US national debt hits record $37 trillion amid mounting fiscal concerns

Photo taken on March 17, 2020 shows U.S. dollar banknotes in Washington, DC, the United States. Photo:XinhuaThe US government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers, the AP reported. The $37 trillion update is found in the latest Treasury Department report issued on Tuesday, which logs the nation's daily finances, according to the AP report.

Experts said that as the debt scale grows larger, future interest payment costs will continue to rise, posing risks to fiscal sustainability, while global investors may grow wary of US Treasury bonds amid credit downgrades and uncertainty.

The $37 trillion debt milestone comes less than eight months after the nation hit the $36 trillion threshold for the first time in late November 2024, and a little over one year after the $35 trillion mark was reached in late July 2024, Fox Business reported.

The $37 trillion debt amounts to about $280,000 per household or $108,000 per person, according to the Peter G. Peterson Foundation.
 
The national debt soaring past $37 trillion sends yet another clear message about America's unsustainable fiscal path, Chair and CEO of the Peter G. Peterson Foundation Michael Peterson said in a statement on its website.

"Our growing debt slowly damages our economy and the prospects of the next generation. As the government borrows trillion after trillion, it puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing," Peterson said.
 
The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services, according to the AP.
 
The Joint Economic Committee estimates at the current average daily rate of growth, an increase of another trillion dollars in the debt would be reached in approximately 173 days, according to the AP.

Peterson warned that "As our debt continues to rise, at some point the financial markets will lose confidence in our ability to overcome the politics to solve this problem."
 
To repay maturing debt, the US government has been issuing new debts to repay old ones, leading to the continuous expansion of the overall debt load. As the debt scale grows larger, it means that the future interest payment costs will continue to rise, posing risks to fiscal sustainability, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Wednesday.

If maturing debts cannot be repaid, US debt will become unsustainable, and its credit ratings may be downgraded, creating significant risks for global investors, Zhou added.

The expansion of the US government's debt scale has brought more uncertain risks to investments in US Treasury bonds, making global investors more cautious, Zhou said.

"Factors such as rating agencies' changes in sovereign credit ratings and sharp swings in US tariff policies at the real-economy level have added to this uncertainty," Zhou added.

Yang Changjiang, a professor at Fudan University, told the Global Times on Wednesday that the expanding US government debt has also brought greater uncertainty to the global financial market and the stable operation of the international monetary system.

In May, Moody's downgraded the US sovereign credit rating. It is expected that US large-scale fiscal deficits will further increase the burden of government debt and interest payments, and the fiscal situation is likely to deteriorate, Yang said.

Moody's Ratings in May cut the US' sovereign credit rating by one notch to Aa1 from Aaa.

"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings. 

The US fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns, according to the credit rating agency.

The downgrade means the US has lost its last triple-A credit rating from a major ratings firm, following cuts by Fitch Ratings in 2023 and S&P Global Ratings in 2011, according to Xinhua.Related:

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Third phase of payouts begins today

  

Star-studded screening: Anwar (centre) attending the ‘Taj Mahal’ preview, greeted by Akbar (right) and Zulfikar (left). — LOW BOON TAT/The Star

PUTRAJAYA: The government will begin disbursing payments for the Phase Three Rahmah Cash Contribution (STR) starting today, allocating RM2bil to ease the cost of living for low-income households under the government’s initiative.

Prime Minister Datuk Seri Anwar Ibrahim announced that 8.6 million recipients will receive up to RM650 each through STR Phase Three, an increase of 300,000 recipients compared to the 8.3 million beneficiaries in Phase One last January.

The rise in recipients reflects the government’s decision to open new applications and appeals throughout the year to ensure aid reaches all eligible individuals.

“The year-round application and appeal process demonstrates the Madani government’s commitment to its responsibility in improving the welfare of the majority, leaving no one behind in benefitting from the nation’s wealth.

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“More than just cash assistance, STR empowers recipients to achieve financial independence, helping us realise the equality envisioned in the Madani Economy,” he said in a statement yesterday, Bernama reported.

Anwar, who is the Finance Minister, said that the Phase Three payments will be made to existing and newly registered recipients in the STR database, either through direct bank account credits or cash disbursements via Bank Simpanan Nasio­nal, in stages according to their eligibility categories.

The Finance Ministry said applicants whose names are not found in the STR database must submit an application to allow verification of their eligibility for the aid.

