Malaysia Aims to Reduce Debt-to-GDP Ratio to 60%

The Malaysian government has announced its intention to reduce the country’s debt-to-GDP ratio to 60% in the near future. This move is part of the government’s broader strategy to strengthen its fiscal position and reduce its reliance on debt. The current debt-to-GDP ratio in Malaysia stands at around 63%, which is higher than the government’s target. The government aims to achieve this target through a combination of measures, including reducing its budget deficit, increasing revenue, and implementing fiscal reforms. The reduction in debt-to-GDP ratio is expected to have a positive impact on the country’s credit rating, which will in turn attract more foreign investment. The government has also announced plans to increase its revenue through the introduction of new taxes and the improvement of tax collection efficiency. Additionally, the government will be implementing austerity measures to reduce its expenditure and minimize waste. The reduction in debt-to-GDP ratio is also expected to reduce the country’s vulnerability to economic shocks and improve its resilience to external factors. The government has set a timeline to achieve this target, with the aim of reducing the debt-to-GDP ratio to 60% by the end of the current fiscal year. The government is confident that it can achieve this target, given its strong economic fundamentals and the implementation of fiscal reforms. The reduction in debt-to-GDP ratio will also have a positive impact on the country’s business environment, making it more attractive to investors and improving the overall competitiveness of the economy. Furthermore, the government’s efforts to reduce its debt-to-GDP ratio will also help to reduce the country’s interest payments, which will in turn free up more resources for other priority areas such as education and healthcare. The government’s plan to reduce its debt-to-GDP ratio has been welcomed by economists and investors, who see it as a positive step towards improving the country’s fiscal health. However, some have also cautioned that the government will need to be careful in its implementation of austerity measures, to avoid negatively impacting the economy. Overall, the government’s plan to reduce its debt-to-GDP ratio to 60% is a positive step towards improving the country’s fiscal health and reducing its reliance on debt. The success of this plan will depend on the government’s ability to implement fiscal reforms, reduce its budget deficit, and increase its revenue. If successful, the plan will have a positive impact on the country’s economy, making it more attractive to investors and improving the overall competitiveness of the economy.

Source