bottom line: Regardless of political affiliation, Malaysians should demand accountability and fiscal responsibility. High debt levels affect future generations, and silence or justification from any side is dangerous if it lacks long-term sustainability planning.