Kuala lumpur: CGS International Securities Malaysia Sdn Bhd has expressed confidence in Malaysia’s ability to achieve its targeted average GDP growth of 4.5-5.5 per cent under the 13th Malaysia Plan (13MP), along with a fiscal deficit target of three per cent of GDP by 2030.

According to BERNAMA News Agency, CGS highlighted Malaysia’s historical GDP growth, which averaged 4.6 per cent following the Global Financial Crisis (2010-2024), or 5.3 per cent excluding the pandemic year of 2020, as an indicator of the country’s potential to meet these targets. The fiscal deficit target is said to be in alignment with the medium-term goals set forth in the Public Finance and Fiscal Responsibility Act.

CGS remarked that while the fiscal deficit reduction under the 13MP may seem slower compared to recent years (2021-2024: -6.4 per cent to -4.1 per cent), this approach is seen as sensible. The need to bolster economic growth amid tariff-related challenges was noted as a reason for the gradual consolidation. Measures such as the expanded sales and service tax scope and rationalisation of subsidies on diesel and eventually RON95 are expected to alleviate fiscal deficit pressures amidst softer economic growth, highlighting the significance of the MADANI government’s reform agenda.

In a separate note, CGS acknowledged that the 13MP effectively balances the priorities of various economic stakeholders while offering investors sufficient clarity on Malaysia’s medium-term prospects. The plan is seen as paving the way for future federal budgets, with Budget 2026 anticipated to reflect elements of the 13MP, including potentially slower growth in development expenditure and a heightened focus on newly identified priority sectors.

Overall, CGS maintains its 2025 GDP growth forecast of 4.2 per cent year-on-year, anticipating that the 13MP will steer the country’s economic trajectory in a positive direction.