Debt servicing bill hits RM57.3b as Malaysia’s federal debt climbs to RM1.38 trillion - MOF
THE federal government faces a rising debt-servicing bill of RM57.3 billion this year as its outstanding debt climbs to RM1.38 trillion, highlighting the growing cost of managing public borrowing even as the government pursues fiscal consolidation. T...
Malaysia's federal government is facing a rising debt-servicing bill of RM57.3 billion for the year, as its outstanding debt reaches RM1.38 trillion, according to the Ministry of Finance's Fiscal Outlook report. This debt exceeds the government's 60% medium-term target, which is seen as a concern. Debt-servicing costs are projected to rise by 6.7% to RM57.3 billion in 2026, accounting for 15.8% of total federal revenue, a slight decrease from the 16% recorded in 2025.
Domestic debt, which makes up 98.8% of the outstanding federal debt, remains the primary source of financing, providing a stable foundation for the government with institutional investors holding a significant portion of the debt. Despite the growing debt burden, the government remains committed to meeting all debt obligations on schedule.
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