Fiscal reforms needed to keep economy on solid track, says PM

 

The government needs to implement fiscal reforms to ensure that the economy remains on a sustainable and solid track, Prime Minister Anwar Ibrahim said.

He said for Malaysia to become a high-income economy based on humane values, the fiscal reforms will be focused on targeted subsidies and revenue base expansion to create fiscal space that can be mobilised to improve the people’s welfare.

“The government will also put a stop to the debt addiction syndrome to restore foreign investors’ confidence,” he said in a post on X today.

The prime minister said fiscal reform measures, while inconvenient for everyone, are necessary to rejuvenate the national economy.

“Given the tax revenue-to-gross domestic product ratio of only 11.8 percent, the government has limited space to invest in people development and provide the appropriate assistance to the vulnerable and needy groups,” he said.

Yesterday, Anwar chaired a Fiscal Policy Committee (FPC) meeting which discussed and examined the latest Malaysian economic scenario as well as the short- to medium-term outlook for the country’s fiscal position.

He said during the FPC meeting, committee members agreed to strengthen the Debt Management Office to enhance the government’s debt management as well as streamline the role of the Finance Ministry’s Investor Relations Office which serves as the main reference centre for market investors.

Also present were Deputy Prime Minister and Energy Transition and Water Transformation Minister Fadillah Yusof, Economy Minister Rafizi Ramli, Finance Minister II Amir Hamzah Azizan, Chief Secretary to the Government Mohd Zuki Ali, Treasury Secretary-General Johan Mahmood Merican, Bank Negara Malaysia governor Abdul Rasheed Abdul Ghaffour, as well as Finance Ministry’s senior officials.

- Bernama