If the positive appraisal of the nation’s economic reforms by the International Monetary Fund (IMF) is to be taken into account, it certainly means that the Malaysian government is moving in the right direction of progress.

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) stated the IMF’s nod of approval was due to the Anwar Administration rationalizing subsidies and expenditure as the revenue base is narrow coming from tax revenue.

Other factors, according to ACCCIM, was the government’s efforts in reforming civil sector salaries, pension schemes and combating corruption which are beginning to send out a positive signal to foreign investors.

A spokesman from Malaysia’s University of Science and Technology stated that the government is headed in the right direction and has started to make good progress, which should lay the foundation for further improvement in the coming years.

Other pointers he stated included robust domestic demand and moderately-rising government spending in line with keeping inflation in check and Bank Negara Malaysia’s management of the macro-economic environment.

On December 15, the IMF commended the nation’s economic reforms, especially the introduction of the Public Finance and Fiscal Responsibility Act (FRA) 2023 and the implementation of electricity and diesel subsidy reforms.

-THE MALAYSIA VOICE