Malaysia: Government confident of cutting fiscal deficit

• Nov 19, 2018

PETALING JAYA: Systemic reforms will require time to implement and some parts of the economy may be in for a rough ride but with strong fiscal management and institutional reforms, Malaysia will continue to be on a stronger and more sustainable growth path, Finance Minister Lim Guan Eng says.

Lim said the government is committed to ensure that the country remains business and investment friendly.

“Given our wealth of natural resources, sound economic fundamentals, a strong professional workforce and highly sophisticated capital markets, the time to invest in Malaysia is now. I am excited for what the New Malaysia’s continuing growth story holds for the people as well as for current and future investors,” he said in a press release issued jointly by the CIMB Group , Maybank and Standard Chartered Bank following a recent roadshow in Singapore and Hong Kong led by the Finance Ministry.

The roadshow was organised in partnership with the three banks with the aim to engage ratings agencies and foreign institutional investors to articulate the Pakatan Harapan government’s rationale for the fiscal and development measures put up in Budget 2019.

On concerns that Malaysia’s sovereign rating could be downgraded due to its bigger deficit, Lim said the government is confident of cutting its fiscal deficit from 3.7% in 2018, to 3.4% in 2019, 3.0% by 2020, and 2.8% in 2021. The consolidation exercise would help Malaysia keep its credit ratings at A- without sacrificing economic growth and more importantly, the wellbeing of the people, he added.

Lim reinforced the collaboration between banks and the government, lending weight to the government’s policy direction for a stronger public-private partnership to boost economic growth, ensure a robust financial industry and instil investor confidence, the statement said.

Source: https://www.thestar.com.my/business/business-news/2018/11/19/government-confident-of-cutting-fiscal-deficit/#Ek4ckeTpyB2q4bz7.99