Malaysia's Dept Level In Safe Zone - Minister

KUALA LUMPUR, March 26 (Bernama) - Malaysia's debt level is still in the safe zone with a deficit of less than four per cent, the Dewan Rakyat (lower house of Parliament) was told, Thursday. Minister in the Prime Minister's Department (JPM), Abdul Wahid Omar said Malaysia managed to reduce the deficit from 6.9 percent in 2009 to 3.5 percent in 2014. "This means that Malaysia has entered the safe zone. In terms of financial management, we are getting better," he said when winding up debate (JPM) on the Yang di-Pertuan Agong's opening address, here Thursday. A country's financial position is deemed to be in the safe zone if it has debt of 70 per cent, including contingent liabilities and deficit of less than four per cent. On the other hand, a country's financial position is deemed critical if it has debt of over 100 per cent of Gross Domestic Product (GDP) and deficit of over four per cent. Replying to a question from Nga Kor Ming (DAP-Taiping), Abdul Wahid said the government would ensure the country's debt remain below 55 per cent of GDP. He was confident Malaysia would achieve developed nation status with high income by 2020 despite the challenging economic conditions. "This will be achieved via the implementation of projects and programmes under the Tenth Malaysia Plan (2011-2015) and core strategies including 'game changer' under the Eleventh Malaysia Plan (2016-2020). "Among others, the focus will be on innovation and productivity to improve competitiveness and ensure sustainable growth." Abdul Wahid said besides measuring the status of developed countries in terms of economic performance, human capital development is also emphasised. "The aim is to create a society with good religious and spiritual education, good morals, ethical, liberal, tolerant, scientific, progressive and caring." --BERNAMA