The pros and cons of austerity drive


Speaking with StarBiz, Socio-Economic Research Centre executive director Lee Heng Guie said the possible deferring and cancellation of projects would likely impact domestic demand and overall growth prospects over the medium term.

PETALING JAYA: The austerity drive that was announced by the government may be a double-edged sword for the RM1.4 trillion economy, say experts.

On the bright side, the move to cut federal government expenses amid ballooning subsidies, may bring the national fiscal health to a slightly better position.

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