KUALA LUMPUR, Oct 13 — Malaysia is capable of achieving its fiscal deficit target of 3.3 per cent of gross domestic product (GDP) under Budget 2027, provided the assumptions underpinning the budget hold amid global economic and geopolitical uncertainties, said Datuk Seri Tengku Zafrul Abdul Aziz.
The Malaysian Investment Development Authority (Mida) chairman, who is also a senior political advisor to the Prime Minister and a former Finance Minister, noted that the country’s fiscal position had improved over the past three years.
“When we look at the fiscal discipline that we have demonstrated over the last three years, with the fiscal deficit at around 5.5 per cent in 2022, we are moving in the right direction.
“If we look at government revenue and the country’s GDP growth, we should be able to achieve the 3.3 per cent target, provided the global geopolitical situation, the various challenges facing the world, oil prices and the other assumptions underpinning the budget remain as expected,” Tengku Zafrul said to Bernama.
He described Budget 2027 as a responsible budget that balances investment incentives with efforts to ensure that economic growth benefits a wider segment of Malaysians and businesses.
He noted that the budget took into account the interests of different stakeholders, while seeking to strengthen economic growth and ensure that its benefits reached both lower-income groups and businesses.
“If you look at it objectively, it is a well-thought-out and balanced budget that takes into account the interests of all stakeholders while ensuring that both the lower- and higher-income groups are supported,” he said.
On investment prospects, Tengku Zafrul said planned capital expenditure by government-linked investment companies (GLICs) and government-linked companies (GLCs) could generate positive spillover effects for the broader economy.
He said investments by Khazanah Nasional Bhd, the Employees Provident Fund and other institutions, as well as capital expenditure by Petronas sent positive signals to potential investors, as domestic investment commitments could help strengthen foreign investors’ confidence in Malaysia.
“I believe that these are good for investors to take note of, because when they come to invest in a country, they also want to see confidence, and if our own companies or institutions are investing, then they will also be more comfortable or more confident in doing so,” he said. — Bernama