Malaysia’s Debt to Increase as COVID-19-Related Stimulus Support Continues: Finance Ministry

Speaking to the media, Malaysia’s Finance Minister, Tengku Zafrul Aziz, stated that the Finance Ministry anticipates the country’s fiscal deficit to register at between 5.8% and 6.0% for 2020, as the authorities continue to focus on fiscal stimulus to support the economy through the COVID-19 pandemic.

To date, fiscal injections into the Malaysian economy have reached approximately 20% of gross domestic product (GDP), stated Zafrul. So far in 2020, Malaysia has turned out stimulus packages worth USD 73.3 billion (MYR 305 billion), to support the economy with cash injections.

Malaysia’s debt-to-GDP is currently at 53% and is expected to increase up to 56%, with Zafru...