Malaysia Bets on Higher Growth, Ringgit to Meet Budget Gap Aim

Malaysia’s faster economic growth and strengthening ringgit are reducing pressure on the government to cut petrol subsidies to meet its deficit target for this year, according to Economy Minister Rafizi Ramli.

The government now has more space to maneuver as it looks to narrow the budget gap to 4.3% of gross domestic product, from 5% last year, Rafizi told reporters in Kuala Lumpur on Monday. He stopped short of ruling out Malaysia would allow prices for RON95 — its cheapest gasoline — to float this year, an unpopular move that could pose political risks to the government.