KUALA LUMPUR — Malaysia’s economic policies continue to receive positive international recognition as the International Monetary Fund (IMF) commended the country’s prudent fiscal management and ongoing structural reforms, reflecting growing confidence in Malaysia’s long-term economic direction.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the IMF assessment demonstrates acknowledgment of Malaysia’s disciplined approach in managing public finances and reducing the fiscal deficit while sustaining economic momentum under the MADANI framework.
He noted that Malaysia’s economic strength is reinforced by favourable indicators such as stable inflation levels, a resilient ringgit, strong approved foreign investments and comprehensive long-term development strategies.
IMF Mission Chief Masahiro Nozaki stressed that Malaysia’s fiscal consolidation progress has been consistent since 2022, with gradual but steady deficit reduction. He said IMF staff supports Malaysia’s commitment to further lowering the fiscal deficit to 3.5 percent of GDP in 2026 and 3.0 percent by 2028.
However, he emphasised the importance of continuing to rebuild fiscal buffers, given that federal government debt remains above pre-pandemic levels. He welcomed ongoing efforts to strengthen fiscal transparency and improve spending efficiency, particularly with the introduction of the new Government Procurement Act.
The IMF also highlighted Malaysia’s stable inflation outlook, averaging 1.4 percent for January to October 2025, and anticipates inflation will gradually normalise to its long-term average of around 2.0 percent. In line with this, the IMF assessed that Malaysia’s current monetary policy stance is appropriate.
Overall, the IMF’s positive assessment reinforces confidence that Malaysia is progressing steadily toward sustainable growth, fiscal resilience and stronger economic governance.