The Federal government debt remains manageable, putting Malaysia at a moderate national debt level at RM685.1 billion or 50.9 per cent of the country's gross domestic product (GDP), the Finance Ministry said. FILE PIC

KUALA LUMPUR: The Federal government debt remains manageable, putting Malaysia at a moderate national debt level at RM685.1 billion or 50.9 per cent of the country's gross domestic product (GDP), the Finance Ministry said.

Out of this figure, RM662.4 billion or 49.2 per cent of the GDP was domestic debt, while RM22.7 billion or 1.7 per cent of the GDP was offshore loans.

"In terms of creditors to the Federal government, RM496.2 billion or 72.4 per cent of the government's bonds and sukuk were held by domestic investors.

"The investors consist of strong and long term institutions such as Bank Negara Malaysia and banking institutions (29.7 per cent), Employees Provident Fund (EPF) (27.2 per cent), insurance companies (4.5 per cent), Retirement Fund Incorporated (3.5 per cent), development financial institutions (3 per cent), non-banking financial institutions (0.1 per cent) and others (4.4 per cent).

"The remaining RM188.8 billion or 27.6 per cent is held by non-residents such as fund or asset managers (10 per cent), central bank, supranational and government (8.5 per cent), retirement funds (4.8 per cent), banking institutions (2.3 per cent), insurance companies (0.8 per cent) and two-way institutions and others (1.2 per cent)," it said in a parliamentary written reply today.

DAP's Seputeh MP Teresa Kok had asked the ministry to state the total internal and external national debt. She also asked for the list of the ten biggest creditors of the government and loans given by them.

The ministry also expressed the government's commitment in ensuring the Federal government debt level would not exceed 55 per cent of the GDP.

"Fiscal consolidation measures will be continued to reduce deficit level in stages. This position could reduce debt level and the government's need to borrow.

"Strict compliance towards fiscal discipline as well as good debt management will be emphasised to ensure a strengthened fiscal and macroeconomic position as well as to mitigate any crisis," it added.

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