28th July 2025 - 2 min read
The government has reaffirmed its commitment to responsible borrowing, with a focus on reducing national debt to avoid placing unnecessary financial pressure on future generations.
Speaking at the launch of the 2025 National Month and Fly the Jalur Gemilang campaign in Dataran Tanjung Emas, Prime Minister Datuk Seri Anwar Ibrahim said efforts are being made to lower annual borrowing levels.
According to Anwar, total borrowings stood at RM100 billion in 2022, before being reduced to RM90 billion in 2023 and RM80 billion in 2024.
He explained that the government intends to avoid taking on additional debt unless necessary. “We do not want to take on more loans. If we keep taking loans, it will be a burden to the younger generation,” he said.
Anwar noted that borrowing has historically been used to support strategic national development. He cited former prime minister Tun Abdul Razak’s decision to borrow from the World Bank to establish the Federal Land Development Authority (FELDA) and fund rural development initiatives.
“Such loans for development I can accept, but I will oppose those who want to take loans and then siphon them,” he said.
He also emphasised the importance of continuing to service the country’s debt to maintain investor confidence. Responsible debt management, according to Anwar, plays a key role in creating a stable economic environment that can attract long-term investment.
The government’s broader financial strategy includes improving public sector efficiency, controlling spending, and supporting sustainable economic growth.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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