Kuala lumpur: The International Monetary Fund's (IMF) recent evaluation of Malaysia's economic performance highlights the country's prudent fiscal management and its dedication to structural reforms as outlined in the MADANI Economy framework, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

According to BERNAMA News Agency, the IMF has acknowledged key initiatives such as the Public Finance and Fiscal Responsibility Act 2023 and the government's strategic plan to lower the fiscal deficit. This recognition underscores Malaysia's commitment to fiscal discipline, long-term stability, and sustainable growth.

Amir Hamzah noted that with low inflation rates, the ringgit's strong performance, and record levels of foreign investments, Malaysia is equipped to handle global uncertainties. The country's forward-looking initiatives under the 13th Malaysia Plan aim to foster inclusive development and enhance ASEAN integration.

IMF Mission Chief for Malaysia, Masahiro Nozaki, mentioned during discussions with Malaysian authorities that the country's dedication to prudent fiscal management is evident from the landmark Public Finance and Fiscal Responsibility Act 2023 and the steady reduction of the fiscal deficit since 2022. The IMF staff welcomed Malaysia's plan to further reduce the fiscal deficit to 3.5% of GDP by 2026 and 3.0% by 2028.

Nozaki emphasized the importance of rebuilding fiscal buffers through sustainable revenue and expenditure measures, as the federal government debt remains above pre-pandemic levels at 64.6% of GDP by the end of 2024. The IMF also supports efforts to enhance fiscal transparency and spending efficiency, including the new Government Procurement Act. Inflation, which averaged 1.4% from January to October 2025, is expected to stabilize and gradually return to its long-term average of 2.0%.

In this regard, Nozaki stated that the IMF staff considers the current monetary policy stance to be appropriate.