Malaysia: Staff Report for the 2013 Article IV Consultation

IMF Staff Country Reports, March 14, 2014

Source details

The IMF staff report focuses on Malaysia’s economic developments and policies during 2013 and assesses prospects going forward.
Continued growth in domestic demand, especially investment, and a pickup in external demand are expected to help maintain robust growth despite fiscal tightening.
Amid concerns about Malaysia’s public finances and a sharp narrowing of the external surplus in spring–summer of 2013, authorities took timely action to secure fiscal sustainability and assure markets.
The report suggests that authorities’ 2013 decisions are close to a fiscal policy breakthrough aimed at containing federal debt and related fiscal risks.

Growth drivers:
- Continued growth in domestic demand, with particular emphasis on investment.
- A pickup in external demand supporting growth prospects.
Fiscal and external developments:
- Fiscal tightening was occurring alongside efforts to secure fiscal sustainability.
- A sharp narrowing of the external surplus occurred in spring–summer of 2013.
Policy assessment:
- Authorities’ actions in 2013 are characterized as timely and aimed at containing federal debt and fiscal risks.
- The report frames 2013 decisions as close to a fiscal policy breakthrough.

Subject tags: Fiscal consolidation, Fiscal policy, Inflation, Prices, Revenue administration, Taxes, Value-added tax
Keywords: Asia and Pacific, CR, data standard, exchange arrangement, Fiscal consolidation, Global, household debt, Inflation, ISCR, market distortion, policy, policy flexibility, policy issue, policy stance, public finance, regulation, Value-added tax

Fiscal Policy Committee
- Fiscal Policy Committee (Markdown version)
- Fiscal Policy Committee (PDF)