Fiscal Policy In Malaysia 2020

In light of the emerging risks it is clear that the fiscal policy needs to go further beyond the february stimulus package in safeguarding the livelihoods of the rakyat.

Fiscal policy in malaysia 2020. The decision came amid growing risks to the outlook from the coronavirus. Not for publication or broadcast before 1500 hours on tuesday 03 march 2020 at its meeting today the monetary policy committee mpc of bank negara malaysia decided to reduce the overnight policy rate opr by 25 basis points to 2 50 percent. In an interview. At its 2 3 march meeting the monetary policy committee of bank negara malaysia bnm voted to lower the overnight policy rate opr by 25 basis points to 2 50 while the ceiling and floor of the opr corridor were reduced to 2 75 and 2 25 respectively.

Feb 12 2020. Fiscal expenditure in malaysia decreased to 59957 90 myr million in the third quarter of 2020 from 64626 40 myr million in the second quarter of 2020. Deficit seen averaging 2 8 over the medium term state energy firm petronas to pay dividend of 24 billion ringgit in 2020. Malaysia s debt levels are expected to rise this year at a fiscal deficit of an estimated 5 8 to 6 said finance minister tengku datuk seri zafrul abdul aziz.

Like the rest of the world malaysia s economy risks a very protracted depression from the coronavirus crisis without sufficient measures to boost spending and investments says jomo kwame. Fiscal deficit for 2020 seen at 3 2 wider than initial target of 3. Malaysia widens fiscal deficit target after covid 19 stimulus measures monday 30 mar 2020 06 14 pm myt datuk seri tengku zafrul tengku abdul aziz is pictured at dewan negara after being sworn in as senator march 10 2020. Hence we maintain our full year gdp forecast of 4 5 yoy for 2020.

After all the current covid 19 crisis will eventually be conquered through vigorous public health efforts but without a sufficiently large and forceful fiscal response the economic scars it leaves behind will be viciously. The move had been expected by market analysts.