The government is in the midst of developing a Medium-Term Revenue Strategy (MTRS) and implementing a Public Expenditure Review to boost the country’s revenue while ensuring efficient management of the government’s expenditure.
Deputy Finance Minister I, Datuk Mohd Shahar Abdullah said these measures are expected to strengthen the country’s financial position to ensure that the government’s debts remain sustainable in the medium and long term.
“Currently, the government is using the Medium-Term Fiscal Framework as a guide in formulating strategies towards medium-term fiscal consolidation for a period of three to five years, in line with the 12th Malaysia Plan.
“Additionally, the enactment of the Fiscal Responsibility Act is expected to strengthen governance, transparency of public financial management, and government fiscal discipline,” he said.
As of end-December 2021, the Federal Government’s total debt stood at RM979.8 billion or 63.4 per cent of Gross Domestic Product, while the statutory debt ratio includes Malaysian Government Securities, Malaysian Government Investment Issue, and Malaysian Islamic Treasury Bills was 59.7 per cent of the GDP.
Meanwhile, Mohd Shahar said 6.3 million Employees Provident Fund (EPF) members are expected to benefit from the government’s decision to allow a one-off withdrawal of RM10,000 from their respective EPF accounts.
“This means that a total of RM63 billion will be channelled to the people, naturally their purchasing power will increase and this will have a direct impact on the country’s economy,” he said.
However, he noted that this would affect the EPF’s investment ability in the short term.
As such, the pension fund will rebalance its portfolio to reduce the impact on investment performance, the deputy minister said, adding that the EPF is committed to ensuring that its members’ retirement funds remain secure.
