Strong fiscal position strengthens nation’s economic resilience
In addition, the national fiscal policy continues to emphasise on consolidation measures towards achieving a near-balanced budget by 2020. Datuk Othman Aziz, Deputy Finance Minister
BANGI: A strong fiscal position can strengthen the nation’s economic resilience, while providing the space and flexibility to implement counter cyclical measures to support the economy in times of crisis.
Deputy Finance Minister Datuk Othman Aziz said the national fiscal policy supported and maintained the momentum of the country’s economic growth and increase its competitiveness, while ensuring the people’s wellbeing.
“In addition, the national fiscal policy continues to emphasise on consolidation measures towards achieving a near-balanced budget by 2020,” he said at the launch of the 12th Malaysia National Economic Conference yesterday.
His speech was read by Treasury Deputy Secretary- General (Investment) Datuk Seri Dr Mohd Isa Hussain.
Othman said the commitment to reduce the deficit and debt levels was important to ensure the country’s long- term fiscal sustainability.
Being an open economy, Malaysia is exposed to external challenges, such as policy and political uncertainties following the US presidential election, China’s slowing economy and the United Kingdom’s decision to withdraw from the European Union, he added.
“However, the economic, financial and fiscal structure reforms, which have been implemented, provide adequate buffers to deal with the external challenges, such as controlled inflation rate, suf f icient foreign reserves and a strong financial system with effective intermediation to support the nation’s economic growth,” he said.
Othman said the effectiveness of the measures was proven by various international indexes which gauged Malaysia’s achievements.
“This brushes aside a claim that Malaysia is a failed state. In fact, Malaysians are able to build a better life compared to that of other nations,” he said.
The two- day conference, which ends tomorrow, gathers academicians, policymakers, practitioners and researchers to exchange views on pragmatic measures to deal with current socio- economic issues. — Bernama