Repaying RM48bil 1MDB debt last year means people-centric projects missed out, says PM
The payment of RM48bil in debts incurred by 1Malaysia Development Berhad (1MDB) last year could have been better used for other purposes to benefit the people, says Prime Minister Datuk Seri Anwar Ibrahim.
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NewsTranscript
00:00What else is our problem?
00:02Our problem is that the country is in debt.
00:07I know that many of my colleagues, especially those in the banking sector,
00:11are quite bored when they hear the question of debt.
00:14But that is the reality.
00:16We have a high debt,
00:19and the deficit has increased from more than 6.4% in 2020-2021,
00:29to 5.6% in 2022.
00:33And when we look at this assessment,
00:36we say that we cannot maintain such a deficit.
00:42If we look at the macroeconomic framework,
00:46reducing the deficit means no increase in income.
00:50That's a problem.
00:51Or reducing debt, but the income remains at the old level.
00:57That's also not possible.
00:58That's why, when we make a decision,
01:02in 2023,
01:05the deficit will decrease from 5.6% to 5%.
01:11This is a challenging effort.
01:14It's not easy, because the people's expectations are rising.
01:21Especially when the leader is said to be a reformist.
01:29So people say, what is reformism if we don't get the result?
01:32The result is not possible in one or two years.
01:35Because the result is in a state of a rising deficit.
01:42So we have to follow our efforts,
01:47our situation, and our ability,
01:52so as not to burden the people,
01:55especially the poor and the upper class.
01:59Whether they are poor in the city, village, or inland.
02:04So for 2024,
02:08we will reduce the deficit from 5% last year to 4.3%.
02:20Because the country must be managed properly.
02:24And I know this is not something that can be understood,
02:28understood, or supported by the people.
02:33Because the people expect direct compensation from them.
02:37They don't care whether the debt is big or not,
02:40or whether the deficit is rising or not.
02:43So if you want to be popular,
02:45what is my fault? I just take the debt.
02:48I give it.
02:49Another debt.
02:50I give it. It looks popular, but
02:52is this the attitude of a leader who is responsible?
02:56For example, when I say debt,
02:58how much debt do we pay?
03:03Pay the debt for 1MDB,
03:09compared to last year.
03:111MDB debt is Rp48 billion.
03:18Imagine if we can spend Rp48 billion for development,
03:23schools, clinics, universities,
03:27including salary deductions.
03:33This is Rp48 billion.
03:35So can I say,
03:37no, I don't care, this is an old administration.
03:40I don't care, I don't want to pay.
03:42I can't.
03:44So even though I am the Prime Minister now,
03:47I am also tied to some excessive decisions.
03:50That's why when I want to make a decision,
03:52with my colleagues,
03:54I have to think not just now,
03:56but the burden for the administration and the next generation.
04:01So from Rp100 billion last year,
04:05our budget is down to Rp86 billion.
04:09And this needs to be reduced.
04:11If we reduce the way we spend,
04:14then we can't continue with our development agenda.
04:20Universities must be developed.
04:23How many new disciplines,
04:24artificial intelligence and digitalization must be introduced.
04:29Schools must be provided with new facilities.
04:33And sometimes we have to fix toilets last year.
04:39How many school toilets?
04:40Rp8,600.
04:42It's broken.
04:43Imagine, Malaysia,
04:46a great country,
04:48toilets for our children and grandchildren,
04:51can't be used.
04:53Half of it,
04:54that's why sometimes they give it to professionals in the city.
04:57Including chartered accountants.
05:02I want to also share and appreciate
05:06the stark realities that we have to face.
05:09Can we just ignore?
05:11We cannot.
05:12But we require funds.
05:15But we start with the basic necessity,
05:17requirements of our people,
05:19which includes lavatories,
05:21which includes public housing.
05:26So I hope this must be understood.
05:30The important thing is,
05:31do we have to continue to pay debts?
05:33We cannot.
05:34We must reduce the amount of debt.