Headwinds make markets more forgiving of a missed KL fiscal deficit target

Kuala Lumpur

GIVEN the prevailing economic headwinds, analysts do not think Malaysia would be unduly faulted should it not meet its objective of a balanced budget by 2020 so long as it continues to trim the fiscal deficit.

Their comments come on the heels of Prime Minister Najib Razak acknowledging Malaysia would not likely meet its objectives of a balanced budget in the five years remaining.

Even so, he said the deficit would not be too large, at around one per cent of gross domestic product (GDP), and reiterated a commitment to achieving a balanced budget during an add…