THE government is bearing the debt incurred by the previous administration, including RM13 billion worth of 1Malaysia Development Berhad (1MDB) bonds.
Prime Minister Datuk Seri Anwar Ibrahim denied allegations that the government is taking on new debt to cover national expenditures.
Instead, he explained that the total debt will continue to rise as long as the national budget remains in deficit and is financed through borrowing.
Anwar, who also serves as the Minister of Finance, noted that debt is cumulative, with net borrowing for the current year added to the outstanding debt balance from previous years.
Furthermore, he stated that the government inherited a total debt exceeding RM1 trillion, with a sharp increase occurring between 2020 and 2022, necessitated by the COVID-19 pandemic.
“New borrowing under this administration is intended to finance national development—including schools, hospitals, roads, as well as water and electricity supply.
“We are also compelled to meet inherited financial obligations. In 2023 alone, RM13 billion was required to settle 1MDB bonds,” he said during the Prime Minister’s Question Time in the Dewan Rakyat today.
He was responding to a question from Lee Chuan How (PH-Ipoh Timor) regarding why the national debt has not yet been reduced to a more sustainable level, and whether the current fiscal position allows the government room to implement interventions to protect the economy and the well-being of the people, should the conflict in West Asia escalate further. – November 12, 2026
