Most countries face financial problems, fiscal deficits

KOTA BHARU: Most countries, including Malaysia, are facing financial problems and a large budget deficit due to the Covid19 pandemic, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.

However, Malaysia's forecast deficit as a percentage of the Gross Domestic Product (GDP), at six per cent, was among the lowest compared with those of other countries, he said.

“The reality is, the whole world is facing constraints and large deficits. In fact, even oil-producing nations are experiencing deficits. Some countries are recording budget deficits of about 10 per cent and even up to 15 per cent,” he told a media conference following an engagement session with the Department of Statistics Malaysia's (DOSM) Kelantan office on the state-level Malaysia Population and Housing Census 2020 (Census 2020) here yesterday.

The minister said most countries had to grapple with financial problems due to economic challenges as well as the world's largest-ever health crisis.

“That is today's reality and it's not something that can be hidden away. It is the biggest economic challenge facing Malaysia and other countries…. We are in debt because our revenue has fallen while our needs have increased and thus require a larger expenditure, as the government's priority is to look after the needs of the people,” he said.

Mustapa said regardless of the situation, the government would continue to work hard to revive the country's economy by devising various strategies, especially in creating job opportunities and empowering micro enterprises.

Last month, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz was reported as saying that Malaysia's fiscal deficit was projected to rise to six per cent of GDP this year from an earlier estimate of 5.4 per cent following the implementation of the Strategic Programme to Empower the People and Economy (PEMERKASA).

Meanwhile, elaborating on his visit to DOSM Kelantan yesterday, Mustapa said 15 million people, or 46 per cent of the country's estimated 2020 population of 32.7 million, had been enumerated under the Census 2020 exercise as of April 15.

“In terms of percentage of the population, the Federal Territory of Putrajaya (100 per cent), Johor (65.4 per cent) and Kelantan (60.9 per cent) have the highest response or enumeration rates,” he said, adding that the census process throughout the country was expected to be fully completed by June 30.

He called on Malaysians to give their cooperation either via the online census (e-Census) or face-to-face interviews due to the importance of the data collected for various purposes, particularly in national socio-economic planning.

“We expect to obtain the findings of the census before the tabling of the 12th Malaysia Plan,” he added.