IMF ASSESSMENT REFLECTS MALAYSIA’S FISCAL DISCIPLINE, COMMITMENT TO REFORMS — AMIR HAMZAH

KUALA LUMPUR, Dec 19 (Bernama) -- The International Monetary Fund’s (IMF) assessment of Malaysia’s economic performance reflects the nation’s prudent fiscal management, strong domestic demand, and commitment to structural reforms under the MADANI Economy framework, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the IMF’s recognition of the Public Finance and Fiscal Responsibility Act 2023 and the government’s clear roadmap to reduce the fiscal deficit underscores Malaysia’s fiscal discipline and commitment to long-term stability and sustainable growth.

“With inflation remaining low, the ringgit emerging as the best-performing currency, record approved foreign investments, and forward-looking initiatives under the 13th Malaysia Plan, the country is well-positioned to navigate global uncertainties while advancing inclusive development and deeper ASEAN integration,” he said in a post on LinkedIn today.

Earlier, IMF Mission Chief for Malaysia Masahiro Nozaki said during consultations with Malaysian authorities and other stakeholders that Malaysia’s commitment to prudent fiscal management has been demonstrated through the passage of the landmark Public Finance and Fiscal Responsibility Act in 2023 and the steady reduction in the fiscal deficit since 2022.

Nozaki said IMF staff welcomed the authorities’ plan to further reduce the fiscal deficit to 3.5 per cent of gross domestic product (GDP) in 2026 and to 3.0 per cent of GDP by 2028.

“Continuing to rebuild fiscal buffers through further high-quality and sustainable revenue and expenditure measures remains critical, as federal government debt, standing at 64.6 per cent of GDP at end-2024, remains above pre-pandemic levels.

“Staff also welcomes ongoing efforts to strengthen fiscal transparency and spending efficiency, including the passage of the new Government Procurement Act. Inflation, averaging 1.4 per cent during January–October 2025, is projected to remain stable and gradually return to its long-term average of 2.0 per cent,” he said.

In this context, Nozaki said the IMF staff assesses the current monetary policy stance as appropriate.

-- BERNAMA