Malaysian Finance Minister: "Malaysia Will Meet Its Budget Deficit Target"

Forex News

Malaysian finance minister Lim Guan Eng said Malaysia will eventually meet its budget deficit aim for this year, despite the fact that cut the goods and services tax will cost a 21 billion ringgit ($5 billion dollars). The new government stated that it has 1 trillion ringgit in debt and liabilities. The finance minister said: "We are mindful that Federal Government debt which has exceeded RM1 trillion, requires fiscal discipline".

The government expects fiscal deficit to reach 40.1 billion ringgit in 2018 (from 39.8 billion ringgit), which would keep the budget deficit at 2.8% of GDP. According to Lim Guan Eng, current account balance will stay positive and economic outlook will remain unchanged.