Keynote Speech: Sustainability of Fiscal Policy in Malaysia
Keywords:Fiscal policy, sustainability, Malaysia, COVID-19
This keynote speech was delivered at the International Conference on Interdisciplinary and Strategic Studies (ICRIS) on August 12, 2021. It shed light on the sustainability of fiscal policy especially during the COVID-19 pandemic and call for re-structuring fiscal reform to achieve more sustainable fiscal policy. The proposed reform covers enhancing the efficiency of revenue generation, increasing the efficiency and productivity of government spending, improving the enforcement against the black market as well as utilising Islamic financial instruments namely zakat and waqf to finance fiscal policy.
Abdul Mannan. (1997). Teori dan Praktek Ekonomi Islam. Yogyakarta: Dana Bakti Prima Yasa.
Bank Negara Malaysia (2017). Rethinking Investment Incentives. Staff Insights 2017/12. https://www.bnm.gov.my/documents/20124/826874/Rethinking+Investment+Incentives_Harvard.pdf
Bernama. (2021, April 6). IMF maintains Malaysia’s GDP growth at 6.5 pct this year. Bernama. https://www.bernama.com/en/business/news.php?id=1949510
World Bank. (2020, December 17). Malaysian economy showing signs of recovery, projected to grow by 6.7 percent in 2021 following a contraction of 5.8 percent in 2020 [Press Release]. https://www.worldbank.org/en/news/press-release/2020/12/17/malaysian-economy-showing-signs-of-recovery-projected-to-grow-by-67-percent-in-2021-following-a-contraction-of-58-percent-in-2020’’
Bernanke, B. (2011, June 14). Fiscal Sustainability at Annual Conference of the Committee for a Responsible Federal Budget. Federal Reserve. https://www.federalreserve.gov/newsevents/speech/bernanke20110614a.htm
Fitch Ratings. (2021). Malaysia Rating Report. https://www.fitchratings.com/research/sovereigns/malaysia-13-08-2021
Lau, E., & Syn-Yee, A. L. (2018). Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines. Jurnal Ekonomi Malaysia, 52(1), 67-76.
Medina, & Schneider, F. (2018). Shadow Economies Around the World: What Did We Learn Over the Last 20 Years? IMF Working Paper, 18(17), 1. https://doi.org/10.5089/9781484338636.001
Ministry of Finance. (2018a). 2019 Budget Speech. https://www.mof.gov.my/portal/arkib/budget/2019/bs19.pdf
Ministry of Finance. (2018b). Fiscal Outlook and Federal Government Revenue Estimates 2019. https://www.mof.gov.my/portal/arkib/revenue/2019/section1.pdf
Ministry of Finance. (2020). Fiscal Outlook and Federal Government Revenue Estimates 2021. https://belanjawan2021.treasury.gov.my/index.php/en/tf-2021
Ministry of Finance. (2021, March 22). Government consistent in explaining statutory debt [Press Release]. https://www.mof.gov.my/portal/en/news/press-citations/government-consistent-in-explaining-statutory-debt-mof