Malaysia's federal debt to face large near-term repayments, audit reveals

The Auditor General's Report 2/2026 indicates that a large fraction of Malaysia's federal debt will come due within one to five years, with the remaining obligations spread over longer horizons. Total federal debt reached RM1.32 trillion, up by RM73.16 billion from the previous year. The pace of debt growth decelerated to 5.9% in the latest year, compared with a 10.2% increase in 2022.

The report clarifies that federal debt comprises domestic borrowings, external loans and external assistance, but does not include debts of government agencies or government-owned enterprises. These maturity patterns suggest upcoming fiscal pressures for the federal budget.