THE Ministry of Finance has assured that Malaysia’s US$9.5 billion procurement of Boeing aircraft under the second phase of acquisition will not jeopardise the country’s debt levels nor adversely affect its fiscal deficit.
Deputy Finance Minister Lim Hui Ying said the acquisition forms part of the broader strategy outlined in the 13th Malaysia Plan (RMK13).
"At present, everything is within our expectations," said Hui Ying during a question-and-answer session in the Dewan Rakyat today.
She was responding to a supplementary question from Datuk Nik Muhammad Zawawi Salleh (PN–Pasir Puteh), who asked about the government’s contingency measures to manage national debt following Malaysia’s commitment to the aircraft purchase from the United States.
In response to an earlier query on why the government is allowing debt levels to remain high amid global geopolitical uncertainty, Hui Ying explained that the rise in national debt stems from the need to finance the fiscal deficit, primarily to support development expenditure (DE).
"This financing will naturally raise the government’s debt level for as long as our fiscal position remains in deficit," Bernama reported her saying.
She added that the government funds DE through a combination of tax revenue and non-tax income.
"To date, the government has never borrowed beyond the statutory limits permitted under the relevant federal debt acts."
"As of end-June 2025, Malaysian Government Securities, Malaysian Government Investment Issues, and Malaysian Islamic Treasury Bills stand at 62.7 per cent of GDP – below the 65 per cent ceiling set under Acts 637 and 275," she noted.
Hui Ying also stated that offshore borrowings total RM22.8 billion, well within the RM35 billion cap stipulated under Act 403, while Malaysian Treasury Bills stand at RM2 billion, remaining below the RM10 billion limit set under Act 188. - August 19, 2025
