12MP fiscal deficit target ‘reasonable’

RHB Investment Bank Bhd senior economist Nazmi Idrus said the government’s long-term fiscal consolidation goal, as stated in the 12th Malaysia Plan (12MP), marked an improvement compared to the current expected fiscal deficit target of 6.5% to 7% for 2021.

KUALA LUMPUR: Malaysia’s fiscal deficit target, projected at 3% to 3.5% of gross domestic product (GDP) by 2025, “seems reasonable assuming there is no other negative external shock,” said RHB Investment Bank Bhd senior economist Nazmi Idrus.

He said the government’s long-term fiscal consolidation goal, as stated in the 12th Malaysia Plan (12MP), marked an improvement compared to the current expected fiscal deficit target of 6.5% to 7% for 2021.