KUALA LUMPUR, August 6 – Prime Minister Datuk Seri Anwar Ibrahim reaffirmed in Parliament today that Malaysia will continue to reduce its fiscal deficit gradually to avoid compromising crucial allocations for education, healthcare, and the Sumbangan Tunai Rahmah (STR) aid programme.
Emphasising the risks of abrupt cuts, he noted that sudden reductions could hinder progress in public services, which saw significant boosts in 2024 — RM64 billion for education, RM45 billion for health, and RM15 billion for STR and SARA combined. The fiscal deficit, which stood at 5.5% of GDP in 2022, has since been trimmed to 4.1% in 2024.
With national debt issuance also dropping from RM100 billion in 2021 to RM76.8 billion this year. Anwar stressed that this phased approach is crucial for long-term debt sustainability and has already improved investor confidence, attracting stronger foreign and domestic investments into Malaysia.
