Malaysia still has some fiscal space to manage the challenges of price pressures given the country's debt to gross domestic product (GDP) ratio is at 60 percent.

Finance Minister Tengku Zafrul Abdul Aziz said there is still fiscal space as the government has increased the statutory debt ceiling limit to 65 percent of GDP from 60 percent previously.

The government has also maintained the deficit target at six percent of GDP, he added.

“We have inflation...