# Malaysia Targets 3.3% Fiscal Deficit by 2027

> Malaysia aims for 3.3% fiscal deficit in 2027, 3% by 2028, Treasury sec-gen says.
- Title: Malaysia Targets 3.3% Fiscal Deficit by 2027 · Malay Mail
- Summary: 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…
- Keywords: malaysia, fiscal deficit, treasury sec-gen, fiscal responsibility act, investor confidence, 2027, 2028, news, world, Targets, Fiscal, Deficit
- Source: Malay Mail — https://malaymail.com/news/malaysia/2026/10/12/malaysia-targets-33pc-fiscal-deficit-in-2027-3pc-by-2028-says-treasury-sec-gen/238862
- Author: Arif Zikri
- Published: 2026-10-12T19:50:40+00:00
- Read time: 1 min
- Topics: malaysia, fiscal deficit, treasury sec-gen, fiscal responsibility act, investor confidence, 2027, 2028, news, world
## 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
## Key takeaway

Malaysia targets 3.3% fiscal deficit in 2027 and 3% by 2028 to maintain investor confidence under Fiscal Responsibility Act.