Latest news with #RM80bil
The Star
8 hours ago
- Business
- The Star
Don't downplay seriousness of national debt
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim must cease using selective framing and misrepresenting concepts to downplay the seriousness of the national debt or to claim undue credit. The public deserves transparency, especially amid rising inflation, an increasing cost of living, and growing economic hardship. Urgently needed are concrete, revenue-generating economic policies, not a continued reliance on tax increases and subsidy reductions that add financial pressure on the rakyat. Recently, the Prime Minister stated that Malaysia's new borrowings have decreased annually, from RM100bil in 2022 to RM80bil in 2024. He also claimed that consistent efforts have been made since 2022 to reduce the fiscal deficit from 5.5% to a projected 3.8% this year. However, this narrative attempts to obscure the actual increase in overall national debt by focusing only on the decline in new borrowing. The claim of a RM20bil drop in new debt over three years does not reflect the full picture. According to the latest fiscal and debt data released by Bank Negara Malaysia, the national debt continues to rise. Official reports, such as the Government Finance Statistics and the Economic Outlook Report, show that federal government debt exceeded RM1.17tril at the end of 2023. This figure rose to RM1.6324tril in 2024 and remained high at RM1.2476tril as of the first quarter of 2025. These numbers directly contradict the Prime Minister's claims and reveal a clear attempt to present a misleading version of the national debt status by selectively using statistics. National debt cannot be assessed by focusing solely on new borrowings. The total size of the debt, the debt-to-GDP ratio, refinancing obligations, and interest liabilities are all key structural factors that must be addressed. Suggesting that borrowing slightly less this year indicates meaningful fiscal improvement underestimates the public's understanding and concern. What matters most to the people is the actual debt burden carried by the country, not how the government chooses to interpret the data. If the debt continues to grow and interest payments increase, then the Prime Minister's remarks amount to self-deception and risk eroding public trust. Despite repeated assurances of fiscal reform and financial discipline, the Unity Government has yet to demonstrate genuine progress in reducing national debt or budget deficits over the past two years. Instead, it has expanded the Sales and Services Tax (SST) and reduced subsidies, effectively shifting the fiscal burden onto the public while failing to rein in government expenditure. Balancing the national budget should not come at the expense of ordinary Malaysians. The real crisis today lies in inflation and the rising cost of living. Yet the government has failed to introduce any substantial, revenue-boosting economic policy or reform plan. What the country truly needs are forward-looking policies that raise incomes, encourage investment, and create employment opportunities. Fiscal reforms must not be used as an excuse to add to the public's burden. Malaysians do not need more political packaging. What is urgently required are real, effective solutions that provide relief and restore confidence. Saw Yee Fung MCA Youth Secretary General
The Star
27-05-2025
- Business
- The Star
Sim: Investing on human resources will ensure further growth
KUALA LUMPUR: It is time for Asean countries to work together to become a self-sustainable region in the face of economic uncertainties arising from conflicts between global powers, says Steven Sim. The Human Resources Minister said this must include improving the sustainability of key sectors of economic and human resource (HR) development for all Asean countries. He called on the region to enhance its collaboration on human development by sharing best practices and solutions to regional challenges. 'Malaysia itself spends RM80bil on education annually, with up to another RM7bil on skills education, making it almost RM100bil spent a year on HR development. 'If this number is an average even among just 10 of our Asean member states, we are looking at about a trillion budget a year from Asean governments alone for HR development. 'This is why initiatives like the Asean Human Capital Development Investment Symposium (AHCDIS) are key to help us better utilise our HR best practices and solutions among us. 'Combined with our almost 60-year long collaboration as its core, we must utilise our logical and natural tendency to work towards making our economies sustainable,' he said in his speech during AHCDIS here yesterday. Sim said this was especially due to the current turmoil of global geo-economic dynamics that could leave Asean countries to suffer economically. 'For the last half decade, our region has been defined by its mass production model economy, offering low- to mid-skill and low-cost labour input for everyone, which has lifted many members from poverty. 'But it has become unsustainable to offer continual cost cutting to the global economy, especially in an age where global players are calling for more inward nationalism and declining global cooperation. 'We are now constantly depressed and threatened by the big boys despite decades of offering cheap labour and resources to build some of their biggest companies in our region,' he added at the two-day event here. AHCDIS is part of the Human Resources Ministry's Asean Year of Skills (AYOS) 2025 initiative and organised by Human Resources Development Corp (HRD Corp) in collaboration with the International Labour Organisation (ILO) and supported by the Asean Secretariat (ASEC). HRD Corp chairman Datuk Abu Huraira Abu Yazid said the symposium seeks to provide a platform for all stakeholders to explore innovative workforce skills financing solutions. 'This symposium is not just a gathering of experts but a regional action platform where policymakers, employers' organisations, worker representatives, development partners and education institutions come together. 'They can then use this collaboration to identify actionable solutions, share best practices and build momentum for long-term investments in human capital across the region,' he said in his speech at the event. AYOS 2025 organising chairman Rony Ambrose Gobilee said the symposium serves as a key platform to help industries shape and train their workforce for a sustainable future. 'Skills in digitalisation. and technical and vocational education and training (TVET) in particular, are the focus of the symposium as they are the most key skills going into the 21st century. 'While knowledge of concepts is important, these two skills (digitalisation and TVET) will be the most in-demand if we wish to become a sustainable economic region,' he added.
