PRIME MINISTER Datuk Seri Anwar Ibrahim has reaffirmed that the Madani Government will not increase Malaysia’s debt burden despite improvements in the country’s debt-to-GDP ratio, saying the government remains weighed down by legacy financial commitments.
Anwar, who is also Finance Minister, said that while various measures had helped reduce the debt ratio, Malaysia continued to face substantial repayment obligations, particularly interest payments arising from previous borrowings.
He said these included commitments linked to 1Malaysia Development Berhad (1MDB), Lembaga Tabung Haji (TH) and FELDA, which continue to place pressure on the government’s finances.
"I do not want to continue adding to the country's debt. Some people say government debt is increasing.
“The reality is that the government debt ratio is declining, but the amount of debt repayment remains high because we still have to pay interest on old debts. We are still paying 1MDB debts. How can that be denied?" he said during a Prime Minister and Chief Secretary to the Government engagement session with civil servants from the Central Zone at Dewan Sultan Idris Shah, Universiti Islam Selangor in Kajan today.
Also present were Selangor Menteri Besar Datuk Seri Amirudin Shari, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Chief Director of Public Service Tan Sri Wan Ahmad Dahlan Abdul Aziz and Universiti Islam Selangor Vice-Chancellor Datuk Prof Dr Mohd Farid Ravi Abdullah.
The Tambun Member of Parliament said the governmentcontinued to shoulder major financial pressures caused by past investment decisions and administrative weaknesses, including the purchase of assets at prices significantly above their actual market value.
He said these inherited commitments had forced the current administration to allocate large sums annually for repayments, reducing fiscal flexibility for development programmes and initiatives aimed at improving public welfare.
As an example, Anwar cited an asset, including a hotel, which he said had been purchased for RM400 million despite its estimated actual value being around RM160 million.
"I know this because the reports reached me. When I took over, I was the one who had to resolve these issues. Now, if we were to sell it again, it may only be worth around RM100 million. That is the reality," he said.
Anwar acknowledged that revisiting past financial issues could attract criticism from those who believe previous matters should no longer be discussed.
"Will I become popular by talking about this? Certainly not. People will be angry. They will say do not bring up old stories. But who has to pay for it now? The government today," he said.
He added that the government’s financial obligations towards FELDA alone amounted to nearly RM1 billion annually.
Putrajaya Moves To Address Prolonged Civil Service Promotion Delays
Meanwhile, Anwar said the government would also review cases involving civil servants who have waited as long as eight years for promotion, directing that prolonged delays in career progression be resolved quickly.
He said the matter would be discussed at his next meeting with Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar following feedback received from civil servants during engagement sessions involving the Chief Secretary and the Public Service Department (PSD).
Anwar acknowledged that although salary increases had already been introduced for public sector employees, concerns remained over lengthy promotion waiting periods affecting officers in certain grades.
"Yes, salaries have increased, but I have also heard complaints that officers in certain grades have to wait as long as eight years for a promotion. I asked the Chief Secretary about this, and he told me it would be reviewed at the next meeting.
"Cases where promotions are taking far too long must be expedited, and that is the instruction given," he said.
He said the promotion review was part of wider efforts to strengthen civil servants’ welfare, stressing that improvements must extend beyond salary adjustments to include fair career advancement opportunities.
He added that when the Madani Government took office, it found that housing facilities for civil servants, teachers, Armed Forces personnel and police officers were in poor condition, prompting gradual improvements through allocations beginning with Budget 2023.
Anwar also revealed that he had rejected the Public Service Department’s initial salary increase proposal because he believed the recommended adjustment was insufficient, despite concerns over fiscal constraints and the country’s inherited debt burden.
"When they submitted their proposal, I told them I could not accept it. They thought I was rejecting it altogether, but I could not accept it then because I felt the proposed increase was not high enough.
"In the end, I insisted on a larger pay rise," he said.
He added that the government could not continue expecting civil servants to deliver higher performance, maintain discipline and accept accountability for mistakes while failing to address their welfare.
Anwar said improvements in salaries, working conditions and career progression must move together to ensure a more motivated and effective public service. - July 20, 2026
