Is the Malaysian government increasingly short of funds to cover national expenses?
The question that was once hotly debated is now back on the lips of the people after two major issues involving the people stole the attention and invited various reactions.
Through the Malaysia Gazette portal on August 7, former Prime Minister, Tan Sri Muhyiddin Yassin, issued a statement claiming that the move to limit EPF withdrawals as announced by Prime Minister, Datuk Seri Anwar Ibrahim during the tabling of the 13th Malaysia Plan (13MP) illustrates that the government is increasingly dependent on "the people's pockets" to cover national expenses.
He warned that the national debt is expected to reach RM2 trillion if the government continues to spend heavily based on the RM430 billion allocation for the 13MP, while much of the country's revenue is spent on operating expenses.
Speaking at a debate session in Parliament, Muhyiddin explained that the national debt had reached RM1.5 trillion with contingent liabilities exceeding RM384 billion, thus raising concerns about the government's ability to repay the debt including the risk of national assets being pledged or sold to outside parties.
The issue of this fiscal position has become increasingly heated when there has been a polemic regarding the exemption from repayment of National Higher Education Fund Corporation (PTPTN) loans for excellent graduates.
Previously, it was widely known that first-class bachelor's degree graduates were eligible to apply for a full exemption from PTPTN loans, causing many graduates to work hard to achieve this advantage.
However, since the end of last year, the official application portal has been closed for 'maintenance' reasons, causing excellent graduates to still be instructed to repay the loan in full without any space to submit an application. This situation has sparked speculation that the privilege may have ended.
TikTok platform Fajar Baru MY's revelations also reinforced these concerns when it revealed that the exemption policy actually depends on the financial position of the government and PTPTN, raising questions about whether the promise has been postponed or cancelled.
Although there has been no official explanation so far, financial analysts believe that both issues such as the monthly EPF pension and the uncertainty of the PTPTN exemption have given a clear signal that the government is facing an increasingly pressing fiscal challenge.
