MoF said the government would continue to implement high-impact development projects such as the Mass Rapid Transit, Light Rail Transit and Pan-Borneo Highway
KUALA LUMPUR: The government resolves to continuing to implement measures to reduce the fiscal deficit to 3.1 per cent of gross domestic product in 2016 despite the global economic contraction.
The Ministry of Finance (MoF), in a statement, said the government would continue to optimise expenses and restructure projects based on priorities, while ministries and agencies were required to implement a more prudent spending.
The ministries and agencies have been asked to restructure programmes and projects based on priorities and manage the recruitment of civil servants in a more prudent manner without creating a new unit or an institution.
The government forbids the appointment of foreign consultants except for high-tech projects that require specialised expertise besides adhering to the guidelines on measures to optimise government expenditure.
Under this requirement, the MoF said official visits abroad, as well as the number of employees going overseas have been restricted.
On the venues of events, it said preference ought to be given to government premises, while administrative costs such as printing and supplies should be cut.
The MoF said the government would continue to implement high-impact development projects such as the Mass Rapid Transit, Light Rail Transit and Pan-Borneo Highway that have huge multiplier effects on the economy.
The government will continue to implement projects that would benefit the people besides monitoring domestic economic developments closely and implementing initiatives to boost the export sector, tourism industry and investment and private consumption.
It said the government aspires to reduce non-tariff barriers among ASEAN countries and enhance market access aggressively to, among others, India, as well as Middle Eastern and Eastern European countries.
The government will also expand market opportunities in the "Rebalancing of China", including the halal industry, Islamic finance, healthcare services, tourism industry and agricultural products.
The MoF said the government would also expand the e-visa facility to other countries such as Russia and India, as well as promote niche-tourism products such as eco-tourism, health tourism and historical sites.
It said the government would encourage investments from abroad through cooperation between the Malaysian Industrial Development Authority, the Ministry of International Trade and Industry, Invest KL and Malaysian embassies, as well as encourage private consumption through higher disposable income.
"With these measures in place, the government is confident that the domestic economic growth forecast of between 4.0 to 4.5 per cent this year could be achieved," it said.
