PUTRAJAYA: Finance Minister Lim Guan Eng today made it clear, he has not approved the sale of any national assets.
He said international credit rating agencies’ affirmation of Malaysia’s sovereign credit rating at A- or A3 with stable outlook was strong evidence that the Pakatan Harapan (PH) government had been prudent and transparent in the fiscal management of the government.
"The confidence of international bodies and investors refutes irresponsible parties who have distorted facts in order to spread false information about the country’s debt and liabilities position, including false allegations that the Finance Ministry is selling national assets and land.
"It should be emphasised that I have not approved any sale of national assets and land, which is in fact implemented by other agencies not associated with the Finance Ministry," he said in a statement.
The recent positive reports from the World Bank and the International Monetary Fund (IMF) had also confirmed Malaysia’s fiscal position as previously reported by the government.
The minister said Malaysia was reported to be making progress on the reform agenda which had seen sustained economic growth, subdued inflation and a current account surplus.
"Overall, the government’s debt and liabilities has decreased from 79.3 per cent of GDP in end-2017 to 77.1 per cent of GDP as at end-June 2019.
"This shows the success and commitment of the PH government in its debt and liabilities consolidation efforts.
"In the medium term, the government targets to further lower its total debt and liabilities to 65 per cent of GDP by the end of 2025," he added.
The fiscal deficit target for 2019 of RM52 billion or 3.4 per cent of GDP would be achieved, as reported by the World Bank and the IMF, said the minister.
This represents a reduction from the fiscal deficit of 3.7 per cent of GDP in 2018, he said owing to the government’s successful rollout of open tenders and cost saving measures.
"Direct debt is expected to increase by RM52 billion in 2019 to fund the country’s development expenditure, which was approved by the Parliament in 2018.
"Aside from direct debt, the government’s liabilities also include committed government guarantees to implement public transportation and utilities projects.
"This includes mega infrastructure projects such as the LRT3, MRT2 and the Pan Borneo Highway with total cost exceeding RM75 billion," he said.
Lim said committed government guarantees had also increased due to scandals unfolded by the PH government after taking over.
"For example, the government’s commitment increased by RM20 billion to rescue Tabung Haji in order to protect the interests of depositors after international auditors discovered that the previous administration under the Barisan Nasional (BN) government had falsified Tabung Haji accounts to conceal huge losses and paid high dividends despite zero profits."