Frequently Asked Questions and eligibility status checks are available on the official STR portal at https://bantuantunai.hasil.gov.my.

Meanwhile, Anwar attended a special preview of the Bollywood film Taj Mahal: An Eternal Love Story, during which he met the film’s director and producer, Akbar Khan, his long-time friend.

The PM spent about 30 minutes watching the epic film, which tells the timeless love story of Mughal Emperor Shah Jahan and his wife, Mumtaz Mahal, leading to the construction of the iconic Taj Mahal monument in Agra, India.

The large-scale production features original filming locations in India and cinematography that highlights the beauty of Mughal architecture, with a sparkling cast of Bollywood stars that included Kabir Bedi, Zulfikar Sayed, Manisha Koirala, Arbaaz Khan and Sonya Jehan.

Released in 2005, Taj Mahal: An Eternal Love Story was once considered among the most expensive Bollywood productions of its time and was marketed as a project showcasing India’s rich history and architecture to the world.

The screening at GSC, IOI Mall in Putrajaya, was also attended by Indian High Commissioner to Malaysia B.N. Reddy.

Rethinking housing maintenance charges: KPKT’s pay-per-use proposal

 Striking the right balance to make housing affordable amid rising costs

By Sulaiman Saheh 

The Ministry of Housing and Local Government (KPKT) has recently unveiled a proposal to introduce a pay-per-use model for maintenance fees in future affordable housing developments. Spearheaded by Minister Nga Kor Ming, the initiative aims to reduce the financial burden on residents by shifting from fixed monthly maintenance charges to a usage-based maintenance fee system. This is a significant departure from the traditional strata living model and has sparked concerns about its potential benefits weighing against its drawbacks. The proposal warrants further studies to identify the specific contexts and the actual needs between various target markets, with a keen eye to weigh its risks and mitigation measures before its widespread implementation.

The pay-per-use model is a key component of KPKT’s broader Reformasi Perumahan agenda, which seeks to modernise Malaysia's housing sector. The ministry's intentions are centred on promoting financial equity, encouraging responsible use of shared facilities and improving affordability, particularly for first-time homebuyers in the B40 and M40 income groups. By tying costs directly to usage, the model intends to ensure that residents who rarely utilise amenities like swimming pools or gyms are not subsidising those who use them frequently. According to the Minister of Housing, this approach is also aligned with the Malaysia MADANI and UN-Habitat goals of promoting sustainable urban development, as the tracking of usage can lead to more mindful consumption of resources and a reduction in wastage. The pilot project for the concept will be implemented for the Rumah Bakat Madani project in Penang by SkyWorld Pearlmont. It features a pay-per-use clubhouse with various recreational facilities like an infinity swimming pool, pickleball and badminton courts, a children’s playground and gyms that are accessible via tracked access cards.

Positive feedback

Arguments in favour of the proposal highlight its potential for cost efficiency and transparency. Residents who do not use shared amenities would see a direct reduction in their monthly maintenance charge expenses, which could make home-occupation and ownership more accessible. The use of digital access cards provides clear, auditable records of facility usage, which could improve trust and accountability in property management. Furthermore, the model offers developers a degree of customisation, allowing for tiered access or optional packages that cater to different resident demographics. There are some who are looking at the concept’s adaptability for various types of stratified buildings, from affordable housing to commercial properties.

Not without critics

However, the proposal is not without its critics. A major concern is the potential for community fragmentation that could jeopardise the spirit of communal living. Shared spaces are traditionally seen as crucial for fostering social cohesion and interaction among residents. Monetising access to these areas may discourage their use and, in the long run, weaken the sense of community. Another significant challenge is operational complexity. Implementing and managing robust access card systems, billing platforms and usage audits would add a layer of administrative overhead that could be costly and open to disputes among residents. Joint Management Bodies (JMBs), Management Corporations (MCs) and property managers need to address this added layer of complexity by ensuring transparency, fairness and consistent maintenance across both open-access and paid facilities. Overcoming such challenges lies in maintaining clear communication with residents regarding the pricing structures, usage policies and access rights to avoid misunderstandings or perceptions of inequity. Managers must also ensure that paid-for amenities remain in excellent condition to justify the additional cost while simultaneously upholding the cleanliness and functionality of common areas that are freely accessible to all. This dual responsibility can strain operational resources and require more sophisticated tracking, billing and maintenance systems. Moreover, balancing the expectations of paying users with those of non-paying residents - especially in shared environments - demands careful policy design and proactive community engagement to prevent division or dissatisfaction.

