Is Malaysia’s fiscal health on the mend? BMI says yes in post-Budget forecast

BMI has forecast Malaysia's fiscal deficit to narrow to 3.4 per cent of GDP in 2027, from an estimated 3.6 per cent in 2026. The forecast is based on the government's target of RM380.8 billion in revenue for 2027, a 4.7 per cent year-on-year increase from the revised RM363.3 billion target for 2026. The increase in revenue is expected to benefit from a favourable growth backdrop, with the Ministry of Finance raising its 2026 growth projections to 4.8-5.3 per cent from 4.0-5.0 per cent previously.

The outlook also factors in resilient economic activity, higher oil prices, and increased sales and service tax collections, which have risen from around 7.5 per cent of total revenue in 2009 to 18.0 per cent by the first half of 2026.

Brief written by urgent.news from Malay Mail's own syndicated text. Machine-written — may contain errors; check the original before relying on it.