KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak said the government's debt as of June 2016 is at RM655.7 billion or 53.2 percent of gross domestic product (GDP).
He said 95.9 per cent of the amount, or RM628.8 billion is domestic debt.
“A total of 4.1 per cent or RM26.9 is offshore borrowing.
“The federal debt is in manageable position and we are categorised as a moderate national debt,” he said during the Minister's Question Time (MQT) session in Parliament today.
On another matter, he said government-backed loans amounted to RM180.9 billion or 14.7 per cent of gross domestic product (GDP) as of June 2016.
He said the loans are spent on infrastructure, PTPTN (National Higher Education Fund Corporation) and Prasarana (government-linked transportation company).
Najib said the government is working to ensure that public debt level remains below 55 per cent of GDP.
“The government will take several measures to our ensure our spending is not more than our income.
"We will make sure we have surplus and ensure that the loans are used to grow the economy.
"Priority will be given to internal borrowing, and we will also emphasis on prudent spending so that we can manage the debt,” he said.
Opposition lawmaker Tan Seng Giaw (DAP-Kepong) asked Najib on where the RM26.9b billion offshore came from.
The Pekan MP replied that the money is coming mostly from sukuk published by Malaysia and subscribed by international community.
“We do this because it will send a signal that they have confidence in our economic management,” he said.