Economic Research
|
13
March 2017
|
Malaysia
|
|
Economic Update
|
|
We had a meeting with the Ministry of Finance (MOF)
on 10 Mar 2017, from which there were some key takeaways, as listed
below.
These are:
i.
We believe there is no issue for the MOF to bring
down its budget deficit for 2017 to its target of 3% of GDP and maintain its
borrowings below 55% of GDP;
ii.
The windfall from higher oil prices would likely be
spent to spur economic growth during the year;
iii.
It prefers to be conservative in its GST collection
for 2017 despite the higher-than-expected collection in 2016;
iv.
The ministry expects the Malaysian economy to pick
up to 4-5% in 2017, on the back of a recovery in external activities and
resilient private spending – albeit at a slower pace compared to the previous
year.
v.
The MOF intends to focus its expenditure on spurring
private spending and private investment, as they are the main drivers of the
economy.
|
Monday, March 13, 2017
No Issue In Achieving Deficit Target Amid Higher Oil Price
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.