Pmo Sets Up Committee To Reduce Govt Debt

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PETALING JAYA: The Prime Minister's Office has announced the establishment of the Debt and Liability Management Committee
The key objective of this committee is to reduce the government's debt and liabilities to a manageable level, it said in a statement
"The committee is expected to complete its task within the next 18 months," it read
Members of the Committee include Finance Ministry (MOF) Treasury Secretary-General Datuk Ahmad Badri Mohd Zahir, Head of Advisory Division in the Attorney General's Chambers Toh Puan AzianMohd Aziz, Economic Adviser to the Prime Minister Dr Muhammed Abdul Khalid, Bank Negara Malaysia board member Gooi Hoe Soon and Securities Commission board member Faris Rabidin
The committee reports directly to the Prime Minister
In November 2018, the Finance Ministry said that a total of RM70bil in federal government debt is expected to mature in 2019, out of which about 25% is to be redeemed in the first half of the year, reflecting a lower refinancing risk in the near term.In its 2019 Fiscal Outlook and Federal Government Revenues Estimates report, the MoF said under the 2019 Budget, the federal government's gross borrowing requirements are anticipated to be higher for deficit financing and refinancing of mature papers
"Despite higher borrowing requirement, the average gross financing need to Gross Domestic Product (GDP) in 2019 is estimated to remain well below the average International Monetary Fund (IMF) threshold of 15% for emerging economies," it said
The ministry further said that the government is also looking at tapping into international markets for portfolio diversification and new benchmarking purpose as well as stimulate financial market trading activities.- Star

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