Federal govt debt closes to RM800b or 52.7% of GDP

11 Oct 2019 / 16:14 H.

• As at end-June 2019, federal government debt stood at RM799.1 billion (52.7% of GDP).

• Debt comprises 96.3% of ringgit-denominated securities, and the balance of 3.7% is from offshore borrowings mainly in US dollar and yen.

• Domestic debt stood at RM769.9 billion.

• External debt was at RM931.1 billion (63.1% of GDP). The slight increase was due to a sizeable increase in medium- and long-term offshore borrowing.

• As at end-June 2019, total federal government debt and liabilities exposure was estimated at RM1.17 trillion or 77.1% of GDP, due to an increase in federal government debt and committed guarantees.

• Federal government debt comprised about 70% of the total exposure.

• Gross financing needs of the government in 2020 are expected to be primarily sourced from the domestic market and remain below the IMF’s threshold for emerging economies.

• The government is committed to its debt consolidation path with a targeted debt-to-GDP ratio below 50% in the medium term.

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