KUALA LUMPUR: The Council of Eminent Persons chairman Tun Daim Zainuddin is expected to explain Malaysia’s current debt soon, said Tan Sri Dr. Zeti Akhtar Aziz.
Zeti, the former Bank Negara Malaysia governor who is part of the five-member council, declined comment on the country’s debt, which reportedly had ballooned to over RM1 trillion.
“I’m not going to comment. You all know Tun Daim is going to make the announcement. Thank you!” she said after a meeting between the council and several business chambers representatives here today.
Finance Minister Lim Guan Eng on Tuesday confirmed Prime Minister Tun Dr Mahathir Mohamad’s statement that Malaysia’s debt had breached RM1 trillion. This was reportedly fuelled by the 1Malaysia Development Fund financial scandal and mega projects by the previous government.
As of June 2017, Ministry of Finance’s data showed the federal debt stood at RM685.1 billion.
Dr Mahathir had also disclosed that Malaysia’s debt to gross domestic product ratio was 65 per cent, not 51 per cent as claimed by the previous government.
The council was set up to advise the new government in policy-making, implementing its 100-day election manifesto promises and reviewing the country’s existing business dealings.
Tan Sri Oh Siew Nam, who was also seen at the meeting today, did not comment when asked whether Robert Kuok would present in another meeting with the council.
Oh previously involved in the National Economic Council for 20 years with Daim.
Meanwhile, former prime minister Datuk Seri Najib Razak said in his Facebook posting last night that Dr. Mahathir had not provided any details over the country’s debt.
“It will just unsettle the financial markets, alarm the credit rating agencies and investors confidence in our institutions such as our central bank,” he said.
Najib added that as a result of alarming and confusing statements, Bursa Malaysia’s key index had fallen the most among global stock markets, wiping out tens of billions of ringgit in market value in one day.
At closing yesterday, Bursa Malaysia index plunged 40.78 points or 2.21 per cent to settle at 1,804.25 points.