Malaysia's fiscal consolidation remains on track with lower 1Q deficit
KUALA LUMPUR: The federal government's fiscal deficit decreased to RM21.9 billion in the first quarter of 2025 (1Q 2025), compared to RM26.4 billion in the same period last year, indicating that fiscal consolidation remains on the right track.
The Ministry of Finance (MoF) said the lower quarterly fiscal deficit was attributed to better revenue collection and expenditure optimisation in consonance with fiscal consolidation initiatives.
The MoF today published its 1Q 2025 Malaysian Economy report, which provides an overview of the country's macroeconomic performance and fiscal position.
The report was issued quarterly and was part of the MADANI Government's commitment to greater transparency and accountability in the stewardship of public finances.
According to the report, the federal government revenue rebounded by three per cent from the corresponding quarter in 2024 to RM72.1 billion, driven by higher tax collection, particularly from a surge in sales and service tax (SST) receipts as well as higher collection of individual income tax.
Meanwhile, total expenditure contracted by 2.5 per cent to RM94.2 billion, due primarily to lower subsidy spending following the implementation of the diesel subsidy retargeting programme as well as lower global oil prices.
"Nevertheless, targeted social assistance programmes including Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), Fish Landing Incentive and Paddy Price Subsidy Scheme have been strengthened.
"In addition, grants to statutory bodies were optimised due to operational efficiency and effectiveness of the agencies,' the ministry said.
Malaysia's real gross domestic product (GDP) grew by 4.4 per cent, outstripping the 4.2 per cent recorded in the corresponding quarter last year, driven by resilient domestic demand and sustained recovery across key sectors such as services, manufacturing and construction.
The full 1Q 2025 Malaysian Economy report can be accessed at the MoF's official website: https://mof.gov.my/portal/pdf/ekonomi/suku-tahunan/. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
4 hours ago
- The Sun
PM expresses appreciation, applauds successful organisation of LIMA'25, ASEAN Summits
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has expressed his heartfelt appreciation to all parties involved in the successful organisation of the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA'25) and the 46th ASEAN Summit and Related Summits last month. Communications Minister Fahmi Fadzil, who is also MADANI Government spokesperson, said Anwar conveyed the appreciation message during today's Cabinet meeting, describing both events as historic milestones for Malaysia. 'The Prime Minister deeply values the efforts of all personnel and teams involved in organising LIMA'25 in Langkawi, as well as the ASEAN Summit and Related Summits in Kuala Lumpur, at the end of May. 'Most heads of state and government leaders expressed their satisfaction with the warm hospitality and thorough preparations by Malaysia as the host,' Fahmi said at his weekly press conference. Fahmi said that the Prime Minister is currently considering appropriate forms of recognition to honour the dedication and commitment shown by all parties involved, with a formal announcement to be made in due course. 'Insya-Allah, several options are being considered, and we leave it to the Prime Minister to make the official announcement,' he said. LIMA'25 in Langkawi gathered 860 exhibitors from 24 countries, comprising 426 international and 434 local companies. Themed 'Today's Innovation, Tomorrow's Achievements', this year's edition was the largest maritime and aerospace exhibition in Southeast Asia since LIMA's inception in 1991. In Kuala Lumpur, apart from the 46th ASEAN Summit, two high-level meetings were also successfully held last month, namely the ASEAN-Gulf Cooperation Council (GCC) Summit and the first ASEAN-GCC-China Summit. The inaugural trilateral summit between ASEAN, GCC and China, which was also attended by Chinese Premier Li Qiang, not only marked a new chapter of strategic ties but also showcased Malaysia's commitment to enhancing regional economic cooperation. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Fahmi noted that the successful organisation of LIMA'25 and the 46th ASEAN Summit and Related Summits forms a strong foundation for Malaysia's hosting of the 47th ASEAN Summit in October under its 2025 ASEAN Chairmanship theme 'Inclusivity and Sustainability'.
Barnama
4 hours ago
- Barnama
PM Expresses Appreciation, Applauds Successful Organisation Of LIMA'25, ASEAN Summits
GENERAL PUTRAJAYA, June 5 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has expressed his heartfelt appreciation to all parties involved in the successful organisation of the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA'25) and the 46th ASEAN Summit and Related Summits last month. Communications Minister Fahmi Fadzil, who is also MADANI Government spokesperson, said Anwar conveyed the appreciation message during today's Cabinet meeting, describing both events as historic milestones for Malaysia. 'The Prime Minister deeply values the efforts of all personnel and teams involved in organising LIMA'25 in Langkawi, as well as the ASEAN Summit and Related Summits in Kuala Lumpur, at the end of May. 'Most heads of state and government leaders expressed their satisfaction with the warm hospitality and thorough preparations by Malaysia as the host,' Fahmi said at his weekly press conference. Fahmi said that the Prime Minister is currently considering appropriate forms of recognition to honour the dedication and commitment shown by all parties involved, with a formal announcement to be made in due course. 'Insya-Allah, several options are being considered, and we leave it to the Prime Minister to make the official announcement,' he said. LIMA'25 in Langkawi gathered 860 exhibitors from 24 countries, comprising 426 international and 434 local companies. Themed 'Today's Innovation, Tomorrow's Achievements', this year's edition was the largest maritime and aerospace exhibition in Southeast Asia since LIMA's inception in 1991. In Kuala Lumpur, apart from the 46th ASEAN Summit, two high-level meetings were also successfully held last month, namely the ASEAN-Gulf Cooperation Council (GCC) Summit and the first ASEAN-GCC-China Summit.
The Sun
5 hours ago
- The Sun
PM praises success of LIMA'25, ASEAN Summits
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has expressed his heartfelt appreciation to all parties involved in the successful organisation of the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA'25) and the 46th ASEAN Summit and Related Summits last month. Communications Minister Fahmi Fadzil, who is also MADANI Government spokesperson, said Anwar conveyed the appreciation message during today's Cabinet meeting, describing both events as historic milestones for Malaysia. 'The Prime Minister deeply values the efforts of all personnel and teams involved in organising LIMA'25 in Langkawi, as well as the ASEAN Summit and Related Summits in Kuala Lumpur, at the end of May. 'Most heads of state and government leaders expressed their satisfaction with the warm hospitality and thorough preparations by Malaysia as the host,' Fahmi said at his weekly press conference. Fahmi said that the Prime Minister is currently considering appropriate forms of recognition to honour the dedication and commitment shown by all parties involved, with a formal announcement to be made in due course. 'Insya-Allah, several options are being considered, and we leave it to the Prime Minister to make the official announcement,' he said. LIMA'25 in Langkawi gathered 860 exhibitors from 24 countries, comprising 426 international and 434 local companies. Themed 'Today's Innovation, Tomorrow's Achievements', this year's edition was the largest maritime and aerospace exhibition in Southeast Asia since LIMA's inception in 1991. In Kuala Lumpur, apart from the 46th ASEAN Summit, two high-level meetings were also successfully held last month, namely the ASEAN-Gulf Cooperation Council (GCC) Summit and the first ASEAN-GCC-China Summit. The inaugural trilateral summit between ASEAN, GCC and China, which was also attended by Chinese Premier Li Qiang, not only marked a new chapter of strategic ties but also showcased Malaysia's commitment to enhancing regional economic cooperation. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Fahmi noted that the successful organisation of LIMA'25 and the 46th ASEAN Summit and Related Summits forms a strong foundation for Malaysia's hosting of the 47th ASEAN Summit in October under its 2025 ASEAN Chairmanship theme 'Inclusivity and Sustainability'.
