HAS THE NATIONAL DEBT REALLY DECREASED BY RM20 BILLION?

 

HAS THE NATIONAL DEBT REALLY DECREASED BY RM20 BILLION?

Today, many were surprised by the latest statement from Malaysia’s Prime Minister (PMX), claiming that the national debt has decreased by RM20 billion. This statement has sparked various reactions and confusion among the public. Many are asking: how can the debt decrease when PMX himself previously stated that the national debt continues to rise and has already exceeded RM1.5 trillion?

Whether this was a media misreport or a misstatement by PMX, the truth is that the decrease does not refer to the total national debt, but rather to a reduction in the amount of new annual government borrowings.

Government borrowings have decreased from RM100 billion in 2022 to RM85 billion in 2024, and are expected to further decline to RM80 billion in 2025. Therefore, the claimed “RM20 billion reduction” actually refers to the comparison of new borrowings, not the overall national debt.

Thus, PMX’s statement can be seen as misleading, as it may lead the general public to believe that the national debt has been reduced by RM20 billion, when in fact, the total debt continues to rise year after year.

KFAK