Malaysia’s statutory debt at RM1.295t, or 63.9pc of GDP, still within legal limit, says Auditor General’s report

KUALA LUMPUR, Oct 5 — The Federal Government’s statutory debt-to-gross domestic product (GDP) ratio stood at 63.9 per cent last year, remaining below the statutory debt limit of 65 per cent, according to the Auditor General’s Report (LKAN) 2/2026.

According to the report, the statutory debt stood at RM1.295 trillion, comprising Malaysian Government Securities, Malaysian Government Investment Issues and Malaysian Islamic Treasury Bills.

“The statutory debt-to-GDP ratio has shown an upward trend since 2023, rising from 62 per cent to 63.9 per cent.

“This ratio remains below the statutory debt limit of 65 per cent, as stipulated under the Loans (Local) (Statutory Limit on Borrowing) and Government Funding (Statutory Limit on Moneys Received) Order 2022,” it said. — Bernama

* Editor’s note: LKAN stands for Laporan Ketua Audit Negara (Auditor General’s Report).