Anwar Ibrahim Reaffirms Commitment to Reducing National Debt

Muar, The The Gulf Observer: Prime Minister Datuk Seri Anwar Ibrahim has reiterated the government’s commitment to reducing Malaysia’s national debt and avoiding unnecessary borrowing, emphasizing the importance of financial responsibility to safeguard the future of the nation and its younger generations.

Speaking at the launch of the 2025 National Month and Fly the Jalur Gemilang campaign at Dataran Tanjung Emas on Sunday, Anwar stressed that while borrowing for essential development projects is sometimes warranted, accumulating debt without clear justification must be avoided.

“Our debt is still high. If we don’t pay it back, then who will want to invest in us?” he said. “We want to bring the debt level down and avoid adding new loans because, in the end, the ones who will pay for it are our children.”

The Prime Minister addressed recent criticism directed at his administration over the rising debt levels, stating that critics fail to understand the context of the government’s financial decisions. “We took a new loan of RM100 billion in 2022 to repay earlier borrowings and their interest. In 2023, it went down to RM90 billion, and this year it is RM80 billion. We are reducing it gradually,” he explained.

Anwar acknowledged that previous leaders, such as the late Tun Abdul Razak, had borrowed from the World Bank for impactful initiatives such as the establishment of the Federal Land Development Authority (FELDA) and rural development. He noted that such strategic borrowing for national benefit was acceptable.

However, he strongly condemned the misuse of public funds, warning against taking loans for the purpose of personal enrichment. “But if we’re talking about taking loans to ‘sakau’ (plunder), that is what we are fighting against now,” Anwar said, urging the public to elect leaders who prioritize national interest over personal or familial gain.

He pointed to allegations involving massive wealth held by the family members of a former leader, including RM1.2 billion and RM4 billion in assets, respectively. “I am not vengeful or going after old people. I just want the people’s money to be returned,” he stressed.

While acknowledging the contributions of past administrations, Anwar said his government is focused on correcting weaknesses and improving governance. “My colleagues and I in the Cabinet are working to improve past weaknesses, whether it’s attitude, leadership, or the abuse of power for personal or family gain,” he said.

Separately, the Prime Minister defended the government’s decision to reduce fuel subsidies for foreigners, affirming that the policy prioritizes the needs of Malaysians. “I am Prime Minister for Malaysians, not for foreigners,” Anwar stated.

He dismissed criticism that the move was unfair to foreigners, emphasizing that most do not pay income tax in Malaysia. “No country in the world will allow foreigners to enjoy such benefits as locals,” he added.

Anwar said the recent six sen reduction in petrol prices has brought the domestic rate to RM1.99 per litre, significantly lower than prices in neighbouring countries such as Singapore, Thailand, and Indonesia. “Foreigners can buy petrol at RM2.50 or RM2.60,” he said.