KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Malaysia is pressing ahead with fiscal reforms to narrow its deficit and rein in government borrowing, as part of a broader effort to strengthen public finances and reduce rising debt-servicing costs, Deputy Finance Minister Liew Chin Tong said in Parliament on Thursday.
The reforms are anchored under the Public Finance and Fiscal Responsibility Act (Act 850), which has already delivered tangible results. Annual new government borrowing has been reduced from RM100 billion in 2021–2022 to around RM75 billion in 2025, reflecting stronger fiscal discipline and consolidation.
To sustain this trajectory, the government is broadening its revenue base and improving collection efficiency through measures such as expanding the sales and services tax (SST), rolling out e-invoicing, and tightening expenditure via targeted diesel and RON95 fuel subsidies. Authorities are also moving to rationalise statutory bodies to improve spending efficiency.
Borrowing will now be strictly limited to development expenditure, focusing only on projects and programmes that deliver long-term economic gains. In parallel, the government has imposed a cap on financial guarantee exposure at 25% of GDP, ensuring fiscal risks remain manageable and aligned with the country’s economic capacity.
Further efforts include prioritising user-pay projects under the Public-Private Partnership (PPP) Master Plan 2030, alongside a review of off-budget financing methods to improve transparency and fiscal sustainability.
Quick Summary
Government is tightening fiscal discipline to cut deficit and borrowing
Annual borrowing reduced to ~RM75b in 2025, from RM100b previously
Revenue boosted via SST expansion and e-invoicing
Subsidies becoming more targeted and efficient
Borrowing limited to growth-enhancing development projects
Malaysia is committing to fiscal consolidation by cutting borrowing, widening revenue sources, and tightening spending controls to strengthen long-term financial health.
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