KUALA LUMPUR: The government will uphold a sound fiscal policy to support a sustainable growth momentum and improve the well-being of the rakyat in line with the Madani Economy framework.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, said the framework, among others, focuses on achieving fiscal resilience and sustainability with a fiscal deficit target of three per cent in the coming years.

"It also aims to transform the Malaysian economy, catapulting it to the top 30 largest economies within 10 years," he said in the 2024 Fiscal Outlook and Federal Government Revenue Estimates report released today.

Anwar said collectively, the National Energy Transition Roadmap, the New Industrial Master Plan 2030 and the 12th Malaysia Plan (2021-2015) Mid-Term Review will consolidate a whole-of-government effort to shape Malaysia into a formidable economy and a leading player in Asia.

Meanwhile, he noted that Malaysia's economic growth has demonstrated remarkable steadfastness and resilience, registering an 8.7 per cent increase in 2022.

"This momentum has continued in 2023, albeit at a slower pace, recording a moderate growth of 4.2 per cent in the first half due to sluggish global economic and trade growth.

"Domestic spending continues to drive the momentum, underpinned by strong economic fundamentals," he said.

For 2024, Anwar said the fiscal outlook will prioritise countercyclical measures to address external headwinds and support initiatives towards a new economic horizon.

"As the government navigates these challenges and opportunities, we remain committed to achieve a lower fiscal deficit of 4.3 per cent through fiscal consolidation," he stated.

He added that the government is determined to uphold responsible and pragmatic public finance practices in rebuilding fiscal buffers and to reduce exposure to debt and liabilities, while pursuing growth and socio-economic developments.

The government will also undertake bold fiscal reform measures to further strengthen revenue management and mobilisation, along with efforts to reduce wastages and leakages, as well as to optimise spending, he said.

In this regard, the impending enactment of the Public Finance and Fiscal Responsibility Act will solidify government efforts to enhance governance, accountability and transparency in public finance management, he said.

He also said in an unpredictable global economy, the need for a robust financial strategy and prudent fiscal management cannot be understated.

Anwar said the report also underscores the government's commitment to maintain a high standard of fiscal transparency and governance.

"Ultimately, I reaffirm our commitment to enhance fiscal sustainability.

"Together, we will overcome challenges, seize rising opportunities and pave the way to an era of sustainable growth that benefits all Malaysians, in line with the vision of Malaysia Madani," he added.

-- BERNAMA