KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has emphasised that Malaysia’s financial management must be anchored on prudence and discipline, in line with the Public Finance and Fiscal Responsibility Act 2023 (FRA).
Chairing the Fiscal Policy Committee (FPC) meeting, Anwar described the platform as crucial for formulating clear fiscal strategies and guiding the nation’s economic direction.
He noted that the Madani Government must continue balancing efforts to sustain economic growth with measures to safeguard fiscal sustainability, particularly against the backdrop of global uncertainties.
“Despite ongoing challenges worldwide, Malaysia’s economy remains resilient, recording a 4.4 per cent growth rate in the first half of 2025. At the same time, unemployment has declined to 3.0 per cent — the lowest in a decade,” he said in a Facebook post.
Anwar further highlighted that the government successfully reduced the fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent of GDP in 2024, underscoring its commitment to responsible fiscal management.
In a separate statement, the Finance Ministry said that under the 13th Malaysia Plan, fiscal space will be optimised to drive transformative public investments (“Raise the Ceiling”) while also improving the people’s quality of life (“Raise the Floor”).
Looking ahead, Malaysia’s economy is projected to expand between 4.0 and 4.8 per cent in 2025, supported by robust domestic demand, moderate inflation, and a steady labour market.
The FPC also reaffirmed the government’s commitment to narrowing the fiscal deficit to 3.8 per cent in 2025 and achieving a deficit of three per cent or below over the medium term, in line with FRA requirements. The meeting also serves as a key step in shaping the fiscal trajectory ahead of Budget 2026, scheduled for tabling on Oct 10.
As part of its fiscal reform efforts, the government is advancing the Medium-Term Revenue Strategy (MTRS) to broaden the revenue base, introduce a more progressive tax structure, and enhance compliance with global standards.
Priority will also be given to plugging leakages and improving efficiency, including through the phased rollout of the e-invoicing system.
“These measures reflect the government’s determination to build a fairer, stronger and more sustainable fiscal framework, one that underpins long-term growth and enhances the well-being of the rakyat,” the Finance Ministry said.
Source: Bernama
