(Bloomberg) -- After clearing a key vote in parliament, Malaysia is set to raise the limit on government debt for the second time in a little over a year as it seeks to fund additional pandemic support measures and bolster its economic recovery.
A majority of lawmakers in the lower house voted for increasing the statutory debt ceiling to 65% of gross domestic product until 2023, from 60%. The bill will next head to the senate, controlled by Prime Minister Ismail Sabri Yaakob's coalition, before it's signed into law by the king.
The increase will enable the government to fund 45 billion ringgit ($10.8 billion) in extra spending on economic aid and stimulus packages, according to the bill that was passed on Monday. Malaysia intends to boost its Covid Fund to 110 billion ringgit, from 65 billion ringgit, according to the bill.
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