Malaysia’s fiscal reforms set to lower federal debt ratio to 63.7pc by 2027, says Treasury sec-gen

KUALA LUMPUR, Nov 12 — The Madani government is committed to gradually reducing the fiscal deficit from 5.5 per cent of gross domestic product (GDP) in 2022 to 3.3 per cent in 2027.

Treasury secretary-general Tan Sri Johan Mahmood Merican said the reduction in the fiscal deficit reflects the government’s commitment to strengthen the country’s financial position, thereby helping to lower the ratio of the federal government’s debt to GDP.

He said the ratio of the federal government’s debt to GDP, which was 65.2 per cent at the end of 2025, was projected to decrease to 64 per cent at the end of this year and further to 63.7 per cent in 2027.

“This is part of the government’s efforts to carry out fiscal reforms to ensure that the level of debt is at the appropriate level,” he told reporters at Deloitte’s 52nd TaxMax conference here today.