Speaking at the finance ministry’s monthly assembly in Putrajaya, Anwar said continuous efforts had been made since 2022 to bring down the country’s fiscal deficit from 5.5% to the latest projection of 3.8% this year.

“Some people ask why we are so focused on reducing it. They say we should just give more to the people. But without this effort, there will be no (investor) confidence,” he said.

Anwar, who is also finance minister, added that investor confidence would translate to investments, which could help raise the national revenue, provide job opportunities, and contribute to the nation’s overall development.

Putrajaya brought the deficit down from 5.5% in 2022 to 5% in 2023, and 4.1% last year.

The Treasury had said this would slow the growth of the national debt with a drop in new government borrowings each year, from nearly RM100 billion in 2022 to RM92.6 billion in 2023, and around RM77 billion last year.

Anwar also dismissed claims that the government’s debt reduction efforts had compromised public welfare, saying the approach should be seen as a long-term strategy.

“Since we took over, the debt has been reduced by RM20 billion.

“It’s like someone inheriting a company after his father passes away. The company owes RM50,000. The son can’t be expected to settle the debt in a year – it has to be done in stages,” he said.