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Malaysia's federal finances show marked improvement in 2025

The Auditor-General's Department reports a significant turnaround in Putrajaya's fiscal position, with revenue surplus climbing and the budget deficit narrowing considerably compared with the previous year.

LSN Malaysia · 5 October 2026

Malaysia's federal finances show marked improvement in 2025

Malaysia's federal government finances have strengthened substantially in 2025, according to the Auditor-General's Department. The nation's revenue surplus increased by RM2.184 billion while the overall budget deficit contracted by RM3.878 billion when compared with 2024 figures.

The improvement reflects a positive trajectory in the government's fiscal management as it navigates economic conditions and budgetary priorities. The narrowing deficit suggests enhanced revenue collection or improved expenditure control, or a combination of both factors.

These figures represent key indicators of the government's financial health and budgetary performance. The Auditor-General's Department, which conducts comprehensive audits of federal government accounts, regularly releases assessments that inform policymakers and stakeholders about the nation's fiscal position.

The results come amid ongoing efforts by the Finance Ministry to strengthen Malaysia's fiscal framework and ensure sustainable public finances. The improved metrics suggest progress toward fiscal consolidation targets established by the government in recent budget cycles.