KUALA LUMPUR, Sept 30 — Malaysia remains on the right track in terms of its economic performance despite current challenges, Finance Minister II Datuk Seri Amir Hamzah Azizan said today.
He said based on the data received, the country’s economic figures remain intact.
“We can see that in the past six months, our GDP is still growing at 4.4 per cent, inflation in August is still under control at 1.3 per cent compared to 1.9 per cent last year.
“And we can also see an increase in household income. Inshallah, soon we will present the HIES, which will show the Household Income and Expenditure Survey, where we can see good improvements not just in terms of income but also in terms of reducing poverty in this country,” Amir told reporters at a press conference after delivering a short lecture in conjunction with the Public Economic and Finance Week (MEKA) 2025 programme.
Asked about narrowing the budget deficit for the upcoming Budget 2026, Amir said the government has shown strong fiscal discipline, including through the tabling of the Fiscal Responsibility Act 2023.
“The Act ensured that fiscal deficit was a target that we have to bring down below three per cent in the medium term, and we’ve made good progress.
“If you go back about four years ago, our fiscal deficit over GDP was about 6.1 per cent. Last year, we came down to 4.1 per cent already, and inshallah this year, we will try to get to 3.8 per cent. So, we are on track to actually achieve the targets that we have done,” he said.
Amir said this progress was made possible by addressing wastage and leakages, as well as re-examining core principles.
“When we look at subsidy, it is important that the right people within this country receive the subsidy. That is a given.
“But we must cut out when there are leakages, when the subsidy doesn’t go to the unintended places, that we remove it back.
“And when we are able to do that, we are able to do two things — one is actually reduce the fiscal deficit, because the expenditure gets less, but the second is also reuse some of the savings, also in order to increase delivery to the rakyat,” he said.
He said the HIES results will be announced before the end of October, after it is presented to the Cabinet.
Commenting on the BUDI95 petrol subsidy scheme, which started on Saturday with police and army personnel, Amir said the government has already recorded 1.5 million users benefiting from lower petrol prices.
“It was a promise that was made by the Prime Minister — at RM1.99.
“… So the government no longer provides subsidy in that sense and that’s where savings are looking like in terms of fiscal deficits, and that’s where savings can be reused back again in terms of improving infrastructure that exists for the country.
“So for the moment, our focus is make sure the rollout is smooth sailing,” he said.
