KUALA LUMPUR, Aug 19 — The second phase purchase of Boeing aircraft valued at US$9.5 billion (RM40.1 billion) will not impact Malaysia’s debt nor affect its fiscal deficit, said Deputy Finance Minister Lim Hui Ying.
Lim said the aircraft purchase is contained in the 13th Malaysia Plan (13MP).
“At present, everything is within our expectations,” Lim said during a question-and-answer session in the Dewan Rakyat today.
She was responding to a supplementary question from Datuk Nik Muhammad Zawawi Salleh (PN-Pasir Puteh), who asked about the government’s contingency measures to control the national debt burden after Malaysia committed to buying aircraft from the United States.
In response to Nik Muhammad’s initial question about the government’s justification for allowing the national debt to remain high amid geopolitical uncertainties, Lim stated that the increase in government debt is due to the need to finance the fiscal deficit to cover development expenditures (DE).
“This financing will directly increase the government’s debt level as long as the government’s financial position remains in deficit,” she said.
Lim also clarified that the government does not rely solely on debt to finance DE, which is also funded by various other sources such as tax revenue and non-tax income.
“To date, the government has never borrowed beyond the statutory limits allowed under the relevant federal government debt laws. As of the end of June 2025, Malaysia Government Securities, Government Investment Issues, and Malaysian Islamic Treasury Bills stand at 62.7 per cent, which does not exceed the 65 per cent gross domestic product (GDP) limit set under Act 637 and Act 275,” she said.
Lim added that offshore borrowings amounted to RM22.8 billion and remained below the RM35 billion limit set under Act 403, while Malaysian Treasury Bills, totalling RM2 billion, are within the RM10 billion limit set under Act 188.
