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MALAYSIA’S financial management must be conducted with prudence and discipline in accordance with the spirit of the Public Finance and Fiscal Responsibility Act 2023 (FRA), said the Minister of Finance.
“I emphasised this during the Fiscal Policy Committee (FPC) meeting, an important platform for formulating clear fiscal policies and setting the nation’s economic direction,” Prime Minister Datuk Seri Anwar Ibrahim said.
He noted that the MADANI Government must continue balancing the need to sustain economic growth momentum with ensuring the nation’s fiscal position remains sustainable—particularly in the face of ongoing global economic uncertainty.
Despite persistent global volatility, Malaysia’s economy has remained resilient, recording a 4.4% growth rate in the first half of 2025. The unemployment rate has also declined to 3%, the lowest level in a decade.
At the same time, the Government has successfully reduced the fiscal deficit from 5.5% of GDP in 2022 to 4.1% in 2024—a milestone that reflects its strong commitment to responsible fiscal management.
Meanwhile, the Unity Government Leadership Consultative Council, chaired by Anwar, convened on Tuesday and agreed on several resolutions to strengthen government accountability, economic focus, and inter-party collaboration ahead of upcoming political challenges.
In a statement, Dr Asyraf Wajdi Dusuki, Chief Secretariat of the Unity Government Leadership Consultative Council emphasised that the mid-term review of the Unity Government’s achievements—currently underway at Cabinet level—must also be presented to the Council itself. This, it said, is necessary to reflect the collective agreements made and to honour the differing perspectives of the coalition’s component parties.
The Council further agreed on the importance of evaluating the government’s overall performance, while taking into account all criticisms directed at the administration. It also acknowledged the ongoing efforts to bolster the national economy and implement welfare programmes aimed at improving the quality of life for the public.
Ahead of the Sabah state election, the Council was informed of the establishment of a Technical Committee to explore avenues for cooperation among Unity Government parties in the state.
In closing, the meeting recorded its congratulations to Malaysia and the Prime Minister for successfully facilitating a peace agreement between Thailand and Cambodia—an achievement described as a significant diplomatic milestone for the region.
The statement was released by Dr Asyraf Wajdi Dusuki, Chief Secretariat of the Unity Government Leadership Consultative Council. - August 20, 2025
