S&P Ratings: Budget 2021 a cautious step toward consolidation

“The Malaysian government's budget proposal entails a deficit equivalent to 5.4% of GDP in 2021, moderately higher than our current forecast of 5.0%,” it said.

KUALA LUMPUR: Malaysia's Budget 2021 proposals reflect a first cautious step toward fiscal consolidation following a deficit estimated at 6% of GDP in 2020, says S&P Global Ratings.

“Nevertheless, against a tide of economic uncertainty and continued revenue weakness, Malaysia faces enduring pressure on its fiscal and debt settings,” the rating agency said on Monday.