KUALA LUMPUR — July 16, 2020: The ratio of Malaysia’s accumulated debts to gross domestic product (GDP) at the end of last month was at 53.2 per cent, which was below the limit of 55 per cent.
This was stated by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz in a reply to Vivian Wong (DAP-Sandakan).
To a question by Datin Dr, Tan Yee Kew (PKR-Wangsa Maju) on the financial impact of the Covid-19 pandemic, Tengku Zafrul said the government is planning to restore the country’s economic resilience.
Since the country’s economy is an open economy, the country’s performance and investments are driven by global prospects and economic activities.
Due to that, the government will train its focus on efforts to restore economic resilience by diversifying our economic sources as well as strengthening our competitiveness and the country’s fiscal performance.
Malaysia’s trade volume however showed a decline of 8.7 per cent to RM688.6 billion for last January to May compared to a year ago.
Exports declined by 9.7 per cent to RM366.2 billion while imports went down by 7.5 per cent to RM322.4 billion. Trade surplus was valued at RM43.8 billion, a reduction of 23 per cent.
As a result of the pandemic, the government announced a RM295 billion economic stimulus package.
Tengku Zafrul informed Datuk Jalaluddin Alias (Barisan Nasional-Jelebu) that the stimulus package had not impacted the country’s finances as it only involved direct cash injection of only RM45 billion.
On the plan to resolve the reduced national income due to the drop in global crude oil prices, Tengku Zafrul said the government will cover the shortfall through one-off sources of dividends and special payments by government companies, exploring new tax revenues, saving oil subsidies, as well as restructuring and redistributing federal government expenditure.