‘Malaysia’s debt level still in safe zone’

KUALA LUMPUR: Malaysia’s debt level is still in the safe zone with a deficit of less than four per cent, the Dewan Rakyat was told yesterday.

Minister in the Prime Minister’s Department (JPM), Datuk Seri Abdul Wahid Omar said Malaysia managed to reduce the deficit from 6.9 per cent in 2009 to 3.5 per cent 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, here yesterday.

A country’s financial position is deemed to be in the safe zone if it has debt of 70 per cent, including contingent liabilities and deficit of less than four per cent.

On the other hand, a country’s financial position is deemed critical if it has debt of over 100 per cent of Gross Domestic Product ( GDP) and deficit of over four per cent.

Replying to a question from Nga Kor Ming ( DAP-Taiping), Abdul Wahid said the government would ensure the country’s debt remain below 55 per cent 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

This means that Malaysia has entered the safe zone. In terms of financial management, we are getting better. Datuk Seri Abdul Wahid Omar,Minister in the Prime Minister’s Department

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 is also emphasised.

“The aim is to create a society with good religious and spiritual education, good morals, ethical, liberal, tolerant, scientific, progressive and caring.” — Bernama