KUALA LUMPUR: The government is committed to resume its fiscal consolidation efforts once the economic conditions stabilise, finance minister Tengku Datuk Seri Zafrul Aziz said.
His statement today came after the government announced a series of economic stimulus packages that totalled RM260bil to cushion the economy against the impact of the coronavirus pandemic.
“Despite the sizeable fiscal outlay in the economic stimulus packages, the government’s commitment towards fiscal discipline has not wavered,” he said.
“To ensure limited medium-term implication to public finance, measures introduced are one-off, temporary and time bound. As these measures are non-recurring expenditures, fiscal consolidation efforts will resume once health and economic conditions stabilise.”
Collectively, Tengku Zafrul said the RM260bil stimulus package was projected to add 2.9 percentage points to the gross domestic product (GDP) in 2020.
"These comprehensive measures would place Malaysia on a stronger footing to benefit from the projected global recovery in 2021," he said.
Malaysia, he said, entered into this unprecedented period from a position of strength, citing the country's healthy financial system, strong domestic institutional investors, adequate buffer and robust policy frameworks.
"These factors and ongoing efforts to further strengthen Malaysia’s policy framework will continue to serve the Malaysian economy well during this challenging phase," Tengku Zafrul said.
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