Other revenue sources may cover higher fiscal deficit in Malaysia

Kuala Lumpur

ALTHOUGH heavy election spending ballooned Malaysia's fiscal deficit to an alarming 5.6 per cent of GDP in the first half, its 3.1 per cent target for the year can still be achieved because of "additional revenue-enhancing measures", economists say.

But unless oil prices recover significantly, they say Putrajaya will have to run a tight ship going forward, having already squeezed as much as it can from industries and companies.