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 is the revised target for the fiscal deficit by 2020?

• 5%

• 0%

• 1%

• 3%

Why does the speaker believe a credit rating downgrade is undeserved?

• The government is hiding liabilities.

• The fiscal deficit is already zero.

• The government is being transparent and controlling the budget.

• The debt level is extremely high.

How does the speaker describe Malaysia's debt level by international standards?

• Very high

• Very low

• Moderate

• Unmanageable

What factor is expected to benefit Malaysia's budget during the adjustment period?

• Increasing oil prices

• Higher taxes

• Decreasing oil prices

• Rising inflation

What is one of the strategies mentioned to trim down the budget?

• Reducing oil exports

• Suspending mega projects

• Increasing foreign debt

• Increasing public sector wages