There are also valid equity concerns, as families with children or elderly residents may rely more heavily on shared facilities like playgrounds and community halls, potentially leading to higher costs for those who need these amenities most. Critics also fear the risk of underfunding for essential, non-usage-based maintenance, such as lift upkeep, security and waste disposal, which could suffer if the revenue from pay-per-use facilities is insufficient. This is even if there were to be a multi-tier maintenance charge regime with a differentiation between core facilities and services like lifts and open-access basic communal facilities and optional-access facilities like function halls, badminton courts and gymnasium. 

Challenges to overcome

While the technological aspects of the model are feasible, successful implementation hinges on a number of factors. A robust infrastructure for tracking and billing is essential, as is a clear governance framework that defines usage and fee calculation. Legal clarity is also paramount, as the model may necessitate amendments to existing laws that relate to strata management to accommodate variable charges and modes of billing. While the pay-per-use model could potentially address concerns about fairness and affordability, particularly for residents who do not utilise all amenities, it would require amendments to the Strata Management Act 2013 (SMA) or other relevant legislation. At present, Joint Management Bodies (JMBs) and Management Corporations (MCs) are legally obligated to collect maintenance fees based on share units, which are assigned to each property. This means a fixed monthly charge is applied to all owners, regardless of their usage of shared facilities. As such, the existing laws would have to be amended.

The long-term risks are also a major consideration, especially if the proposed model results in a lower collection of funds due to a significant portion of owners or residents opting to reduce their usage of these optional access-based facilities. Underfunding could lead to a decline in the quality of facilities and with time, the cost for repairs can snowball, hence forcing JMBs/MCs to re-prioritise their maintenance budget. Consequently, the decline in quality of facilities will risk a decrease in property values – this would threaten property owners’ asset preservation and long-term financial well-being. Arguably, the pay-per-use fees could be inflated to compensate for this or even the opening of such facilities to non-resident visitors. The downside to this is that we could see wealthier residents start monopolising premium amenities while lower-income residents are priced out or security erosion due to re-aligned policy changes to open access for public use. Indirectly, it has relinquished the exclusivity of use amongst residents – unless it is at the onset, during the purchase consideration, buyers are made aware of such provisions and policies. Either way, this would further erode the inclusive spirit of community living, hence risking a socioeconomic divide.

In conclusion, KPKT’s pay-per-use proposal represents a progressive and innovative attempt to address the challenges of urban living and affordability in Malaysia. It promises greater financial flexibility and transparency but also raises serious questions about equitability, community cohesion and long-term sustainability. Before the model is finalised and tabled for implementation, it is crucial to conduct a thorough evaluation of the concept, engage in extensive dialogue with all stakeholders and explore hybrid models with transparency to homebuyers before their decision to purchase. A comprehensive engagement and proper planning are needed with the long-term effectiveness and implications in check. The concept may not be a one-size-fits-all. It requires a multi-faceted consideration from the end-user needs profiling, built environment and layout design involving potentially separated-but-interlinked plots planning and ultimately the long-term management for a harmonious community living and the sustenance of the property’s value as a place of residence and investment. A robust regulatory framework and comprehensive public education campaigns will also be vital to ensure that this groundbreaking initiative strikes the right balance between financial sustainability and social equity, paving the way for a new era of urban living in Malaysia.

Sulaiman Akhmady Mohd Saheh is the director of research and consultancy services at Rahim & Co International.

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Penang to roll out second phase of iSejahtera payments from Aug,2025

 

GEORGE TOWN: The Penang government will proceed with the second phase of iSejahtera payments for this year via electronic funds transfer to 9,405 recipients from Wednesday (Aug 6).

State social development, welfare and non-Islamic affairs xommittee chairman Lim Siew Khim (pic) said the disbursement, amounting to RM1,721,300, reflects a continued commitment to the people’s welfare.

She said Phase 2/2025 payments will only be made to new applicants who registered before June 30 each year, while applications received after that date will be processed for Phase 1/2026.

"For Phase 2/2025, the breakdown and number of recipients are as follows: the senior citizen appreciation schene covers 7,187 recipients totalling RM1,437,400; single mother assistance is for 317 recipients, amounting to RM317,000;

"The golden housewife appreciation scheme involves 1,280 recipients totalling RM1,280,000; and aid for persons with disabilities will be given to 621 recipients amounting to RM124,200,” she said in a statement on Tuesday (Aug 5).

