Finance ministry: Malaysia’s fiscal deficit to narrow to 3.3 pc in 2027

The Ministry of Finance projects Malaysia's fiscal deficit to narrow to 3.3% of GDP by 2027, focusing on sustainable revenue improvements and expenditure efficiency.

Proceeds from Petroliam Nasional Bhd's dividend are expected to increase from RM20 billion to RM27 billion, aiding fiscal pressures and boosting government revenue by 6%.

Amid global challenges, the government commits to fiscal discipline, providing targeted subsidies and financing support to ensure economic resilience and prioritise productive investments.

KUALA LUMPUR, Oct 9 — The fiscal deficit is projected to narrow to 3.3 per cent of gross domestic product (GDP) in 2027, in line with the medium-term consolidation under the Public Finance and Fiscal Responsibility Act 2023 (Act 850), the Ministry of Finance (MoF) said.

In its Fiscal Outlook and Federal Government Revenue Estimates 2027 released today, the MoF said the pace and quality of consolidation will remain calibrated to prevailing economic conditions, with fiscal adjustment anchored by sustainable revenue improvements and expenditure efficiency.

“Consequently, borrowing requirements will be contained, thereby supporting a more sustainable financing profile, reinforcing the medium-term debt trajectory.

“Greater private sector participation through public-private partnership and co-investment arrangements will complement public financing for infrastructure and facilitate investment in areas with strong economic spillovers and long-term growth potential,” it added.

MoF said the Government-Linked Enterprises Activation and Reform Programme (GEAR-uP) initiatives will continue to complement broader efforts to mobilise investment towards strategic sectors in line with national development priorities.

Meanwhile, the ministry said proceeds from Petroliam Nasional Bhd’s dividend are expected to be revised upward from RM20 billion to RM27 billion, in tandem with higher average global crude oil prices.

This has provided an important fiscal buffer to accommodate additional expenditure pressures, with federal government revenue estimated to increase by six per cent to RM363.6 billion in 2026, compared to the initial estimate, it said.

“Taking into account the fiscal implications arising from external shocks and the measures undertaken to cushion the impact, the federal government’s fiscal deficit for 2026 is revised to 3.6 per cent of GDP, compared with the original target of 3.5 per cent.

“This modest revision reflects the government’s calibrated response in navigating external headwinds, while stronger revenue performance and expenditure reprioritisation have helped contain the impact on the overall fiscal position,” it said.

The ministry said the escalation of the West Asia conflict and prolonged supply disruptions have placed significant pressure on global trade and the economy, thereby impacting the cost of living and fiscal resources.

It added the government swiftly mobilised a coordinated whole-of-government response to safeguard the supply of energy and essential goods, contain cost pressures and strengthen economic resilience.

Key measures included continued targeted fuel subsidies and temporary adjustments to fuel quotas and controls to manage demand and curb leakages, it said.

In addition, over RM15 billion in financing support was made available to micro, small and medium enterprises (MSMEs) in 2026, including RM5 billion through Syarikat Jaminan Pembiayaan Perniagaan Bhd; RM5 billion of SME Stabilisation Relief Facility under Bank Negara Malaysia; and microfinancing facilities of more than RM5 billion channelled through various agencies and development financial institutions.

MoF said these efforts were complemented by expenditure reprioritisation to contain the fiscal impact of higher global crude oil prices, which led to an increase in fuel subsidies to RM40 billion.

Following the stabilisation of domestic energy supplies, the monthly quota for BUDI95 was restored to 300 litres, effective Sept 1, 2026, it said.

The electricity bill assistance was also expanded, with the exemption threshold raised to 800 kilowatt-hours (kWh) per month until end-2026, providing additional relief to households amid higher energy costs, it said.

Notwithstanding the challenging global fiscal environment, the government remains committed to maintaining fiscal discipline and ensuring the medium-term consolidation path is on track, said MoF.

It said borrowing requirements will continue to be managed prudently in line with financing needs, supporting fiscal resilience and preserving policy space over the medium term.

Moving forward, the policy stance will strategically channel public resources toward productive investments in elevating the nation’s long-term economic potential, while remaining highly responsive to the immediate needs of the rakyat.

“Amid a challenging global environment and elevated crude oil prices, the fiscal stance will remain supportive of growth, while maintaining the government’s commitment to fiscal consolidation.

