Treasury secretary-general Datuk Johan Mahmood Merican said the country's fiscal consolidation efforts are bearing fruit, with the budget deficit narrowing from 5.5% of GDP in 2022 to 4.1% last year and further targeted to reach 3.8% in 2025.
A corner of Kuala Lumpur (Photo: thecrazytourist.com)
Kuala Lumpur (VNA) - Malaysia is on track to reduce its debt-to-GDP ratio to 60% over the medium term, backed by disciplined fiscal managemen♛t and lower annual borrowings, the New Straits Times reported.
Treasury secretary-general Datuk Johan Mahmood Merican said the country's fiscal consolidation efforts are bearing fruit, with the budget deficit narrowing from 5.5% of GDP in 2022 to 4.1% last year and further targeted to reach 3.8% in 2025.
Concurrently, annual new borrowings have declined significantly, from 99 billion MYR (nearly 23.5 billion USD) in 2022 to 77 billion MYR in 2024, reflecting the government's commitment to long-term fiscal sustainability.
The level of new debt is being lowered each year, he said, stating it is consistent with the government’s target to reduce the national debt level to 60% of GDP.
So far, the government has been on track and what has been implemented is aligned with what was targeted under the fiscal responsibility legislation.
Prime Minister Anwar Ibrahim said the decline in new debt aligns with the government's efforts to narrow the fiscal deficit, adding that the administration remains committed to reducing the deficit gradually and responsibly, without disrupting national development.
Anwar, who also serves as finance minister, said the government has deliberately taken a phased approach to ensure that deficit reduction does not compromise development priorities or undermine investor confidence.
Johan said the government's expansion of the Sales and Services Tax (SST) was part of a progressive and targeted tax approach, one designed to avoid overburdening the rakyat and support sustainable growth./.
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According to Dr. Goh Lim Thye, a lecturer at the Faculty of Economics, University of Malaya, Malaysia’s public debt stood at 1.22 trillion MYR (290 billion USD) as of April 2024, equivalent to 63% of its Gross Domestic Product (GDP). However, this level is not inherently risky.
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The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
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The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
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Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
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