Anwar says legacy debts like 1MDB pushed up Malaysia’s debt, cautions that corruption ruins nations

KUALA LUMPUR, November 14 — Prime Minister Datuk Seri Anwar Ibrahim addressed accusations that Malaysia's debts had grown under his tenure as finance minister, attributing the rise to existing obligations from prior administrations, including those associated with 1Malaysia Development Berhad (1MDB). At a gathering for over 200 female trainees at the National Service programme's Camp 515, Anwar dismissed the claim that his economic management had led to increased debt.

He emphasized the government's challenge in meeting the needs of all citizens while operating within constrained financial resources.

Anwar reported a steady decline in the federal budget deficit since he assumed office in 2022, narrowing from approximately RM100 billion to RM76.6 billion in 2025. Despite this reduction, he highlighted that the total debt still rose due to the obligation to pay off previous debts, such as those linked to 1MDB, Felda, and Tabung Haji, which required annual payments of RM980 million, RM10 billion, and RM10 billion, respectively.

Additionally, the government occasionally had to cover other expenses, including those for military purchases.

During the same event, Anwar cautioned that corruption and arrogance can lead to a nation's downfall. He warned against attitudes that view corruption as trivial, remarking that such a mindset would "jahanam" – or destroy – a country.