Malaysia can meet 3.1 pct fiscal deficit target: Johari

Malaysia is able to meet its fiscal deficit target of 3.1 per cent by end-2016 as the country has strong economic fundamentals, said Deputy Finance Minister Datuk Johari Abdul Ghani.

"Look at our financial system, it is very solid, very resilient, while in our current economic scenario, we are quite confident that we will able to achieve the target," he said.

Johari was speaking to reporters after the launch of Credit Guarantee Corporation Malaysia Bhd's (CGC) BizWanita direct financing product here today.

He said this when asked to comment on Fitch Ratings' warning that Malaysia may miss its fiscal deficit reduction target next year.

The rating agency said Malaysia's 2016 budget shortfall could exceed Prime Minister Datuk Seri Najib Tun Razak's estimate of 3.1 per cent of gross domestic product due to falling commodities.

"There is one year to go. There is no sign that will affect (our economic condition)," said Johari.

On CGC's BizWanita, he said it was one of the efforts at assisting the government in alleviating the status of the Bottom 40 (B40) group in the country.

"The government is focusing on how to increase the earnings of the B40 segment. One of the strategies is focusing on entrepreneurship," he added.

Johari said CGC's facilities like BizWanita would help women entrepreneurs obtain loans from the financier.

Earlier in his speech, Johari said access to financing was repeatedly identified as one of the major concerns of women entrepreneurs and BizWanita was much welcomed in improving their access to financing.

He added through various feedback and further understanding of women entrepreneurs' financing needs, it was found that they were frequently the primary beneficiaries of microfinance.

"While this type of support is undeniably important in the early stages, some women entrepreneurs still face challenges once their company expands and their financing needs exceed micro-credit ceiling.

"They may then be confronted with hurdles such as insufficient track record to avail themselves to much higher financing," said Johari.

As of end-July 2015, total outstanding loans by the banking system increased to RM1.4 trillion while the outstanding amount of the Small and Medium Enterprises financing stood at RM247.6 billion.