00:00Government reforms undertaken over the past few years have strengthened Malaysia's ability to manage economic shocks even as concerns persist
00:10over rising subsidy spending pressures, says the Central Bank.
00:14Bank Negara Malaysia Governor Abdul Rashid Ghaffur said Malaysia's policies have factored in subsidies when assessing the impact of external
00:23shocks and inflation on the economy.
00:25Rashid said the implemented reforms have improved the country's fiscal position, noting that the deficit has narrowed significantly in recent
00:34years, with the government maintaining its commitment to fiscal consolidation.
00:39He told a press conference that the fiscal deficit had been brought down from 6.4% in 2021 post
00:46-pandemic to 3.7% the previous year when asked about the impact of subsidies on economic growth.
00:53Malaysia's key fiscal reforms in recent years include subsidy rationalization towards more targeted assistance, such as the budi-based fuel
01:02support and the expansion of the sales and service tax, tax-based last year.
01:07In March, the Finance Ministry said monthly expenditure on fuel subsidies had surged to RM4 billion, nearly six times the
01:16RM700 million recorded in January, raising concerns about the sustainability of subsidy spending amid higher global crude oil prices.
01:26Panyu Jo, FMT.
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