Malaysian Prime Minister Details Government Borrowing for Development and Debt Repayment Amid Improving Economic Indicators

Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced that new government borrowings are being utilized to finance national development projects, including schools, hospitals, roads, and utilities, and to meet inherited financial obligations, such as repaying RM13 billion in 1MDB bonds in 2023. He noted that economic indicators show encouraging fundamentals, with GDP growth estimated at 5.3% in the third quarter of 2026 and the unemployment rate at a 10-year low of 2.9% as of September 2026. The fiscal deficit is projected to narrow to 3.6% in 2026, and the federal government's debt-to-GDP ratio is on a downward trajectory, expected to decline to 64% in 2026. Inflation is anticipated to remain below 2% this year.