Debt hits 65.5% of GDP; buffer still intact
Government total current liabilities rose to RM1,277.3b in 1Q25 (4Q24: RM1,247.6b), a record high
- On YoY basis, debt growth moderated to 5.6% (4Q24: 6.4%), the weakest since 2Q17 (4.5%).
- However, QoQ growth picked up to 2.4% QoQ (4Q24: 0.7%), a four-quarter high, in line with seasonal borrowing trend at the start of the year.
- Based on our calculation, the government debt to GDP ratio in 1Q25 expanded to 65.5% (2024: 64.6%), higher than government’s calculation of 62.6%.
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