From Malay Mail · Arif Zikri · · 1m
Malaysia Targets 3.3% Fiscal Deficit by 2027
Malaysia aims for 3.3% fiscal deficit in 2027, 3% by 2028, Treasury sec-gen says.
In brief
Malaysia aims for 3.3% fiscal deficit in 2027, 3% by 2028, Treasury sec-gen says. Malaysia targets 3.3% fiscal deficit in 2027 and 3% by 2028 to maintain investor confidence under Fiscal Responsibility Act. Originally reported by Malay Mail.
Malaysia fiscal deficit target
Malaysia aims for 3.3% fiscal deficit in 2027 and 3% by 2028.
“Malaysia targets 3.3pc fiscal deficit in 2027, 3pc by 2028, says Treasury sec-gen”
Treasury sec-gen statement
Treasury secretary-general Tan Sri Johan Mahmood Merican said fiscal consolidation remains a key government priority.
“fiscal consolidation remained a key government priority, particularly in maintaining investor confidence”
Investor confidence focus
Government emphasizes fiscal consolidation to maintain investor confidence and plans to adhere to Fiscal Responsibility Act.
“we remain committed to the pledges made under the Fiscal Responsibility Act, so that we can achieve a fiscal deficit as low as three per cent by 2028”
2027 fiscal deficit target
Government targets 3.6% fiscal deficit this year after reducing from 5.5% in 2022 to 3.7% in 2025.
“The government is targeting a fiscal deficit of 3.6 per cent this year, after reducing it from 5.5 per cent in 2022 to 3.7 per cent in 2025”
Middle East uncertainty
Uncertainty in the Middle East and potential higher oil prices factored into next year's planning.
“uncertainty in the Middle East and the possibility of higher oil prices had been factored into the government's planning for next year”
Subsidy allocation
RM40 billion subsidy allocation expected to be maintained into next year.
“we estimate that this year’s subsidy allocation of around RM40 billion will be maintained into next year”
Fiscal adjustments
Government will make adjustments to subsidies based on oil price changes.
“we will make adjustments according to circumstances”
What matters most
Malaysia targets 3.3% fiscal deficit in 2027 and 3% by 2028 to maintain investor confidence under Fiscal Responsibility Act.
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