Malaysia spends over 80 bln USD to revive economy

Illustrative image (Photo: Internet)

Kuala Lumpur (VNA) – The Malaysian Government has taken an expansionary fiscal policy approach since the COVID-19 crisis hit the country.

Over 330 billion RM (82.5 billion USD), or 62 percent of the total 550 billion RM allocated by the government under eight economic stimulus and aid packages that have been utilised, benefiting 20 million Malaysians and 2.4 million businesses as of September 24.

Speaking at a parliament’s meeting on October 5, Malaysian Finance Minister Tengku Zafrul said based on the Budget 2021, the deficit is projected to be at 6.5-7 percent of the gross domestic product (GDP).

To accommodate the additional fiscal injections specifically to address the COVID-19 crisis, the Government had financed economic stimulus packages through the COVID-19 Fund.

As of mid-September 2021, the total amount spent under the fund has reached 60 billion RM, or more than 90 percent of the fund’s current ceiling cap of 65 billion RM.

Given the need for additional expenditure, the Government will be tabling the proposal to increase the ceiling cap for the COVID-19 Fund from 65 billion RM to 110 billion RM to finance the additional aid and support measures for this year and beyond./.