SUNGAI ASAP (Belaga): Deputy Minister of Finance Datuk Indera Mohd Shahar Abdullah is confident Malaysia will not go bankrupt like Sri Lanka because the country’s economic growth is much stronger.
In rejecting rumours circulating on Malaysian social media, he said that the country still has room to borrow.
In fact, he added, the International Monetary Fund (IMF) has never said that Malaysia is experiencing economic challenges that may lead to bankruptcy, rather, that they are optimistic about Malaysia’s economic growth prospects.
Furthermore, he pointed out that the Malaysian government has always been diligent in meeting its national debt payment responsibilities and has never failed to pay interest or matured loans, demonstrating the country’s solid and sustainable fiscal position.
“If we compare the economic indicators of Malaysia and Sri Lanka, it is clear that our economy is much stronger than that of Sri Lanka.
“So, the possibility of a bankrupt country like Sri Lanka is very slim,” he said at a Pemimpin Bersama Rakyat event at Uma Ukit, here today.
He added that Malaysia’s inflation rate was moderate compared to other countries such as the United States (9.1 per cent), United Kingdom (9.4%), Thailand (7.7%) and Singapore (6.7%).
This is due to the price control measures on selected goods and services, particularly through the provision of fuel and selected food price subsidies as well as electricity rebates for domestic consumers.
“If it wasn’t for the government’s subsidy policy which will reach RM80 billion this year, this inflationary pressure could reach up to 11%,” he said.
