The Institute for Democracy and Economic Affairs (IDEAS) said its research showed that only 23%, or RM79 billion, of the RM340 billion worth of stimulus packages passed came directly from the government.

“From that, only RM65 billion, or approximately 20% of the total stimulus package, was direct expenditure. Meanwhile, only RM1 billion was direct revenue losses to the government balance sheet as a result of payment exemptions,” said IDEAS in a statement.

It said the government relied on “its vast ecosystem including its statutory bodies, development finance institutes and social security agencies to avoid taking funds directly from its own balance sheets”.

IDEAS said the government relied a lot on the Employees Provident Fund, using contributors’ own money through programmes such as the reduction in EPF contributions and i-Lestari. These two programmes alone make up around 15% of the total stimulus package.”

On Monday, Muhyiddin had said the country lacked funds following the creation of various stimulus packages and an increased budget totalling over RM600 billion.

Tricia Yeoh, chief executive officer of IDEAS, said Muhyiddin’s statement may affect international investors’ perceptions of the country at a time when attracting foreign investment is more important than ever. Investors may begin to question Malaysia’s ability to meet its debt obligations, she said.

Another policy centre, Research for Social Advancement, has also recently described the prime minister’s remarks as “unsubstantiated and misleading” by misinterpreting the term “government spending” and overstating the burden on state coffers.

The centre said Malaysia could expect an increase in government revenue beyond the 2021 budget’s forecast because of recent increases in world oil prices.