Malaysia's Fiscal Discipline Cushions Impact Of Eurozone Crisis

KUALA LUMPUR, March 22 (Bernama) -- Malaysia has exercised better fiscal discipline which helped cushion the impact of the Eurozone crisis and a weakening of the global economy, says Malaysian Deputy Prime Minister, Muhyiddin Yassin. Speaking at the Ministerial Luncheon for Corporate Leaders here Thursday, he said there were concerns that the two factors would impact the country's economy, and the Government Transformation Programme (GTP) in particular. He said one of the 51 Strategic Reform Initiatives (SRI) under GTP, the Public Finance SRI, was introduced to maximise revenue generation and cost savings over a period of five years. "There is an urgent and compelling need to bridge the gap between spending and revenue," he added. The initiative would help the government manage contingencies, pay debts and invest for the future, Muhyiddin said. "This is why the government is undertaking a comprehensive review of all government spending and the need to rationalise subsidies," he added. At the same time, he said it is important to reflect on what has happened to the country's economy, and draw necessary lessons from it. The Ministerial Luncheon, attended by about 240 business people, was organised by the Malaysian Institute of Management (MIM). -- BERNAMA