PUTRAJAYA: Domestic policy is crucial in the government's efforts to develop the country's position to ensure better economic management, and at the same time, avoid leakages, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that it is important for the government, especially the Ministry of Finance, to pay full attention to good governance and economic management, to avoid leakages and to speed up the development approval process.

"For the Ministry of Finance staff, we cannot run away from such a focus, which is to fully concentrate on it," he said when speaking at the Ministry of Finance staff assembly today.

Anwar said that the reforms implemented to reduce leakages and improve governance enabled the government to improve assistance to the people, including the adjustment of civil servants' salaries.

This gives new confidence and recognises the welfare of the people, he said.

Meanwhile, Anwar also said that the country needs sufficient fiscal space to ensure prosperity, and at the same time the people's standard of living can be improved.

It was previously reported that the MADANI government is facing fiscal constraints due to the national debt reaching RM1.2 trillion, which is almost 65 per cent of the gross domestic product.

-- BERNAMA