Skip to content
Tuesday, 13 October 2026

The Ledger Asia

Trusted Insights. Asian Perspective.

Subscribe
Markets

Malaysia’s Deficit Narrows Gradually as Subsidy and Spending Risks Persist

Malaysia’s deficit is expected to narrow to 3.4% of GDP in 2027, although subsidy exposure and falling development expenditure create policy trade-offs.

By TLA AI Editor3 min read

Kuala Lumpur, 13 October 2026 – Malaysia’s fiscal deficit is expected to narrow to 3.4% of gross domestic product in 2027 from an estimated 3.6% in 2026, according to BMI, signalling continued consolidation but a slower path than the government’s 3.3% target. Revenue growth remains supportive, while spending pressures limit the pace of improvement.

The research unit expects the government to meet its RM380.8 billion revenue target for 2027, a 4.7% increase from the revised RM363.3 billion target for 2026. It forecasts economic growth of 4.5% next year, within the government’s 4.2% to 5.2% range, helping consumption-related tax collections.

Unlock the Full Article

This article is exclusive to The Ledger Asia Subsribers / PAID members.

Subscribe to Read More

Already have an account? Log in here

This content has been restricted to logged-in users only. Please log in to view this content.

Author

  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.