00:00An economist said Malaysia's fiscal consolidation initiative to reduce the fiscal deficit is
00:07on track, but the government needs to ensure the positive momentum continues.
00:12Bank Ngomalak Malaysia chief economist Afzal Nizam Rashid has given the thumbs up to the
00:17administration for lowering the fiscal deficit.
00:21He also noted that the government's total revenue had risen to RM324.6 billion in 2024,
00:29which is higher compared to initial estimates of RM322.1 billion.
00:35Afzal Nizam said other government measures such as the 10% low value goods tax and raising
00:41the services tax rates from 6% to 8% have contributed to a lower fiscal deficit of RM79.2
00:48billion compared to the estimated RM84.3 billion.
00:53He also acknowledged Bank Negara Malaysia's role in driving the economy, noting that it
00:58was able to normalise the overnight policy rate from an all-time low of 1.75% to 3% between
01:052022 and 2023.
01:08The government outperformed its fiscal deficit target in 2024, achieving a gross domestic
01:14product reduction to 4.1% from 5% the previous year.
01:19It was an improvement from the initial forecast of 4.3%, while the projected deficit is set
01:24to decrease to 3.8% of GDP in 2025.
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