"In the deficit economy, one can’t avoid from borrowing, but it is important to note on how it is being channelled, ” he said.
Despite the government’s total debt and liabilities being reduced to 75.4 per cent of Gross Domestic Product in 2018 from 79.3 per cent in 2017, direct debt increased to 51.2 per cent of GDP from 50.1 per cent. He said payments related to 1MDB would only increase over time before it starts to taper off after 10 years.
But the PH government is being very open on how it is funding the development projects, which is in the form of loans that have resulted in an increase in its direct debts, he said. A current account surplus means an economy is exporting a greater value of goods and services than its is importing. "We still hope that the trade talks between the United States and China will be a successful one so that we can continue to enjoy sustainable economic growth.”"There are talks of a possible economic downturn next year I don’t think it will affect our three years rehabilitation of restorative programme to put Malaysia back on track by 2021 - fiscally speaking.”