IMF Praises Malaysia’s Fiscal Discipline and Economic Reforms under MADANI Framework


KUALA LUMPUR, El Sky News – The International Monetary Fund (IMF) has officially commended Malaysia’s economic trajectory, citing the nation’s stringent fiscal discipline and steadfast commitment to structural reforms.

Finance Minister II, Datuk Seri Amir Hamzah Azizan, noted that the IMF’s latest assessment serves as a validation of the government’s prudent financial management and the strategic direction set under the “Ekonomi MADANI” framework.

Strengthening Fiscal Responsibility

A cornerstone of this positive evaluation is the Public Finance and Fiscal Responsibility Act 2023. According to the IMF, this legislation, coupled with a steady reduction in the national deficit since 2022, demonstrates Malaysia’s resolve in maintaining long-term economic stability.

The IMF’s Mission Chief for Malaysia, Masahiro Nozaki, highlighted that the government’s roadmap to further narrow the fiscal deficit is well-aligned with international best practices. The government aims to reach:

  • 3.5% of GDP by 2026.
  • 3.0% of GDP by 2028.

Robust Economic Indicators

Despite global uncertainties, Malaysia’s domestic economy remains resilient. Minister Amir Hamzah highlighted several key performance indicators:

  • Currency Performance: The Malaysian Ringgit has emerged as a top-performing currency in the region.
  • Controlled Inflation: Inflation remained stable at an average of 1.4% (January–October 2025).
  • Investment Influx: Approved foreign investments have reached record highs, signaling strong international investor confidence.

Transparency and Governance

Beyond fiscal numbers, the IMF also welcomed the passing of the new Government Procurement Act. This move is expected to enhance transparency and ensure that public funds are utilized with maximum efficiency.

“With the 13th Malaysia Plan (RMK-13) on the horizon and our upcoming leadership role in ASEAN, Malaysia is strategically positioned to navigate global headwinds while fostering inclusive growth,” Amir Hamzah stated via a recent update.

The IMF concluded that Malaysia’s current monetary policy stance is appropriate, providing a solid foundation for the country to return to its long-term inflation average of 2.0% while sustaining growth.

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