KUALA LUMPUR, Sept 8 — Contrary to rumours, Malaysia is not headed for bankruptcy soon even if its debt-to-GDP ratio busts the self-imposed 55 per cent mark, Datuk Abdul Rahman Dahlan said today.

The minister in the Prime Minister's Department sought to allay anxiety over the current debt level of 53.4 per cent as at June 30, saying that the country’s economy has proven to be resilient despite the predictions of naysayers.

"It is illogical that even if Malaysia breaches the 55 per cent Debt-to-GDP level then Malaysia would be "bankrupt" or our economy will be in trouble as alleged by certain quarters.

"If we did not go bankrupt at 103.4 per cent in 1985, then how are we going to be bankrupt at 55 per cent?” he posted in a statement on his Facebook page.

Abdul Rahman played down the rising debt level, saying it was "logical” as the country’s economy is growing, which also increases revenue.

He also gave an assurance that the federal government has no plans to breach its 55 per cent debt limit, and will manage its finances prudently despite the current global economic challenges made more uncertain in the wake of the UK’s exit from the European Union.

He urged Malaysians not to believe unsubstantiated financial information, saying such messages were being spread by economic saboteurs.

"Malaysians and certain political parties should avoid spreading misinformation or engage in scare tactics that will end up damaging both investor and consumer confidence in our economy. This is akin to sabotaging our own economy,” Abdul Rahman said.