LONDON: Prime Minister Tun Dr Mahathir Mohamad said that the government is short of money, as it is saddled with debts of over RM1 trillion inherited from the previous administration.
He said the bulk of funds available is diverted towards servicing loans.
“(So) to solve the debt problem is our priority. (Failure) to do so places the country at risk of slipping into bankruptcy,” Dr Mahathir said.
At a meeting over high tea with Malaysians residing in the United Kingdom on Sunday, the premier thanked them and the rest of the Malaysian diaspora for contributing to the Tabung Harapan Negara trust fund which was set up to reduce the country’s debts.
“(You) decided to voluntarily collect money to help the government. Of course, the amount is not much, (but) the gesture is much welcomed, a gesture of (your) loyalty to (your) country,” he said.
Responding to a question from a guest about funding the nation’s security needs, Dr Mahathir stressed that the government will allocate more expenditure for education instead of defence, even though the country is in dire need of new weapons.
“We will survive even with outdated aircraft. We will spend more money on education,” he said.
Dr Mahathir said that as soon as “the government has money“, Malaysia will send more students abroad, as well as lure back Malaysian talents from overseas.
The prime minister also invited Malaysian companies operating overseas to relocate to Malaysia.