Malaysia’s Economy Minister Debunks Claims of IMF Loan

Economy Minister Rafizi Ramli has refuted opposition claims that Malaysia is in need of a loan from the International Monetary Fund (IMF), asserting that seeking assistance from the IMF is a measure of last resort for nations facing imminent bankruptcy.

Speaking at a recent event in Nibong Tebal, Rafizi clarified that approaching the IMF for a loan is a grave decision taken only after exhausting all other options and finding it impossible to repay existing debts. He stressed the seriousness of the matter, noting that the IMF is a lender of last resort, and not an option to be taken lightly.

In an effort to debunk the idea of Malaysia’s need for an IMF loan, Rafizi posed probing questions, asking, “Are we on the brink of bankruptcy? Are we incapable of settling our loans?” He made it clear that Malaysia is not in a position that warrants seeking financial support from the IMF.

Rafizi critically addressed the opposition’s lack of understanding of financial policies and accused them of diverting attention to trivial matters. He underscored the importance of informed discussions on national economic matters rather than engaging in thoughtless rhetoric.

The minister’s remarks were in response to comments made by Perikatan Nasional chairman Tan Sri Muhyiddin Yassin, who had expressed concerns about the government’s reduction of subsidies and its potential connection to seeking an IMF loan. Muhyiddin’s remarks were made during a campaign event for the upcoming Sungai Bakap by-election, where he sought to gain clarity on the government’s policy changes.

In the run-up to the by-election, both political factions are actively engaging in discourse over various issues, with the opposition focusing on Malaysia’s financial policies and the potential actions of the government.

The Sungai Bakap by-election, set to take place on July 6, has positioned Pakatan Harapan’s Dr. Joohari Ariffin against Perikatan Nasional’s Abidin Ismail in a closely contested battle for the parliamentary seat.

Rafizi’s authoritative stance and informed response to the opposition’s claims serve as a reminder of the government’s commitment to ensuring the financial stability and sovereignty of Malaysia. His clarification sheds light on the prudent approach taken in navigating the country’s economic challenges, reaffirming the nation’s resilience in managing its financial affairs without the need for external intervention.