Business · Malaysia Bureau
Malaysia's fiscal deficit to narrow to 3.3% by 2027, finance ministry says
Malaysia's fiscal deficit is on track to narrow to 3.3 per cent of gross domestic product in 2027, according to projections from the finance ministry. The improvement reflects the government's commitment to fiscal consolidation over the medium term.
LSN Malaysia ·
KUALA LUMPUR — The government projects Malaysia's fiscal deficit will decline to 3.3 per cent of gross domestic product (GDP) in 2027, marking continued progress toward fiscal sustainability, the finance ministry announced on Wednesday.
The narrowing deficit represents a key milestone in the country's fiscal consolidation roadmap, which aims to strengthen public finances while maintaining economic growth. The trajectory reflects efforts to enhance revenue collection, manage expenditure growth and implement structural reforms across the public sector.
The projection underscores Malaysia's commitment to bringing the fiscal deficit within the 3 per cent threshold established under the Medium Term Fiscal Framework. Achieving this target is seen as crucial for maintaining investor confidence and reducing the debt burden on future generations.
The ministry's fiscal outlook comes amid efforts to balance competing priorities including infrastructure investment, social spending and debt reduction. Policymakers have emphasised the importance of prudent fiscal management to support long-term economic resilience and development goals.