Fitch Says Malaysia's New Government To Face Challenges Advancing Fiscal Consolidation

FITCH :

• MALAYSIA’S NEW GOVERNMENT TO FACE CHALLENGES ADVANCING FISCAL CONSOLIDATION

• MALAYSIA GOVERNMENT'S POLICY AGENDA REMAINS UNCLEAR AS YET, BUT WE EXPECT FEDERAL GOVERNMENT DEFICITS TO REMAIN ABOVE 4% OF GDP IN 2022-2024

• WE HAVE REVISED OUR FORECAST FOR 2022 ECONOMIC GROWTH FOR MALAYSIA TO 7.8%, FROM 6.5% PREVIOUSLY

• MALAYSIA'S LIKELY SHIFT TO TARGETED REGIME WILL BE GRADUAL, GIVEN SUBSIDIES HELPED CONTAIN INFLATION, FORECAST IT TO AVERAGE LOW 3.4% IN 2022