The 2022 Auditor-General’s Report, which was released today, revealed that Malaysia’s national debt in 2022 increased to RM1.08 trillion, a 10.2% hike (RM99.77 billion) compared to 2021’s RM979.81 billion.

Total liabilities have also increased by 7.2% (RM94.11 billion) to RM1.4 trillion in 2022 from RM1.31 trillion in 2021.

However, Wan Suraya stressed that the country was in a better financial position in 2022 than in 2021 due to increased revenue and gross domestic product (GDP).

“The country’s finances are in a better position than 2021 because of the work done by the relevant financial authorities,” she said at a press conference in Parliament.

“We have also seen an increase in revenue and improvements in GDP, and GDP-to-debt ratio.”

The report said that the country recorded a RM60.6 billion increase in revenue to RM294.36 billion last year, a 25.9% improvement from 2021.

Apart from the increase in GDP from RM1.55 trillion in 2021 to RM1.79 trillion in 2022, Wan Suraya also noted that the country’s debt-to-GDP ratio in 2022 stood at 60.3%, an improvement from the 63.3% in 2021.

The national statutory debt ceiling is 65%.

Meanwhile, Wan Suraya said among others, the report recommended strengthening public financial discipline for effective operational spending, enhancing sustainable revenue generation, and monitoring commitments towards repayment of matured debts.

She also said this was important to ensure that the surplus of net operating balances was sufficient to finance development expenditures and to lessen dependency on new borrowings.

Wan Suraya added that it was important that the country’s development fund was used to finance physical and non-physical projects which were included under the five-year Malaysia Plan, adding that there had to be better monitoring of grants allocated to companies for loan repayments.