Fiscal Deficit Reduced to 4.1%, Says Prime Minister Anwar Ibrahim

PETALING JAYA: Prime Minister Anwar Ibrahim has announced that the government has successfully reduced the fiscal deficit to 4.1%, surpassing the initial target of 4.3%. This achievement is a testament to the sound economic policies implemented by the government.

Economic Growth Outperforms Projections

The economy has also outperformed initial growth projections of 4%- 5%, with a recorded growth rate of 3.6% in 2023. This is a significant improvement, driven by a 12% surge in investments, the highest in 12 years, and the continued expansion in exports, particularly in the electrical and electronics sector.

Key Factors Contributing to Economic Growth

Anwar attributed the strong growth to a number of factors, including the recovery in tourism and the accelerated implementation of key infrastructure projects. He also highlighted the “catalytic initiatives” under national economic plans, which have provided further impetus to investment growth and the increase in gross domestic product.

Government Policies Boosting Investor Confidence

Anwar emphasized that the government’s policies have been instrumental in boosting investor confidence and strengthening the country’s economic growth. He noted that the government’s efforts to improve the business environment and reduce bureaucracy have contributed to the increased investment and economic growth.

Bank Negara Malaysia’s View

According to Bank Negara Malaysia, the country’s central bank, the increase in gross domestic product was underpinned by continued expansion in domestic demand as well as a rebound in exports. The bank noted that the economic growth was driven by a range of factors, including the expansion in the services sector and the recovery in the manufacturing sector.

Conclusion

In conclusion, the government’s efforts to reduce the fiscal deficit and stimulate economic growth have been successful, with the economy outperforming initial projections. The government’s policies have boosted investor confidence, and the country’s economic growth is expected to continue to strengthen in the coming years.

FAQs

* What is the current fiscal deficit?
The fiscal deficit has been reduced to 4.1%.
* What is the growth rate of the economy?
The economy has outperformed initial growth projections of 4%- 5%, with a recorded growth rate of 3.6% in 2023.
* What are the key factors contributing to economic growth?
The key factors include the recovery in tourism, accelerated implementation of key infrastructure projects, and “catalytic initiatives” under national economic plans.
* What is the government’s policy towards boosting investor confidence?
The government’s policies aim to improve the business environment and reduce bureaucracy, which has led to increased investment and economic growth.