COMMENT | On Aug 31, 2021, the Ministry of Finance (MOF) released a Pre-Budget Statement (PBS) for the first time in the country’s history. Refsa welcomes the publication of the statement as a step forward in promoting transparency and reducing uncertainty in the fiscal policy sphere.

We hope that the PBS reflects the MOF's concerted effort to continue engaging with civil society to promote inclusiveness in policymaking.

Here is Refsa's take on the PBS by section:

Economic outlook and fiscal position

The MOF has rightly adopted a cautiously optimistic approach in its macroeconomic outlook for 2021/22 in line with Bank Negara Malaysia’s downward revision of its GDP forecast to 3-4 percent for 2021.

Nevertheless, at this juncture, it is important to reiterate that the country’s economic recovery for 2021 and beyond is strongly predicated on an improvement in the management of the domestic pandemic situation.

As Refsa recently highlighted, Malaysia’s solid export performance alone...