KUALA LUMPUR, Oct 9 — Malaysia’s consolidated public sector (CPS) financial position remains sound and well-managed, driven by ongoing public finance reforms and disciplined fiscal management across all levels of government.

The Ministry of Finance (MoF), in its Fiscal Outlook and Federal Government Revenue Estimates 2027 report released today, said that this performance is driven by the institutionalisation of the Public Finance and Fiscal Responsibility Act 2023 (Act 850), as well as the proposed legislation on government-owned entities.

“The federal government continues to enhance fiscal transparency while strengthening its governance and oversight role across public sector entities.

“Each layer of government is responsible for contributing to national development through strategic investment in critical infrastructures and social programmes to ensure the well-being of the rakyat,” it said.

In this regard, MoF said balancing mandate delivery with prudent public financial management would provide a strong foundation for the nation to prosper and benefit future generations.

The CPS comprises both the general government and non-financial public corporations (NFPCs).

The ministry said the CPS overall balance deficit is projected at RM162.09 billion, equivalent to 7.0 per cent of gross domestic product (GDP), in 2027.

CPS revenue is projected to increase by 7.3 per cent to RM402.67 billion in 2027, while operating expenditure is expected to rise 3.6 per cent to RM434.32 billion.

The current balance of NFPCs is projected to record a surplus of RM60.93 billion, while the public sector current balance is forecast to register a surplus of RM29.28 billion.

For the general government, MoF projected the consolidated overall deficit at RM75.29 billion, or 3.2 per cent of GDP, in 2027.

For state governments, the ministry estimated the consolidated overall surplus at RM2.39 billion, or 0.1 per cent of GDP, in 2026.

Meanwhile, MoF estimated the overall deficit of NFPCs at RM57.15 billion, or 2.6 per cent of GDP, in 2026. — Bernama