There is still hope despite higher fiscal deficit

Strong roots: A farmer sprays pesticide in a rice field in Sekinchan. The government’s latest budget attempts to not put too much burden on those with smaller incomes. — Reuters

MALAYSIA’S fiscal deficit as a percentage of its gross domestic product (GDP) being higher than its regional peers implies less flexibility to support the economy should a crisis arise, says UOB Group’s senior economist, Julia Goh.

During the recent Budget 2024 announcement, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s national debt had reached RM1.5 trillion, and exceeds 80% of GDP which could badly impact the economy.