The 12th Malaysia Plan and new ways of raising funding sources

THE 12th Malaysia Plan (12MP) acknowledges the need for fiscal policy to be expansionary. It also acknowledges that “fiscal consolidation [can only] resume once the economy is on a better footing to ensure long-term fiscal sustainability”.

However, in the same breath, the 12MP is also committed to – and by extension locked into – reducing the fiscal deficit to between -3.5% and -3% (negative = deficit) of GDP by 2025 (ie within a fixed time frame).