Report: Malaysia’s economic growth may allow PM Anwar to delay subsidy cuts
Malaysia’s economy is experiencing faster-than-expected growth this year, potentially allowing Prime Minister Datuk Seri Anwar Ibrahim to postpone plans to cut blanket subsidies for RON95 gasoline, business news outlet Bloomberg reported.
(MMO) – Maybank Investment Bank Bhd’s chief economist, Suhaimi Ilias said Malaysia could still narrow its fiscal deficit to 4.3 per cent of GDP this year, even if the subsidy cuts are delayed to 2025.
“This is especially true if annual GDP exceeds the official 4 per cent to 5 per cent forecast, as that would translate to more revenue,” Suhaimi told Bloomberg.
Analysts at Citigroup Inc. have already raised their growth forecast for Malaysia to 5.2 per cent after the nation reported a quicker-than-anticipated expansion last quarter.
“The economy is essentially firing on all cylinders,” Suhaimi was reported saying.
