Malaysian Govt Opted For Balanced Debt-To-Equity Model In 2015

KUALA LUMPUR, April 27 (Bernama) -- The government chose to be prudent and avoid over-borrowing to finance short-term growth by instead adopting a balanceddebt-to-equity model to stimulate economic growth and reduce deficits in 2015. Minister in the Prime Minister's Department Abdul Wahid Omar said that due to the high amount of trade occurring with the rest of the world, Malaysia's economy had been vulnerable to the global crisis. "One of the most crucial areas to address would be the twin challenges of mounting debt and deficit, which would lead government finances into an untenable situation if nothing was done. "The government was also painfully aware that the success of the national transformation policy and ability to maintain a high income status thereafter, hinged upon getting its finances in order," he said in the National Transformation Programme Annual Report 2015 released Tuesday. Well aware of the challenges ahead, Wahid said tough policy decisions were made and Malaysia's fiscal consolidation was rolled out in the last five years. This, he said, included the rationalisation exercise to dismantle blanket subsidies and create targeted safety nets to streamline government expenditure as well as implementation of the Goods and Services Tax in April 2015. To realise private sector-driven growth, the government, through the 12 National Key Economic Areas (NKEAs), offered private sector involvement and investment opportunities through entry point projects (EPPs). "To date, 149 EPPs have been announced, guiding the development of the industry or sector and were formulated through public and private sector consultations during labs held in 2010," Wahid said. -- BERNAMA