Malaysia Should Try to Contain 3% Fiscal Deficit for 2019, Says Asean +3 Macroeconomic's Khor

The discussion focuses on Malaysia's fiscal consolidation efforts, highlighting that the current fiscal adjustments are temporary due to uncovered hidden liabilities. The government aims to reach a 3% fiscal deficit by 2020, adjusting previous ambitious targets. Transparency is emphasized to avoid credit rating downgrades, and the current debt level is moderate by international standards. The government is realistic about the timeline, aiming to balance the budget in the next two years, aided by stronger oil prices and potential expenditure cuts.

What factors are contributing to the government's decision to stretch the timeline for fiscal consolidation?

What impact do stronger oil prices have on Malaysia's budget management?