“On the expenditure side, fiscal resources will continue to be allocated prudently and prioritised towards programmes with high economic and social returns,” the ministry said. — Bernama

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财政部预计，到 2027 年，马来西亚的财政赤字将缩小至国内生产总值的 3.3%，重点是实现可持续的收入增长和提高支出效率。

马来西亚国家石油公司（Petroliam Nasional Bhd）的股息收入预计将从 200 亿令吉增加到 270 亿令吉，这将有助于缓解财政压力，并使政府收入增加 6%。

面对全球挑战，政府致力于财政纪律，提供有针对性的补贴和融资支持，以确保经济韧性，并优先考虑生产性投资。

吉隆坡，10 月 9 日——财政部表示，根据 2023 年公共财政和财政责任法（第 850 号法令）的中期整顿计划，预计到 2027 年，财政赤字将收窄至国内生产总值 (GDP) 的 3.3%。

财政部今天发布的《2027 年财政展望和联邦政府收入预测》中表示，财政整顿的速度和质量将继续根据当前的经济状况进行调整，财政调整将以可持续的收入增长和支出效率为基础。

因此，借款需求将得到控制，从而支持更可持续的融资模式，巩固中期债务轨迹。

报告还指出，“通过公私合作和共同投资安排，加强私营部门的参与，将补充公共基础设施融资，并促进对具有强大经济溢出效应和长期增长潜力的领域的投资。”

财政部表示，政府关联企业激活和改革计划（GEAR-uP）将继续配合更广泛的努力，调动投资流向符合国家发展优先事项的战略部门。

与此同时，该部表示，由于全球原油平均价格上涨，预计马来西亚国家石油公司（Petroliam Nasional Bhd）的股息收益将从200亿令吉上调至270亿令吉。

报告称，这为应对额外的支出压力提供了重要的财政缓冲，预计到 2026 年，联邦政府收入将比最初估计增长 6%，达到 3636 亿令吉。

“考虑到外部冲击带来的财政影响以及为缓冲冲击而采取的措施，联邦政府2026年的财政赤字占GDP的比重修正为3.6%，而原目标为3.5%。

声明称：“此次小幅调整反映了政府在应对外部不利因素时采取的审慎应对措施，同时，更强劲的收入表现和支出优先顺序的调整也有助于控制对整体财政状况的影响。”

该部表示，西亚冲突升级和长期供应中断给全球贸易和经济带来了巨大压力，从而影响了生活成本和财政资源。

报告还指出，政府迅速调动全政府协调应对措施，以保障能源和必需品的供应，控制成本压力，增强经济韧性。

报告称，关键措施包括继续提供有针对性的燃油补贴，以及暂时调整燃油配额和管控措施，以管理需求和遏制泄漏。

此外，2026 年将向微型、小型和中型企业 (MSME) 提供超过 150 亿令吉的融资支持，其中包括通过 Syarikat Jaminan Pembiayaan Perniagaan Bhd 提供的 50 亿令吉；马来西亚国家银行提供的 50 亿令吉中小企业稳定救济基金；以及通过各种机构和发展金融机构提供的超过 50 亿令吉的小额信贷。

财政部表示，为了控制全球原油价格上涨带来的财政影响，政府还调整了支出优先顺序，并将燃油补贴增加到 400 亿令吉。

公告称，随着国内能源供应趋于稳定，BUDI95 的月度配额已恢复至 300 升，自 2026 年 9 月 1 日起生效。

声明还指出，电力账单援助范围也扩大了，豁免门槛提高到每月 800 千瓦时 (kWh)，直至 2026 年底，为能源成本上涨的家庭提供额外救济。

财政部表示，尽管全球财政环境充满挑战，但政府仍致力于保持财政纪律，并确保中期财政整顿进程按计划进行。

报告称，借贷需求将继续根据融资需求进行审慎管理，以支持财政韧性，并在中期内保持政策空间。

展望未来，该政策立场将有策略地引导公共资源流向生产性投资，以提升国家的长期经济潜力，同时高度响应人民的迫切需求。

“在全球环境充满挑战和原油价格高企的背景下，财政政策将继续支持经济增长，同时保持政府对财政整顿的承诺。

该部表示：“在支出方面，财政资源将继续谨慎分配，并优先用于经济和社会效益高的项目。”——马新社

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