Malaysia: 2020 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Malaysia

IMF Staff Country Reports, February 28, 2020

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The Malaysian economy is stable despite domestic and external challenges.
The authorities are making progress on their reform agenda, including governance reforms and measures to improve the transparency and management of public finances.
Growth has held up and inflation has remained subdued.
Domestic demand is expected to be the main driver of growth over the medium term.
Risks to the outlook are, on balance, to the downside.

Policies should focus on medium-term fiscal consolidation, while safeguarding growth and financial stability.
Medium-term fiscal consolidation plans should be underpinned by well-identified revenue and spending measures.
Push ahead with structural fiscal reforms, including:
- the adoption of a Fiscal Responsibility Act,
- improvement in debt management,
- improvement in public procurement,
- strengthening the public investment framework.
Structural reforms are needed to enshrine in law main governance measures, and to boost productivity to achieve high income status and inclusive growth.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, External debt, Fiscal policy, Labor, Public debt, Revenue administration
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Asia and Pacific, CR, Global, headline inflation, inflation expectation, ISCR, monetary policy statement, rate, staff appraisal, statement mentions downside risk