Lim said the state government has disbursed RM53.83mil to 285,816 recipients across various categories under Phase 1 and Phase 2 from January to July.

This included RM41,987,600 for the senior citizen appreciation scheme to 209,938 recipients, and RM1,064,400 for single mother assistance to 10,644 recipients.

"Other categories comprise the golden housewife appreciation scheme with RM4,423,100 for 44,231 recipients; RM3,121,600 for 15,608 persons with disabilities; the Anak Emas one-off payment of RM540,200 to 2,700 recipients; and the one-off death benefit contribution totalling RM2,695,000 for 2,695 recipients,” she added.

She urged all applicants to promptly update their bank account details to ensure smooth disbursement for Phase 1/2026.

Further information on the iSejahtera programme can be obtained by contacting the Kemara Unit at 04-650 5699 / 5700, visiting the iSejahtera office on Level 44, Komtar, during working hours from 9am to 5pm, or registering online via the official portal. – Bernama

How goats changed his life

Breeding success: Lee (centre) with some of his animals at the Wild Run last year. Lee’s farms boast a range of activities – goat, deer and fruit farming as well as vermicomposting, fish breeding and cold storage facilities.

“Farming is about resilience. Yes, we had losses, but with some government assistance and a lot of hard work, we bounced back.” Jason Lee Nyuk Soon

KOTA KINABALU: What began as an “accidental” purchase at a local market has blossomed into one of Sabah’s most inspiring agricultural success stories.

Jason Lee Nyuk Soon, a trained accountant, never planned to become a breeder. He stumbled into livestock farming purely by chance.

More than a decade later, he is being celebrated across the nation after clinching the prestigious Anugerah Perdana and Anugerah Penternak Jaya, winning RM60,000 and RM20,000, respectively.

He received both awards from Prime Minister Datuk Seri Anwar Ibrahim during the National Farmers, Breeders and Fisher­men’s Day 2025 celebrations here on Sunday.

Sharing his journey, Lee said he was visiting a weekly tamu (traditional marketplace) in Kota Belud in 2014, merely to see what was available.

He came across an elderly couple trying to sell a pair of goats.

“They said they needed money urgently, so I bought the animals. The next day, the couple called and sold me another pair,” said the 49-year-old.

At the time, Lee kept the goats as a hobby behind his parents’ house in Kg Tombovo, Putatan, using simple fencing and infrastructure.

But as the herd grew, so did his interest and commitment.

He built more shelters and began learning breeding techniques from scratch.

His hard work paid off by the third year, when he recovered his initial RM500,000 investment.

Encouraged by the results, he expanded operations to nearby Kg Duvanson, where he now runs a larger facility complete with staff quarters, a feed processing plant and training rooms.

One of Lee’s most innovative moves was introducing vermicomposting by using earthworms to convert goat waste into organic fertiliser.

“We used to sell raw manure at RM10 for a 20kg bag. Now, we sell the vermicompost at RM5 per kg,” he said, adding that he can produce up to five tonnes of the organic compost each month.

The fertiliser is now used by durian and avocado farmers throughout Sabah.

Remarkably, worm farming now contributes nearly 50% of his Borneo Integrated Farm’s total income.

Today, Lee’s farms boast a range of activities – goat, deer and fruit farming as well as vermicomposting, fish breeding and cold storage facilities.

He has also set up cold storage outlets in Putatan and Keningau, selling fresh goat’s milk, meat and other locally produced goods.

Controlling the entire chain from farm to table, he said, ensures quality, freshness and better returns for the hard work.

Lee’s farms also employ odour-­control techniques such as fermented silage feeding to minimise smells, which is important as the facilities are located near residential areas.

Despite his success, the journey has not been without setbacks.

Lee said his farms had been hit by floods multiple times, with the most recent incident occurring in February.

Yet, he remains undeterred.

“Farming is about resilience. Yes, we had losses, but with some government assistance and a lot of hard work, we bounced back,” he said.

For Lee, the key to success lies in what he calls the three Ps – patience, passion and perseve­rance.

Although he did not pursue a career in his field of study, Lee said his accounting background has been invaluable in managing finances and growing the business sustainably.

“Cash flow is king. You need to reinvest wisely, track your spending and avoid leaking money,” he added.

Lee said he hopes his story can shift mindsets and encourage more young people to explore careers in agriculture.

He also attributed his success to his wife, family and God for their support and guidance

-  By SANDRA SOKIAL,