Federal govt debt at RM685b, mostly in ringgit

PETALING JAYA: The federal government debt, comprising cumulative federal government borrowings, stood at RM685 billion as at end of June 2017.
With a current account surplus, the debt to finance development expenditure.
The debt composition remains favourable with 96.7% of the papers denominated in ringgit while the balance was from offshore borrowings, reflecting minimal foreign currency risk exposure.
The bulk of the offshore borrowing is denominated in US dollar.
The government said, with the outstanding amount of Malaysian Government Securities (MGS), Malaysian Government Investment Issues (MGII) and Malaysian Islamic Treasury Bills (Mitib) instruments significantly lower at 46.5% of GDP, the government has ample fiscal space to implement counter-cyclical measures in the event of external shocks.
The self-imposed statutory debt limit of 55% of GDP is confined to only the three instruments.
The government said it remains committed to contain the total federal government debt within the self-imposed limit, while ensuring debt consolidation in the long run.