Malaysia recently changed governments. The new finance minister claimed the national debt is actually RM1.087 trillion, and that the previous government had understated the national debt by some RM400 billion:
- The official Federal Government debt is RM686.8bil
- "In addition, the Government is already committed to pay for government guarantees for various entities which are unable to service their debts. This amounts to RM199.1bil."
- "...the Government also must make lease payments for "Public-Private Partnership" (PPP) projects such as construction of schools, roads, hospitals and police stations, which amount to RM201.4bil."
The former finance minister promptly responded by claiming that the new minister is overinflating figures, and that the original RM686.8 billion was according to "universally accepted" defined by the IMF and World Bank.
I don't understand what they're saying very well. Two questions:
- What are the two extra terms mentioned by the new minister?
- Is Malaysia's national debt RM1 trillion or RM686 billion?