This was also 50.8% of GDP, an important figure because the rule is that federal debt should not exceed 55% of GDP. However, if a broader view is taken on what constitutes government debt, the overall national debt situation is much more serious. If this is added to the RM687bil of direct debt, the total federal government debt was RM925bil as at Dec 31, 2017. Latest data from Bank Negara show the direct federal government debt rose to RM705bil at end-March 2018, so the latest publicly-known figure for federal debt (direct and guaranteed) is at least RM943bil (without counting the increase since December of government-guaranteed debt). However, as shown in the 1MDB case, government-guaranteed debt can also lead to large federal debt servicing.

Source: The Star May 26, 2018 01:41 UTC