Federal government debt rose by RM58.1 billion to RM1.37 trillion as at end-June 2026 from RM1.32 trillion in 2025.PETALING JAYA: The government is committed to slowing the pace of its borrowings in 2027 as it seeks to keep the growing federal government debt in check.
The focus next year will be “containing debt accumulation and rebuilding fiscal buffers” with priority given to controlling borrowing costs and mitigating refinancing risks, the ministry of finance (MoF) said.
“This will ensure borrowing remains affordable, risks are well managed and fiscal space is progressively rebuilt, while directing public resources towards productive and high-impact investments,” the MoF said in its 2027 Fiscal Outlook and Federal Government Revenue Estimates report.
