Malaysia’s US$251 billion debt, millions more looted – and new PM Mahathir Mohamad is taking aim at predecessor Najib Razak

Mahathir said last week that many of the figures recording the country’s financial position may be false

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Malaysian’s new Prime Minister Mahathir Mohamad (2-R) sings the national anthem at the prime minister’s office in Putrajaya. Photo: EPA

Published: 1:38pm, 21 May 2018Updated: 10:02pm, 21 May 2018

Malaysia is saddled with over 1 trillion ringgit (US$251.70 billion) in debt, Prime Minister Mahathir Mohamad said on Monday, blaming the previous government led by former protégé Najib Razak who now faces domestic graft investigations.

Mahathir, 92, led an opposition coalition to a spectacular win over Najib’s previously undefeated ruling alliance in a general election on May 9, having campaigned aggressively over people’s rising living costs and a multibillion-dollar scandal at state fund 1Malaysia Development Berhad (1MDB).

“We find that the country’s finances for example, was abused in a way that now we are facing trouble settling debts that have risen to a trillion ringgit,” Mahathir said when speaking for the first time to staff of the prime minister’s office.

“We have never had to deal with this before. Before we never faced debts higher than 300 billion ringgit, but now it has climbed to 1 trillion ringgit.”

Malaysia's newly-elected Prime Minister Mahathir Mohamad addresses civil servants during his first assembly in Putrajaya. Photo: AFP