“For this year, the government has already stated that we will have a fiscal deficit of 5.5% to 6% and that is to be expected because fiscal measures are necessary,” BNM deputy governor Jessica Chew said during a virtual briefing for business editors in conjunction with the release of the Financial Stability Review for First Half 2020 today.

Chew said the measures are critical in the current environment to support the country’s recovery, and the government remains committed to the consolidation over the medium term and it has a strong track record of delivering results over the medium to long term.

She said while the central bank is concerned about the increase in Covid-19 cases, it is confident about the measures introduced by the government, coupled with the open economy advocated by the country, which has been instrumental in employment creation and income growth.

“By and large, the economy is operating unlike before. And the external sector is also recovering. So, we might see in some countries the resurgence in the number of cases but if you look at the macro numbers, they are generally improving globally.”

Malaysia has recently raised its debt-to-gross domestic product (GDP) ceiling to 60% from 53% and the revision was made following the anticipation of a higher fiscal deficit this year amid a fiscal injection into the economy, which stands at 20% of its GDP.

Putrajaya has rolled out stimulus packages worth RM305 billion since the start of the pandemic to help the people and businesses tide over its impact.