Govt’s debt-to-GDP ratio rises to 65.2pc, but statutory debt stays within the limit, says Audit Dept

A view of the Ministry of Finance in Putrajaya. The Federal Government’s statutory debt stood at RM1.295 trillion in 2025, below the 65 per cent legal limit, according to the National Audit Department. — Picture By Raymond Manuel

First Published: Monday, 05 Oct 2026 3:16 PM MYT

KUALA LUMPUR, Oct 5 — The Federal Government’s debt-to-Gross Domestic Product (GDP) ratio increased by 0.7 percentage points to 65.2 per cent in 2025, from 64.5 per cent in 2024, according to the National Audit Department.

In a statement on the Auditor General’s Report (LKAN) 2/2026, the department said the Federal Government’s statutory debt amounted to RM1.295 trillion in 2025, comprising Malaysian Government Securities, Malaysian Government Investment Issues and Malaysian Islamic Treasury Bills.

“The statutory debt-to-GDP ratio has shown an upward trend since 2023, rising from 62 per cent to 63.9 per cent.

“This ratio remains below the statutory debt limit of 65 per cent, as stipulated under the Loans (Local) (Statutory Limit on Borrowing) and Government Funding (Statutory Limit on Moneys Received) Order 2022,” it said. — Bernama

* Editor’s note: LKAN stands for Laporan Ketua Audit Negara, which translates as the Auditor General’s Report.