Prime Minister Anwar Ibrahim stated that the Malaysian government is gradually reducing the fiscal deficit to decrease the national debt burden. A sudden reduction could impact allocations for education, Sumbangan Tunai Rahmah (STR) assistance, and healthcare. The deficit decreased from 5.5% of GDP in 2022 to a projected 4.1% in 2024. This phased approach aims to control rising debt, with new debt falling from RM100 billion in 2021 to a projected RM76.8 billion in 2024. Increased allocations for STR, education, and healthcare have boosted investor confidence.
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