BMI, a Fitch Solutions company, has maintained its forecast that Malaysia’s fiscal deficit will narrow to 4.3 percent of gross domestic product (GDP) this year from five percent in 2023.

The research firm said the country’s public finances are expected to remain on a path of consolidation over the coming quarters, driven by a continued broadening of the tax base while the government continues to rein in spending.

“The budget, which was passed in the Dewan Rakyat in November 2023, marks a positive step...