PUTRAJAYA, June 15 — Malaysia could have entered recession if not for the economic reforms undertaken as part of the National Transformation Programme (NTP), said Prime Minister Datuk Seri Najib Razak.

Najib also believed not enough credit was given to such efforts, adding that the local economy might be "a lot worse” had his administration not embraced such reforms.

"If we didn’t have the courage to execute the transformation, in my opinion, Malaysia would have been in a recession, probably. We would have faced much more difficulties,” he said during his speech at the 2018 Budget Consultation Session held at the Finance Ministry.

The NTP, launched in 2009, was the government’s main efforts to propel Malaysia towards a high-income nation status.

Najib said responsible spending by the Barisan Nasional government made it possible for the deficit to be reduced to the targeted 3.0 per cent of the GDP this year, down from 6.7 per cent when he took office in 2009.

He added that his administration chose to rein in the chronic overspending gradually to avoid  repercussions to the public.

"We have not been frivolous. We have resisted the temptation to spend more especially when the elections are approaching,” he said when stressing his government's commitment to fiscal consolidation.

The PM pointed out that the local economy expanded the most two years with the 5.6 per cent growth in the first quarter of 2017 on the back of strong domestic consumption.

Exports also rose by 24.1 per cent to RM82.63 billion in March, while foreign direct investments increased to RM17 billion in the first quarter of 2017.

Najib then said the economy was on track to expand between 4.3 and 4.8 per cent for the whole year.

"We have chosen a road less travelled but... it has enabled us to achieve a much resilient economy to welcome any foreseeable external shock to the economy,” he said.