Malaysia on track to reduce budget deficit to below 3%

PETALING JAYA: Following the recent softening in oil prices, Malaysia’s current account surplus would narrow marginally, but the country would able to achieve its fiscal deficit target for this year and 2015, said International Monetary Fund (IMF).

In a statement yesterday following its visit to Kuala Lumpur and Putrajaya in November, the fund said that Malaysia was on track to achieve its 2014 federal budget deficit of 3.5% and this could decline to below 3% of gross domestic product (GDP) in 2015. The federal budget deficit stood at 3.9% in 2013.