Rafizi, who is also PKR deputy president, said there is no question of the country needing an IMF loan because only countries on the verge of bankruptcy would receive such financial assistance.

“You cannot go to IMF if you can pay your debts. Is Malaysia going bankrupt? Do we not have money to pay our debts?

“Hence, there is no question of borrowing from the IMF. It would be crazy by any country (not facing bankruptcy) and even the IMF would say you are crazy to ask for a loan.

“You cannot borrow from IMF if you still have money. Only countries on the brink of bankruptcy can go to the IMF,” he said in a speech at a Pakatan Harapan (PH) rally in conjunction with the Sungai Bakap state by-election in Taman Tasek Indah, Simpang Ampat last night.

He was responding to a question posed by Perikatan Nasional (PN) chairman Muhyiddin Yassin during a PN ceramah in Sungai Bakap on Friday, who asked whether the implementation of targeted diesel subsidies was related to an IMF loan.

The Sungai Bakap by-election on July 6 will see a straight fight between PH’s Joohari Ariffin, 60, a former lecturer at Institut Aminuddin Baki in Kedah, and PN’s Abidin Ismail, 56, a logistics executive.