Developing nations trapped in debt crisis, Anwar warns at summit

Anwar Ibrahim raised concerns at the gathering about the unsustainable fiscal position facing many developing economies, where interest payments on accumulated debt have begun to overshadow investments in critical social sectors. The prime minister underscored that this imbalance threatens long-term development prospects and the welfare of populations in affected nations.

According to Anwar, the predicament creates a false choice for policymakers who must decide between meeting debt commitments to international creditors and funding basic services such as education and healthcare. He stressed that prolonging this situation would deepen inequality and hinder economic progress across the developing world.

The intervention reflects growing regional concern about the debt burdens accumulated by countries during the pandemic recovery period and in response to successive global economic shocks. Malaysia, as a middle-income nation with its own debt management considerations, has a strategic interest in how the international community addresses this challenge.

Anwar's remarks signal that Southeast Asian nations are seeking coordinated international responses to ease the fiscal pressures on developing economies, potentially including debt relief mechanisms or restructured repayment terms that would free resources for social investment.