KUALA LUMPUR: Malaysia's national debt-to-gross domestic product (GDP) ratio average stood at 62.1 per cent for the year ending Dec 31, 2020.
This is an increase by RM86.562 billion or 10.9 per cent in federal government debt amounting to RM879.560 billion compared to RM792.998 billion.
The 2020 Auditor General's report stated that national statutory debt limit increased to 60 per cent of the GDP from 55 per cent previously starting Oct 26, 2020 until Dec 31 next year due to the Temporary Measures for Government Financing (Coronavirus Disease 2019 (Covid-19) or Act 830.
It was reported that the Dewan Rakyat on Oct 11 passed the second reading of the government's bill to increase the statutory debt limit to 65 per cent of GDP from 60 per cent previously.
"The federal statutory debt limit involved Islamic Treasury Bills, Malaysian Government Investment Issues and Malaysian Government Securities.
"The position of these three debt instruments for the year 2020 was RM820.018 billion or 57.9 per cent of the GDP.
"The federal government debt comprises domestic and external loans at RM851.284 billion and RM28.276 billion respectively," the report said
Domestic loans, said the report, registered an increase of RM87.051 billion or 11.4 per cent.
Unlike domestic loans, the federal government debt due involving external debt declined by RM0.489 billion or 1.7 per cent.
"The federal debt as reported in the federal government's financial statement are government's direct debt and it does not include debts by government agencies and government-linked companies," it said.