Kuala Lumpur, Oct. 16 -- Malaysia's national debt has reached an alarming level, with total domestic and external borrowings amounting to 1.3 trillion MYR (310 billion USD) as of June, representing 64.7% of the country's gross domestic product (GDP) - just shy of the statutory debt ceiling of 65%.
Former Minister of Economy Rafizi Ramli said the figures underscored the urgent need for comprehensive reform in debt management, warning that even slight economic disruptions could push the national debt beyond safe levels.
If economic growth slows or global oil and food prices surge, the government could face a real risk of breaching the 65% threshold, he said at the Budget 2026 debate on October 13.
Rafizi noted that the figure excludes gove...