KUALA LUMPUR — May 15, 2019: The Finance Ministry has formed a Debt Management Office to review and manage the government’s debt and liabilities, with the primary aim of preventing them from growing out of control and put a stop to reckless borrowings.
The office’s duties include scheduling bond issuance and overall borrowings by the government, statutory bodies and government-owned companies in an orderly fashion to attain the cheapest interest rates and coupon payments.
It also includes restructuring relevant bonds and borrowings wherever possible to save costs by reducing debt repayments and formulating strategies to reduce the government’s debt and liability burden.
The DMO will be chaired by minister Lim Guan Eng, with members comprising the Chief Secretary to the Government Datuk Seri Dr. Ismail Bakar, Treasury secretary-general Datuk Ahmad Badri Mohd. Zahir, Ministry of Economic Affairs secretary-general Datuk Saiful Anuar Lebai Hussen and Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus.
Others are Securities Commission executive chairman Datuk Syed Zaid Albar, Permodalan Nasional Berhad chairman Tan Sri Dr. Zeti Akhtar Aziz, Accountant-General Datuk Saat Esa, economic advisor to the prime minister Dr. Muhammad Abdul Khalid and PricewaterhouseCoopers Malaysia executive chairman Datuk Mohammad Faiz Azmi.
The strategies and plans from the office will be presented to the fiscal policy committee chaired by the PM.
The plan to form the DMO was mentioned by Lim when tabling the national budget last year. — Bernama