Malaysia to Balance Medium-term Fiscal Policy Amidst COVID-19 Recovery Efforts: Tengku Zafrul

The financial support packages released to assist Malaysia’s COVID-19 recovery have contributed to Malaysia’s largest national budget at MYR 322.5 billion for 2021. Malaysian Prime Minister, Tengku Zafrul Abdul Aziz has stated that this is part of a clear and well thought through strategy for fiscal consolidation to achieve a deficit of less than 4% under the Government of Malaysia’s Medium-Term Fiscal Framework.

Under this Framework, Tengku Zafrul noted the use of a multi-prong strategy to boost revenue, which includes regulating the shadow economy (estimated at MR 300 billion or 18% of Malaysia’s gross domestic product in 2019), enhancement of tax income and reducing Malaysia’s dependence on commodities.

Speaking at the 13th Annual CGS...