The Pakatan Harapan government led by Dr Mahathir Mohamad removed the unpopular goods and services tax just weeks after a stunning victory in the May 9 general election, and replaced it with a new tax structure that would only bring in half as much revenue as the previous one.

High debt levels are also a concern for the government, which has blamed the previous administration of Najib Razak for bringing the country’s liabilities to around RM1 trillion (US$241.43 billion). The debt includes that of state fund 1MDB, which is the subject of money laundering investigations in several countries.

In a statement, Finance Minister Lim Guan Eng said any additional debt issuance would be gradual and made known to the market through the auction calendar, in line with current practice.

“This will ensure that investors are able to absorb the additional issuances without major adjustments in yields that could increase the borrowing cost of the government,” he said.

The government would also consider selling some of its shares and land, and lease its idle assets and buildings, Lim said.

He said the government wished to avoid over-reliance on any one type of financing.

“The priority is towards finding the lowest financing cost,” he said, adding that timing would be guided by the ability of the financial markets to absorb the fund raising in an orderly manner.