Here are five reasons why we should be concerned about the Malaysian government’s debt and expenditure levels.
1) Federal government debt has been growing by >10% annually over the last decade
Take a look at the rising government debt level and the projections into the future.
2007 – RM267bn
2017 – RM687bn (end-September, 51.1% of GDP)
2021 – RM1 trillion (estimated)
2028 – RM2tn (est)
2032 – RM3tn (est)
So far, the government has been careful to keep the debt level below 55% of GDP, but this figure does not capture the full picture, as we shall see below.