KUALA LUMPUR: Malaysia is expected to record economic growth exceeding 5% this year, marking the third consecutive year above that threshold, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the government was increasingly confident that full-year growth would surpass 5%, compared with its earlier gross domestic product (GDP) growth projection of between 4.8% and 5.3%.
"The government is now confident that growth this year will exceed 5%.
"This would mark the third consecutive year of growth exceeding 5% under the Madani government," he said in the Dewan Rakyat on Thursday (Oct 29).
Amir Hamzah said the government would continue pursuing an expansionary but responsible fiscal policy to support economic growth while ensuring its benefits reached Malaysians.
He said federal expenditure is projected to increase from the revised RM444.1bil this year to RM459.8bil in 2027, comprising RM376bil in operating expenditure and RM83bil in development expenditure.
Addressing questions over development allocations under the 13th Malaysia Plan (13MP), he clarified that its RM430bil ceiling represented a five-year planning allocation rather than an equal annual distribution.
"If divided equally, the allocation would amount to RM86bil annually.
"However, annual allocations are not determined through equal distribution, as payment schedules depend on the progress, readiness and requirements of individual projects," he said.
On Sabah's RM18.7bil federal allocation, Amir Hamzah provided a breakdown comprising RM8.9bil in operating expenditure, RM7bil in development expenditure and RM2.8bil in grants to the state government.
He said negotiations were continuing to finalise a fair and sustainable formula for Sabah's special grant under the Federal Constitution.
"The government respects the principle of special grants in accordance with the Constitution.
"Negotiations are ongoing to finalise a fair and sustainable calculation method," he said.
Separately, Amir Hamzah disclosed that nearly RM12bil in Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) assistance had been disbursed to eligible recipients as of Oct 22.
Of this, RM3.6bil had been distributed under three phases of STR payments.
He said nearly nine million recipients had utilised Sara assistance, recording RM6.1bil in transactions and a utilisation rate of 99.7%.
Meanwhile, he said more than 20 million recipients had used the Sara Untuk Semua assistance, with transactions amounting to RM1.9bil and a utilisation rate of 92%.
On fiscal management, Amir Hamzah acknowledged that government debt would continue increasing as long as Malaysia recorded a deficit.
"As long as the country records a deficit, debt will continue to increase.
"The government is working to control this increase and ensure financing supports productive needs," he said.
He also clarified that total sukuk issuance should not be equated with increases in net government debt, as issuance included refinancing maturing obligations.
He said the government is targeting a fiscal deficit of 3.3% in 2027, compared with an estimated 3.6% this year.
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