Malaysia: Fiscal deficit to double for 2020

  • The government will embark on fiscal consolidation as part of medium- and long-term economic recovery plans as the fiscal deficit is expected to widen between 5.8% to 6% in 2020, Deputy Finance Minister I Abdul Rahim Bakri told the Dewan Rakyat on 12 Aug 20.
  • This will be nearly double the initial deficit projection of 3.2%.
  • The fiscal consolidation process will be done in phases once the economy recovers, he added, to ensure that the country’s debt remains at manageable levels and to reduce the need for more borrowing.
  • Among the initiatives will be improvements to the administration of taxes and increasing efficiency in terms of spending, he said.
  • Taking into account the economic stimulus package, the national debt is expected to stand at MYR1.264 tr by the end of 2020, Rahim added.

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