KUALA LUMPUR, Nov 2 — Finance Minister Lim Guan Eng said the country's fiscal deficit target of RM52 billion this year will be achieved in tandem with investors and international credit ratings agencies' assessments, alongside public performance.

RM52 billion is 3.4 per cent of Malaysia's GDP. Lim said the government plans its budget on a yearly basis, and that a proper analysis of month-by-month fiscal deficit must account for the yearly plan.

“The latest full-year plan estimates the government will raise RM135 billion worth of gross direct debt, and redeem RM83 billion,” Lim said in a statement.

As a result, the minister said the net direct debt to be raised for the whole of 2019 is estimated to be RM52 billion.

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“This has been outlined in the 2019 Budget as approved by the Parliament last year. For the January-October 2019 period, the government raised RM121 billion worth of gross direct debt.

“This is comprised of RM51.5 billion Malaysian Government Securities, RM50.5 billion Malaysian Government Investment Issues, RM11.5 billion Treasury bills and RM7.5 billion worth of other instruments including the Samurai bond,” he said, adding that RM61.7 billion worth of direct debt has also been redeemed during the same period.

Specifically for last month, Lim explained the government issued RM10 billion worth of direct debt, while simultaneously redeeming RM11.8 billion worth of direct debt.

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“Therefore, the net direct debt issued in October 2019 was -RM1.8 billion. For the final 2 months of the year, the government is expected to issue RM14.2 billion worth of gross direct debt, while will redeem RM21.6 billion worth of direct debt. Therefore, the net direct debt issuance for the period will be -RM7.4 billion.

“The government’s financing activities are proceeding as planned, as demonstrated by the actual issuance and redemption of its direct debt. There is no intention to change the direct debt issuance and redemption plan for the rest of the year,” he said.

As a result, Lim said the government is confident meeting its RM52 billion fiscal deficit target for 2019, which is lower than 2018's fiscal deficit of RM53.4 billion, or 3.7 per cent of the GDP.

“This confidence is shared by all the top three credit rating agencies, which have affirmed Malaysia’s sovereign credit rating high at A minus or A3 with a stable outlook since the new Pakatan Harapan took over last year.

“We remain committed towards greater transparency and will continue to disclose the entire fiscal position fully,” he said.