11 Oct 2021
Malaysia to Raise Debt Ceiling Limit for Economic Improvement
The Index Today
Malaysia has announced to raise the government debt limit for the second time this year as it looks to fund new measures and improve the economy.
Lawmakers in the lower house have voted to a 65% increase of statutory debt ceiling for GDP until 2022. After this, the Prime Minister will evaluate and sign the bill before it is confirmed in law by the king. The new increase will allow the nation’s government to fund upcoming economic aid and a stimulus package worth 110 billion ringgit.
Finance Minister Zafrul Abdul Aziz said, “Most importantly, it will ensure continued support to all parties, particularly the B40 Group and the affected parties so that they can receive assistance to lighten their load.”
The new bill will also be allocated to the healthcare sector and small-medium business enterprises. The country is not the first in the region to seek funding to cope with the ongoing pandemic. Thailand was also in the list of south East Asian countries to increase debt limit.
Zafrul told lawmakers, “Based on the current status of the covid fund, the ministry of finance projects that this year’s allocation is insufficient. The government ha spent a 60 billion ringgit in total as of the end of September, leaving the fund with a balance of just 5 million ringgit.”
The new bill hardly faced any opposition and has received widespread support with only minor concerns over the allocation of funds.