News & Articles Malaysia’s debt in safe zone, Dewan Rakyat told – Bernama
Malaysia’s debt in safe zone, Dewan Rakyat told – Bernama
26 Mar 2015
Malaysia's debt level is still in the safe zone with a deficit of less than 4%, the Dewan Rakyat was told today.
Minister in the Prime Minister's Department (JPM), Datuk Seri Abdul Wahid Omar said Malaysia managed to reduce the deficit from 6.9% in 2009 to 3.5% in 2014.
"This means that Malaysia has entered the safe zone. In terms of financial management, we are getting better," he said when winding up debate (JPM) on the Yang di-Pertuan Agong's opening address.
A country's financial position is deemed to be in the safe zone if it has debt of 70%, including contingent liabilities and a deficit of less than 4%.
On the other hand, a country's financial position is deemed critical if it has debt of over 100% of Gross Domestic Product (GDP) and deficit of over 4%.
Replying to a question from Nga Kor Ming (DAP-Taiping), Abdul Wahid said the government would ensure the country's debt remain below 55% of GDP.
He was confident Malaysia would achieve developed nation status with high income by 2020 despite the challenging economic conditions.
"This will be achieved via the implementation of projects and programmes under the Tenth Malaysia Plan (2011-2015) and core strategies, including 'game changer' under the Eleventh Malaysia Plan (2016-2020).
"Among others, the focus will be on innovation and productivity to improve competitiveness and ensure sustainable growth."
Abdul Wahid said besides measuring the status of developed countries in terms of economic performance, human capital development will also be emphasised.– Bernama, March 26, 2015.
Minister in the Prime Minister's Department (JPM), Datuk Seri Abdul Wahid Omar said Malaysia managed to reduce the deficit from 6.9% in 2009 to 3.5% in 2014.
"This means that Malaysia has entered the safe zone. In terms of financial management, we are getting better," he said when winding up debate (JPM) on the Yang di-Pertuan Agong's opening address.
A country's financial position is deemed to be in the safe zone if it has debt of 70%, including contingent liabilities and a deficit of less than 4%.
On the other hand, a country's financial position is deemed critical if it has debt of over 100% of Gross Domestic Product (GDP) and deficit of over 4%.
Replying to a question from Nga Kor Ming (DAP-Taiping), Abdul Wahid said the government would ensure the country's debt remain below 55% of GDP.
He was confident Malaysia would achieve developed nation status with high income by 2020 despite the challenging economic conditions.
"This will be achieved via the implementation of projects and programmes under the Tenth Malaysia Plan (2011-2015) and core strategies, including 'game changer' under the Eleventh Malaysia Plan (2016-2020).
"Among others, the focus will be on innovation and productivity to improve competitiveness and ensure sustainable growth."
Abdul Wahid said besides measuring the status of developed countries in terms of economic performance, human capital development will also be emphasised.– Bernama, March 26, 2015.
Source: Malaysian Insider