Anwar, who is also the finance minister, said the irresponsible practice of incurring unnecessary debt will be discontinued.

“We (in the Cabinet) say no (to incurring) more debt. Who will bear it? It is already a burden on us and our children,” he said in a speech at a Negeri Sembilan rural and regional development ministry event today.

Anwar said the country had been incurring debt for many decades, starting with the administration under second prime minister Abdul Razak Hussein in the 1970s. However, the debts were incurred to develop the country.

“The purpose of those debts was to open up lands, establish the Federal Land Development Authority (Felda) and develop rural areas,” he said.

“They were not debts for megaprojects with excessive costs and high commissions that would burden the economy.”

Anwar added that Felda, the Rubber Industry Smallholders Development Authority (Risda) or Mara would not have existed today if Razak did not assume such debt at that time, as these organisations were established using loans from the World Bank.

In 1971, Razak introduced the New Economic Policy, which saw the inception of several government agencies such as Felda, Risda and Mara to uplift the poor and rural Bumiputeras.

In January, Anwar said the national debt had reached RM1.5 trillion and required immediate action to address the issue as the figure was already more than 80% of the country’s gross domestic product.