Manageable Malaysia's debt to a high-income economy

After all, Malaysia is not a bankrupt nation. Despite the country's RMB 1 trillion debt, the World Bank says Malaysia's debt is still under control and the country will not plunge into crisis, as 97.7 percent of the country's debt is in ringgit terms.

note that the vast majority of the country's debt, approximately 97.7%, is denominated in ringgits and therefore very low risk.

"In addition, 70% of this debt is medium-term and matures in the next three years." According to the World Bank's chief economist on macroeconomics, trade and investment , Richard Record, while urging the new government Pakatan Harapan (PH) to manage the national debt with caution to minimize the additional risks for

"We are encouraged by the fact that the government is determined to maintain its deficit target 2.8% by the end of the year.

"The government rightly considers not only revenues and expenditures In addition, following significant policy changes after the GE14 in May, the World Bank maintains Malaysia's economic growth forecast at 5.4 percent, strengthened by strong macroeconomic fundamentals, such as the increase in employment and wages as well as strong consumer sentiment.

It also forecasts stronger household growth According to Richard, during the course of In the same year, household spending, which is the main driver of Malaysia's economic growth, is expected to improve thanks to new measures, including the temporary suspension of the consumption tax.

The main risks are the disordered adjustments to global financial market conditions, as well as increased protectionist tendencies and trade tensions in major economies. 9659005] "For now, it is important for us to monitor trade tensions. However, Malaysia has a diversified export base in a large number of different products, goods and services and in different markets. Thus, we are always optimistic about the resolution to be found, "he said.

Richard revealed that export demand, especially for electrical and electronic products, should continue and contribute to the positive growth of the Malaysian economy. According to the latest World Bank forecasts, the Country Director for Brunei, Malaysia, the Philippines and Thailand, Dr. Mara Warwick believes that Malaysia is becoming a high-income economy

. ) is the importance of looking at the quality of growth – looking at the overall growth ahead and how every Malaysian can benefit from the economic success that the country has.

"We see that Malaysia has a very strong economy, and is becoming a high-income economy," she said, stressing that reforms are needed to ensure the distribution of economic gains among all regions and entire populations, including The report also stresses that more efforts need to be made to improve the quality of the connection and encourage competition in the market.

Following the launch of the report, the Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali pledged that progressive socio-economic policies would be introduced to complement ongoing institutional reforms after a review of the Eleventh Malaysian Plan

Last month, in an interview with Financial Times Azmin pointed out "

The former Selangor Menteri Besar stressed:" I go from the richest state of Malaysia to a bankrupt nation, so it's a major challenge for me to chart new policies.

-mD