Will Malaysia Achieve Balanced Budget Target Before 2020?

Forex News

The Finance Minister of Malaysia said that the country is unlikely to achieve the goals set for balancing the budget, before 2020, because to achieve this, it will take another two to three years because of increased costs. Second finance minister Johari Abdul Ghani also said that the government will have to increase spending in order to stimulate the economy.

However, some analysts are worried that an increase in government spending will hamper the acceleration of the deficit reduction rate. Prime Minister Najib Razak managed to lower the Malaysian budget deficit every year since 2009, and this was important for maintaining sovereign credit ratings of Malaysia. In the third quarter of 2017, the economy of Malaysia increased at the fastest pace for more than three years.