PETALING JAYA: These are the federal government’s liabilities as at Dec 31, 2017, as announced by Finance Minister Lim Guan Eng today.
- RM686.8 billion – official federal government debt (50.8% of Gross Domestic Product);
- RM199.1 billion – federal government commitment to paying off government guarantees (14.6% of GDP);
This amount was for various entities which were unable to service their debts, such as:
- Danainfra Nasional Bhd (RM42.2 billion);
- 1Malaysia Development Bhd (about RM38 billion);
- Prasarana Malaysia Bhd (RM26.6 billion);
- Malaysia Rail-Link Sdn Bhd (RM14.5 billion); and
- Govco Holdings Bhd (RM8.8 billion);
Together, they bring the total amount of liabilities to RM885.9 billion, representing 65.4% of GDP as highlighted by Prime Minister Mahathir Mohamad yesterday.
- RM201.4 billion (14.9% of GDP) in lease payments for Public-Private Partnership projects. The lease payments include the cost of rental, maintenance and other charges, for such projects as schools, hostels, roads, police stations, hospitals etc.
“These lease commitments were designed to circumvent the federal government’s limits on guarantees and debt,” the finance minister said.
- TOTAL DEBT AND LIABILITIES -RM1,087.3 billion, or 80.3% of Gross Domestic Product as at Dec 31, 2017.
Lim said: “Malaysians are rightly concerned with our debt situation, as we did when we were in the opposition.
“However, let me emphasise that the obligations and financial commitments of the federal government are unchanged before May 9 and today, after the elections. The only change is that the new federal government has decided to call a spade a spade.
“This new government puts the interest of the people first, and hence it is necessary to bite the bullet now, work hard to solve our problems, rather than let it explode in our faces at a later date.”