Govt raises RM150.6b, 72.7pc of 2026 gross borrowing requirements in first eight months

KUALA LUMPUR, Oct 9 — The government has raised RM150.6 billion, or 72.7 per cent of the annual gross borrowing requirements, in the first eight months of 2026, said the Ministry of Finance (MoF).

The ministry said of this, RM130 billion was raised through Malaysian Government Securities (MGS) and Malaysian Government Investment Issues (MGII) issuances, while RM14.5 billion through issuances of Malaysian Treasury Bills (MTB) and Malaysian Islamic Treasury Bills (MITB) and the balance through the offshore issuance.

“The proceeds were primarily utilised to finance RM71 billion in principal redemptions, with the remaining RM79.6 billion used for deficit financing and partial funding of upcoming maturities,” it said in its Fiscal Outlook and Federal Government Revenue Estimates 2027 released today.

The total gross borrowings for 2026 are projected to record RM207.1 billion, or 9.5 per cent of gross domestic product (GDP), from RM181.7 billion or nine per cent of GDP in 2025, driven mainly by higher refinancing needs of RM128.5 billion.

MoF said the federal government’s borrowing continues to serve two main purposes which are financing the fiscal deficit and refinancing maturing debt.

“The issuance strategy will continue to have a well-spread maturity profile while optimising cost of funding,” it added. — Bernama