Lim Guan Eng: Tap RM2.1t bond market to release RM20b in excess taxes, ensure ang pows for workers

KUALA LUMPUR, Dec 30 — The federal government can tap into the RM2.1 trillion local bond market to source more than RM20 billion for part-payment of outstanding excess tax refunds, says DAP MP for Bagan Lim Guan Eng.

In a statement today, Lim highlighted that excess tax refunds have not been paid to companies for over five years, following the takeover of the PN government in 2020.

The total outstanding balance owed amounts to tens of billions of ringgit.

“The federal government has no moral, ethical or legal right to withhold refunds of excess taxes paid, which belong to Malaysian companies, not the government,” Lim said.

He added that a part-payment of RM20 billion in January 2026 would stimulate the local economy, improve cash flow for Malaysian companies, help bridge liquidity shortfalls, and even allow businesses to pay bonuses or ang pows to employees ahead of the Lunar New Year of the Horse in February 2026.

Lim also called for 10 per cent of government allocations given to Bumiputeras to be extended to non-Bumiputeras, without reducing the original allocation to Bumiputeras.

He noted that non-Bumiputeras currently receive only three per cent of what is allocated to Bumiputeras, despite making up roughly 30 per cent of the population.

Addressing concerns over funding, Lim said raising RM20 billion through the local bond market would constitute just 1 per cent of its total size, a move he described as manageable without negative monetary impact.

He added that Malaysia’s overall external debt remains under control, standing at RM1.4 trillion or 69.4 per cent of GDP at the end of the third quarter of 2025 — lower than the 74.3 per cent peak at the end of 2016.

Lim also noted that the federal government’s external debt remains low, at under three per cent of total foreign currency-denominated debt, including RM7.2 billion in samurai bonds issued in 2019. He said Malaysia made nearly RM600 million profit from those bonds, even after interest payments, due to the 30 per cent depreciation of the Japanese yen against the ringgit from 2019 to 2025.

“Raising more than RM20 billion from the RM2.1 trillion local bond market can be completed within a month, in time for the Chinese New Year in February 2026,” Lim said.