PUTRAJAYA: Prime Minister Anwar Ibrahim has denied a claim that all 1MDB-related debts have been paid off, saying the government continues to shoulder substantial debt liabilities.
Speaking at the monthly assembly with the finance ministry's staff here today, Anwar questioned the source of the claim.
“It was said the 1MDB debt was fully paid. I don’t know where it came from or where it was read, but that is incorrect,” he said.
The finance ministry previously said in a written parliamentary reply that as of Aug 31, the government paid RM42.5 billion towards 1MDB-related commitments, including principal repayments, interest, legal fees and operational costs.
If there is no additional fund recovery in the future, the government will still have to bear the remaining obligation of RM20.1 billion, the ministry said.
Anwar said the total national debt may increase because the government is still required to pay other debts with interest, while also managing current economic needs.
He said any additional borrowing must be managed responsibly to prevent the next generation from bearing the burden of excessive spending from the current government.
“A responsible government only makes loans when needed to manage the economy, while also always planning for the future,” he said.
Separately, Anwar said that although the 2027 budget could not meet every demand, it was well received by the public because the government made an effort to address the needs of groups.
He highlighted several initiatives being implemented following the budget’s announcement, including the opening of registrations for homes at Bandar Madani in Sungai Besi by the housing and local government ministry, and a special RM1,000 aid payment for taxi drivers by the transport ministry.
He said those who criticised the budget did not understand the government’s economic policy, and urged them to study and read the budget he tabled in the Dewan Rakyat on Oct 9.
“The haze is in the air, but the budget is not haze. The problem is that it was not read. If you read it, the numbers and data are clear, and it was made carefully,” he said.