From Malay Mail · · 1m 20s
Malaysia's Fiscal Health Improves Per BMI Forecast
BMI forecasts Malaysia's fiscal deficit narrowing to 3.4% of GDP in 2027 from 3.6% in 2026.
In brief
BMI forecasts Malaysia's fiscal deficit narrowing to 3.4% of GDP in 2027 from 3.6% in 2026. BMI maintains Malaysia's fiscal deficit will narrow to 3.4% of GDP in 2027 from 3.6% in 2026. Originally reported by Malay Mail.
BMI forecasts fiscal deficit narrowing
BMI maintains Malaysia's fiscal deficit will narrow to 3.4% of GDP in 2027 from 3.6% in 2026.
“KUALA LUMPUR, Oct 13, BMI has maintained its forecast for malaysia’s fiscal deficit to narrow to 3.4 per cent of gross domestic product (gdp) in 2027 from an estimated 3.6 per cent in 2026”
Revenue target set at RM380.8 billion
Government targets RM380.8 billion revenue in 2027, a 4.7% year-on-year increase from 2026's RM363.3 billion.
“The fitch solutions unit said it expects the government to attain its 2027 revenue target of rm380.8 billion”
Higher oil prices boost petroleum revenue
Higher oil prices expected to increase petroleum-related revenue to 2.6% of GDP in 2027 from 2.5% in 2026.
“higher oil prices are expected to boost malaysia’s petroleum-related revenue”
Petronas dividends rise to RM32 billion
Petronas dividends expected to increase to RM32 billion in 2027 from RM27 billion in 2026.
“the government expects dividends from petronas to increase to rm32 billion in 2027”
Subsidies and social assistance rise
Subsidies and social assistance expected to rise to RM74.5 billion (3.2% of GDP) from RM49 billion.
“operating expenditure is expected to remain high, accounting for 82 per cent of total expenditure”
Development spending falls to RM83 billion
Development spending set to fall to RM83 billion (3.6% of GDP) in 2027, below the RM86 billion annual average.
“the allocation for subsidies and social assistance was raised to rm74.5 billion, or 3.2 per cent of gdp”
Budget 2027 targets 3.3% deficit
Government targets fiscal deficit of 3.3% of GDP in 2027, a gradual pace of consolidation from 3.6% in 2026.
“the government has targeted a deficit of 3.3 per cent of gdp in 2027”
Here's the gist
BMI maintains Malaysia's fiscal deficit will narrow to 3.4% of GDP in 2027 from 3.6% in 2026.
