KUALA LUMPUR (Oct 25): Malaysia's medium-term goal of a balanced budget by 2020 is at risk due to fall in revenues, according to Moody's Investors Service. In a statement yesterday, Moody's said Malaysia might face its narrowest half-year deficit since early 2011 after recording a RM32.8 billion deficit in the first half of 2016 (1H16). "As a result, it may be challenging for the government to meet its 3.1% of gross domestic product (GDP) fiscal deficit target for this year. Moody's said Malaysia's medium-term goal of a balanced budget by 2020 is at risk due to decline in revenues, weakening of debt affordability and absence of major fiscal reforms despite credit-positive developments. "The absence of bolder steps toward fiscal deficit reduction places at risk the government's goal of a balanced budget by 2020.

Source: The Edge Markets October 25, 2016 04:18 UTC