Rafizi Warns Of Worsening Revenue Debt Crisis For Next Govt

---

 


PARLIAMENT | Former economy minister Rafizi Ramli (Harapan-Pandan) sounded the alarm over the government’s failure to narrow this year’s revenue gap despite an additional RM15.5 billion in income.
During his debate on Budget 2026, he commented on how the challenge was likely to increase in the coming years.
“So for anyone who wants to form the government two years from now, this means that this challenge of government revenue is the real issue,” he told the Dewan Rakyat.
He also flagged high levels of debt as the number one threat to the country in the future.
One of the ways this manifests is through infrastructure projects, he said.
“We know that these companies, these agencies (that carry out the projects) have to take on debt and then have it guaranteed by the government because the infrastructure projects, or projects they are implementing, are not able to get financing at the commercial value of the project - that is why the government has to guarantee it.
“So it is very likely that all the debt guarantees will one day continue to be borne by the government, no matter which government.
“This includes, for example, the guarantee to DanaInfra (Nasional Bhd), which has increased to RM85 billion,” he explained.
He named the following as other examples:
East Coast Rail Link (ECRL) - RM50 billion guarantee
National Higher Education Fund Corporation (PTPTN) - RM41 billion
Prasarana Malaysia Berhad - RM42 billion
ADSHe lamented how the government’s savings had gone to pay increasing interest on existing debt.
“In the end, we used all the savings to pay off the debt that increased by the same amount.
“We saved RM17 to RM18 billion and paid interest on the debt that increased to RM18 billion - (all that money) burned up just like that,” he said.
He attributed this to the absence of a more comprehensive overhaul in debt management.
Legacy debt from previous govts
In order to tackle the issue of burgeoning national debt, Rafizi called on the Finance Ministry, led by Anwar, to be more transparent about the issue.
“I believe the Finance Ministry needs to present on it at length because it is a matter that has not been discussed in depth in the House,” he said.
He also called for the matter to be debated in the Dewan Rakyat.
In July, economist Goh Lim Thye pointed out that Malaysia’s current debt level is largely inherited and not a result of the current administration’s policies.
The senior lecturer at Universiti Malaya’s Faculty of Business and Economics said the elevated debt stems from legacy issues and crisis-related spending, pointing to the Covid-19 pandemic and the long shadow of the 1MDB scandal.
Between 2020 and 2022, the Perikatan Nasional-led government rolled out over RM530 billion in stimulus measures, including over RM100 billion in direct fiscal injections. While these moves helped preserve jobs and prevent economic collapse, they significantly increased public debt.
The 1MDB scandal also saddled the government with long-term obligations and dented investor trust, said Goh. - Mkini

---