Malaysia: public finances

What is Malaysia's budget deficit?

Malaysia's federal government fiscal deficit for 2026 is estimated at 3.6% of GDP, against an original target of 3.5%, and is projected at 3.3% of GDP in 2027, according to the Ministry of Finance's Fiscal Outlook 2027, published with the budget in October 2026.

The figures cover the federal government only, not state governments or public corporations. The ministry gives the revision as the cost of measures to cushion the effects of the West Asia conflict. The outlook says the deficit is projected to keep falling in line with the medium-term target of 3% of GDP under the Public Finance and Fiscal Responsibility Act 2023 (Act 850).

Official sources: Ministry of Finance: Fiscal Outlook 2027, section 1 (PDF) · Ministry of Finance: Economic and Fiscal Outlook 2027

What is Malaysia's public debt?

Malaysia's federal government debt was RM1,378.9 billion at the end of June 2026, equal to 63.1% of GDP, according to the Ministry of Finance's Fiscal Outlook 2027 debt chapter. The public finance law sets a medium-term debt threshold of 60% of GDP.

Wider public sector debt, which includes debt of government-owned entities, was RM1,814.4 billion or 83% of GDP. The IMF uses a broader general government measure, which it put at 70.5% of GDP for 2025, so the figures should not be mixed.

Official sources: Ministry of Finance: Fiscal Outlook 2027, debt management (PDF) · IMF DataMapper: Gross debt, Malaysia

How big is Malaysia's Budget 2027?

Malaysia's federal budget for 2027 totals RM459.84 billion, according to the Ministry of Finance's budget chart. Income tax provides 40.1% of the money, indirect tax 21.1%, non-tax revenue 18.2% and borrowing and use of government assets 17.2%.

On the spending side, emoluments take 24.3%, subsidies and social assistance 15.8% and debt service charges 13.3%. The budget speech said the Ministry of Education receives the largest allocation, nearly RM69 billion, and the Ministry of Health RM47.7 billion. The budget must be approved by Parliament before it takes effect.

Official sources: Ministry of Finance: Federal Government Budget 2027 chart (PDF) · Ministry of Finance: Budget 2027 speech

How much does Malaysia's government borrow each year?

Malaysia's federal government gross borrowing is projected at RM207.1 billion in 2026, or 9.5% of GDP, compared with RM181.7 billion in 2025, according to the Fiscal Outlook 2027 debt chapter. Refinancing of maturing debt accounts for RM128.5 billion.

Gross borrowing covers both the deficit and the repayment of debt that falls due, so it is larger than the deficit. Most of it is raised in ringgit through Malaysian Government Securities and Government Investment Issues; the chapter notes the statutory limit that these, with treasury bills, must not exceed 65% of GDP.

Official sources: Ministry of Finance: Fiscal Outlook 2027, debt management (PDF)

What is Malaysia's national debt?

The latest figure from the IMF, for 2025, is 70.5% of GDP. It is the top of the series, which starts in 2005. East Asia & Pacific median: 45.0% of GDP; Malaysia is 6th highest of 29. World rank, highest first: 54th of 185.

What is Malaysia's budget deficit?

According to the IMF, general government net lending or borrowing in Malaysia was -3.5% of GDP in 2025, which is a deficit. Its high point since 2005 was 2019, at -2.0% of GDP; its low point was 2021, at -6.0% of GDP. It is 21st highest of 29 in East Asia & Pacific, where the median is -1.7% of GDP. Of 188 countries with 2025 data, 116th highest.

How much does Malaysia's government take in?

19.9% of GDP: that is general government revenue in Malaysia for 2025, according to the IMF. Since 2005 it has ranged from 18.4% of GDP (2021) to 25.4% of GDP (2012). Across East Asia & Pacific the middle value was 33.6% of GDP, and Malaysia placed 24th highest of 29. Of 187 countries with 2025 data, 131st highest.

How much does Malaysia's government spend?

According to the IMF, general government spending in Malaysia was 23.4% of GDP in 2025. The peak was 30.9% of GDP in 2009 and the low 22.0% of GDP in 2017. Across East Asia & Pacific the middle value was 32.9% of GDP, and Malaysia placed 22nd highest of 29. World rank, highest first: 125th of 186.

What is tax revenue in Malaysia?

In 2024, central government tax revenue in Malaysia was 12.4% of GDP, according to the IMF. Since 2005 it has ranged from 10.9% of GDP (2020) to 15.6% of GDP (2012). It is 11th highest of 12 in East Asia & Pacific, where the median is 15.4% of GDP. Worldwide: 73rd of 92.

How much does Malaysia spend on its military?

SIPRI puts military spending in Malaysia at 1.0% of GDP in 2025. Since 2005 it has ranged from 0.9% of GDP (2019) to 2.2% of GDP (2005). East Asia & Pacific median: 1.4% of GDP; Malaysia is 14th highest of 16. World rank, highest first: 108th of 149.