Najib, who is also Finance Minister, said in a written reply to parliament Thursday, that Malaysia was still classified as a nation with manageable debt, and said measures were in place to control spending with 2020 being set as the year where the country may start seeing its credit improving.

He said fiscal consolidation measures would be continued to reduce the country’s deficit levels, stage by stage, by prioritising expenditure cuts and only taking loans for national development projects.

“Adherence to fiscal discipline and good debt management will continue to be emphasised to ensure we remain strong and able to cushion any crisis,” he said.

“We will ensure that administrative expenditures will be footed by profits from national products, which will also be used to pay for development costs.

“Prudent spending will be emphasised to prevent wastage. Government borrowing will solely be to finance development and high-impact projects that will contribute to the country and the people in the long term,” he said.

Najib added that the government would continue its policy of giving out domestic loans that does not contribute to inflation, taking into account the high liquidity and lower borrowing costs.

Najib had to revise Budget 2016 in January, to optimise the country’s developmental and operational expenditures in the face of slower economic growth.