Kuala lumpur: The government’s fiscal policy remains committed to supporting the country’s development objectives while ensuring that the well-being of the people continues to be a top priority, Treasury secretary-general Datuk Johan Mahmood Merican said. He emphasized the government’s dedication to responsible fiscal management while ensuring adequate fiscal support for economic growth.
According to BERNAMA News Agency, Johan stated that the government must balance fiscal objectives by providing sufficient support and expenditure to meet the needs of the rakyat, especially development needs. In an exclusive interview, he noted the importance of avoiding rapid deficit reduction to continue addressing the needs outlined in Budget 2026, marking the first spending under the 13th Malaysia Plan.
Johan highlighted the progress made by the MADANI government in fiscal consolidation since taking office, achieving a deficit reduction from 5.6 percent in 2022 to five percent in 2023, 4.1 percent in 2024, and on track to reach 3.8 percent this year. He stressed the need to manage fiscal policy responsibly to instill investor confidence while ensuring sufficient spending for people’s development.
He cited examples such as the RM66 billion spent on education this year and the RM15 billion allocated for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), double the amount in 2022. Johan also noted the strengthening of the ringgit, Malaysia’s improved standing in the IMD World Competitiveness Ranking, and higher approved investments as indicators of growing investor confidence.
Johan expressed confidence in achieving at least four percent growth next year, emphasizing the importance of maintaining an expansionary fiscal stance amid global uncertainties. He pointed out that Budget 2026 is set at RM470 billion, an increase from the previous budget’s RM452 billion.
Despite global volatility, Johan noted Malaysia’s strong economic resilience, with a recorded growth of 4.4 percent in the first half of 2025. The Department of Statistics Malaysia (DOSM) recently projected that Malaysia’s economy will expand by 5.2 percent in the third quarter of 2025, underscoring the need for adequate fiscal support to sustain growth momentum.