KUALA LUMPUR – The Ministry of Finance has assured that Malaysia’s US$9.5 billion purchase of Boeing aircraft under the second phase of the acquisition plan will not contribute to the country’s national debt levels or fiscal deficit.
Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat that the aircraft procurement forms part of the broader strategy outlined in the 13th Malaysia Plan (13MP), and is being implemented within expected financial parameters.
“This purchase is not financed through government borrowing and will not affect either the debt position or the fiscal deficit,” she clarified.
Lim was responding to Datuk Nik Muhammad Zawawi Salleh (PN–Pasir Puteh), who had questioned the government’s contingency measures to manage debt after committing to the large-scale acquisition from the United States.
In addressing concerns over Malaysia’s broader fiscal position, Lim explained that the rise in government debt in recent years stems mainly from financing the fiscal deficit required for development expenditure (DE).
“This financing will directly increase the government’s debt level as long as the financial position remains in deficit,” she said, while stressing that development spending is also funded through other channels such as tax and non-tax revenues.
She further highlighted that Malaysia continues to comply with statutory borrowing limits. As of end-June 2025, Malaysia Government Securities, Government Investment Issues, and Malaysian Islamic Treasury Bills collectively stood at 62.7 per cent of Gross Domestic Product (GDP)—still below the 65 per cent ceiling under Act 637 and Act 275.
Additionally, offshore borrowings amounted to RM22.8 billion, well within the RM35 billion cap set under Act 403, while Malaysian Treasury Bills of RM2 billion remain far below the RM10 billion threshold under Act 188.
Lim reaffirmed that the government has never borrowed beyond the statutory limits set by federal debt legislation, and remains committed to prudent fiscal management despite ongoing geopolitical and economic uncertainties.
