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Why statutory debt limit of 60% has not been breached

THERE has been some confusion as to what Malaysia’s debt-to-GDP ratio should be, specifically whether the 60% statutory debt limit has been breached. Under normal circumstances, the country’s debt-to-GDP ratio should be at 62.2% exceeding the 60% debt ceiling that was raised temporarily from 55% from last August to end-2022 to bolster its fiscal position to counter the impact of the Covid-19 pandemic.

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