Public debt rises to RM1.81t, but ratio to GDP eases
KUALA LUMPUR: Malaysia’s public sector debt rose 3.2 per cent to RM1.81 trillion as at end-June 2026 from RM1.76 trillion last year.
Malaysia's public sector debt increased by 3.2% to RM1.81 trillion as of June 2026, marking a rise from RM1.76 trillion the previous year. However, the debt-to-GDP ratio declined from 86.8% to 83%, indicating a more manageable level of public debt relative to the country's economic output. The increase was primarily driven by a higher federal government debt, which now stands at RM1.38 trillion, up from RM1.32 trillion, and its debt-to-GDP ratio fell to 63.1% from 65.2%.
Domestic federal government debt rose to RM1.36 trillion, while offshore debt decreased to RM16.67 billion. Statutory bodies' debt also increased to RM113.69 billion from RM110.91 billion, mainly due to new issuances for housing loans and educational loans. Meanwhile, net debt of non-financial public corporations dropped to RM321.86 billion from RM326.27 billion, largely due to scheduled principal repayments by entities such as Tenaga Nasional Bhd, Pengurusan Air SPV Sdn Bhd, and TRX City Sdn Bhd.
Overall, the public sector's reliance on foreign exchange remains within acceptable limits, with 92.2% of the debt denominated in ringgit, demonstrating effective debt composition and currency risk management.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
