PUTRAJAYA: Prime Minister Tun Dr Mahathir Mohamad has disclosed that Malaysia's debt ratio to gross domestic product (GDP) is 65 per cent and not 51 per cent as claimed by the previous government.
In a media briefing here after the new government’s first Cabinet meeting, Dr Mahathir said the debt ratio beyond 55 per cent was financially unhealthy.
"I think the rate is 65 per cent," he told a press conference in a disappointed tone.
Also present were Deputy Prime Minister Datuk Seri Wan Azizah Wan Ismail and all cabinet ministers.
Earlier this year, the then prime minister Datuk Seri Najib Razak said the debt ratio to last year's GDP was 51 per cent, lower than the 55 per cent set by the government.
On whether the government would want to buy over Proton Holdings Bhd, Dr Mahathir said: “No. Proton is not owned by the government. It is controlled by (Tan Sri) Syed Mokhtar. It's up to him whether he wants to buy back or not. The government does not intend to buy back Proton.”
Late last year, Syed Mokhtar - who controls DRB-HICOM Bhd - sold a 49.9 per cent stake in Proton to Zhejiang Geely Group Holding Co for RM460.3 million.
Proton also sold its 51 per cent shares in Lotus Advance Technologies Sdn Bhd to Zhejiang Geely while the remaining 49 per cent stake went to Etika Automotive Sdn Bhd.
Dr Mahathir, who was Proton chairman, had lamented the loss of his “child” following the sale of a minority stake in Proton to Geely.
A year ago, when news of DRB-HICOM’s stake sale in Proton to Geely broke out, Dr Mahathir wrote in his blog: “I am a sissy. I cry even if Malaysians are dry-eyed. My child is lost. And soon my country. Please excuse me.”