Kuala lumpur: The government has successfully slowed the growth of debt service charges (DSC) to 6.4 percent in 2025, down from 12.3 percent in 2023 and 9 percent in 2024, through fiscal reform measures and prudent debt management.

According to BERNAMA News Agency, Deputy Finance Minister Liew Chin Tong announced that the government has effectively reduced new borrowings to RM92 billion in 2023, further decreasing to RM77 billion in 2024, with a projection of around RM75 billion in 2025. This is a significant reduction from RM100 billion in 2021 and 2022, with efforts to continue reducing it in 2026. Liew addressed this matter in response to a parliamentary question regarding the government's strategy to manage debt service payments, which are anticipated to constitute 16.3 percent of total government revenue in 2025.

Liew emphasized that the government is implementing several fiscal strategies, including gradual fiscal consolidation. He mentioned that the government is expanding the revenue base and ensuring sustainable revenue collection by extending the Sales and Services Tax (SST) and implementing e-invoicing. Additionally, measures to optimize public expenditure include targeted subsidies for diesel and RON95, and the rationalization of statutory bodies.

He further stated that government borrowing is used exclusively to fund development expenditure projects and programs that provide long-term returns to the country and its citizens. The government has also set a financial guarantee exposure limit at 25 percent of the gross domestic product to maintain control over government exposure based on current financial and economic capacities.

Liew concluded by highlighting that responsible fiscal management, backed by pragmatic economic management, is crucial to driving economic activities, encouraging private investments, and fostering sustainable economic growth.