KUALA LUMPUR: Malaysians and certain political parties have been advised to avoid spreading misinformation will damage both investor and consumer confidence in the economy, Minister in the Prime Minister’s Department Datuk Abdul Rahman Dahlan said.
He said responsible Malaysians should not share or spread such misinformation and propaganda as this is akin to “sabotaging our own economy.”
Rahman was responding to a series of misleading messages spreading on WhatsApp about the country's economy, particularly centred on the current government debt that is causing anxiety among some Malaysians.
"Much of the anxiety and accusations is that our ratio is close to the 55 per cent self-imposed limit set by the Barisan Nasional government and that if we breach this limit, Malaysia will be in trouble.
"Certain more irresponsible messages even allege Malaysia will be bankrupt if we breach this 55 per cent level," he said in a Facebook posting.
Rahman pointed out that the country's current debt-to-GDP ratio of 53.4 per cent, although higher than it was in 2007 at 40.1 per cent, was still within manageable levels.
"This level is still not high when compared to historical levels such as during the period between 1980 to 1985 when our debt-to-GDP ratio increased from 44.0 per cent to 103.4 per cent and stayed above the 55 per cent level until the year 1994.
"Therefore, it is illogical that even if Malaysia breaches the 55 per cent debt-to-GDP level then Malaysia would be ‘bankrupt’ or our economy will be in trouble as alleged by certain quarters," he pointed out.
Rahman further said that due to years of good economic growth, especially since the year 2009, the country's current annualised GDP is currently estimated at RM1.2 trillion as at June 30 2016, which is about 17 times the size of Malaysia's economy in 1986 and about three times the size in 2003.
"If we did not go bankrupt at 103.4 per cent in 1985, then how are we going to be bankrupt at 55 per cent? Our debt levels must be looked at in relation to our income and not just based on absolute amounts," Rahman emphasised.
Current debt-to-GDP ratio is manageable and the economy is still enjoying decent economic growth of five per cent for the year 2015 and 4.1 per cent for the 1st half of 2016, he said.
"Despite the current low commodity prices, the effects of Brexit and the overall uncertain global economic conditions, our government has no intention to breach this 55 per cent limit and will continue to manage our finances responsibly," Rahman added.
He expressed confidence that the government under the leadership of the Prime Minister will ensure that Malaysia continues to enjoy economic growth, prioritise the well-being of its citizens and continue to develop Malaysia as the country progress to a high-income country status.