2022 Fiscal Outlook and Federal Government Revenue Estimates

2022 Fiscal Outlook
and Federal
Government
Revenue Estimates
FOREWORD
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The year 2021 has been difficult and challenging for Malaysia. Along with the rest of
the world, we are still battling the impact of COVID-19 on our people and businesses,
particularly economic losses and decline in the rakyat’s well-being due to containment
measures. We have also seen how the pandemic has impacted the Government’s
financial position, with our fiscal deficit rising to 6.2% of GDP in 2020, deviating from our
consolidation trajectory. Consequently, not only are we forced to defer the country’s goal
of becoming a high-income, inclusive, and developed economy by 2020, we are also faced
with the risk of long-term economic scarring, undermining decades of what we have
developed in terms of competitiveness, productivity, national wealth, and socioeconomic
inclusivity, among others.
Following the proclamation of a public health and economic emergency (“Emergency

Ordinance”) by KDYMM Seri Paduka Baginda Yang di-Pertuan Agong in January 2021,
the Government took swift actions and rolled out several bold steps to contain the
socioeconomic fallout from the pandemic. These include decisive policy interventions,
such as redirecting and reprioritising budget resources towards additional assistance
and stimulus packages. Packages that were launched to enable timely, effective, and
efficient management of a fast-evolving virus began with PERMAI in January, followed
by PEMERKASA in March, PEMERKASA Plus in May and later PEMULIH in June, all with a
combined value of RM225 billion.
Immediately after the launch of PEMULIH, the Government also unveiled the National
Recovery Plan (NRP), which is a comprehensive strategy to exit the pandemic in a safe
and systematic manner, based on a phased approach and backed by data and science.
This has since placed the country firmly on its recovery path, enabling us to effectively
build on green shoots of recovery achieved in the second quarter of this year. Once
we secured vaccine supplies, the acceleration of our National COVID-19 Immunisation
Programme (PICK) – which helped us register one of the world’s fastest vaccination rates
– played a key role in bringing down the number of positive cases and most importantly,
the serious ones.
Alhamdulillah, we are now close to completing the full vaccination of the entire adult
population and have expanded PICK to include young adults to facilitate a safe
resumption of our education segment. Overall, our ongoing policy support aimed at
building resiliency and adaptability to the new normal will provide a foundation for us
to rebound quickly and emerge from this crisis with better capabilities for growth. To
this end, the Government has been mindful of managing its finances responsibly and
ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 101

prudently, guided by the principles of transparency and accountability. I would like to
reassure the rakyat and business community that the country’s fiscal position remains
intact, backed by a well-regulated financial system.
Even as we go through recovery in 2022, we must think beyond the span of 12 months,
to firmly place the nation on a much stronger footing in the medium and long term.
Hence, the Government is committed to push for more refined, targeted policies to drive
economic recovery, rebuild resilience and catalyse reforms. To achieve that, the 2022
Budget is formulated to address both near-term economic revitalisation efforts, as well
as medium-term rebuilding and reform strategies which will bring to life the aspirations
espoused in the Twelfth Malaysia Plan (12MP). As much as the Government’s short-term
policies are important to drive our socioeconomic recovery in 2022, it is equally critical
that we strengthen the foundations of longer-term institutional and fiscal reforms for
rebuilding our resilience post-pandemic, so that we are ready to face any similar major
setback in the future.
Fiscal accountability goes beyond responsible spending of revenue and ensuring

sufficient development budget for socioeconomic growth. It is also about transparency
and inclusivity of the budgeting process, as well as empowering institutions to address
leakage and corruption. On the former, for the first time in Malaysia’s annual budgeting
history, a Pre-Budget Statement in August as well as four Public Consultation Papers
were issued in September 2021. The four papers were on improving Government
procurement; improving cash assistance programmes; reviewing of tax incentives; and
drafting the Fiscal Responsibility Act. On the latter, the Government has launched the
National Anti-Corruption Plan, which aims to improve the accountability of law and
enforcement agencies; enhance the efficiency and responsiveness in public service
delivery; and promote integrity in business.
In the past 19 months or so, the Government has repeatedly proven that despite our
tight fiscal space, we delivered as best as we could to, among others, save jobs, support
employers, implement mass vaccination and help the vulnerable put food on the table.
However, when it comes to strengthening our fiscal position, ultimately it depends on a
sustained economic recovery, which must be driven based on a whole-of-nation approach.
This can be achieved via a more holistic collaboration between the Government and
the private sector, non-governmental organisations, community leaders and the rakyat
themselves. Together, we must capitalise on Malaysia’s strong fundamentals in the form
of skilled human capital; sound institutional and policy framework; abundant natural
resources as well as our extraordinary will and indomitable “Keluarga Malaysia” spirit to
rebuild our economic and fiscal resilience, so we can grow and face any future challenge
head-on.
Moving forward, we must look beyond ethnic and religious lines, or even political
ideology, to cut out the white noise and ‘hear’ the voices that represent the true
Malaysian soul: this is the foundation of our strength and collective narrative to help this
nation heal. This is also the least we can do to honour all our frontliners, who reflect the
true essence of the Malaysian caring spirit by risking their lives daily for the lives of their
fellow Malaysians. Insya-Allah, if we work and advance together every step of the way,
we will recover from the challenges of this pandemic and in due time, we will claim true
victory.
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29 October 2021
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The COVID-19 pandemic continues to impact countries around the world, where the
emergence of highly-transmissible variants caused protracted health and economic crises.
But, global economic recovery is beginning to pick up, driven by accelerated vaccination
in developed economies and record high fiscal support. However, the recovery has been
uneven, as obstacles to mass vaccination continue to weigh heavily on many emerging
markets and developing economies. While advanced economies are recovering, many of
the world’s poorest countries are lagging behind, and much work remains to be done to
reverse the pandemic’s staggering human and economic costs.
Closer to home, since the onset of the COVID-19 pandemic, the Government has
implemented eight stimulus and assistance packages totalling RM530 billion, where
RM225 billion has been announced this year. Having benefitted more than 20 million
people and 2.4 million businesses, these packages, which are complemented by the 2021
Budget measures, aided growth throughout the first half of 2021, with GDP increasing by
7.1% compared to a contraction of 8.4% during the same period last year.
Despite ongoing challenges on SOP compliance, targeted containment measures and

teething issues on reopening of borders and physical mobility, the outlook for the second
half of 2021 remains positive, sustained by the gradual reopening of economic and
social sectors. As more states transition into Phases 3 and 4 under the National Recovery
Plan, and the National COVID-19 Immunisation Programme (PICK) being expanded to
cover teenagers and younger children, we are paving the way for a safe and systematic
resumption of our education sector, as well as more economic and social activities. These
developments, supported by the ongoing aid and support measures, will further support
our recovery prospects to register growth at between 3% and 4% this year.
Going into 2022, we will remain agile and flexible in providing the necessary fiscal
support to people and businesses in getting back on their feet to ensure a sustainable
recovery. Fiscal policy will remain expansionary, and properly curated to nurture shoots
of recovery and sustain growth in the face of ongoing uncertainties and COVID-19
resurgence risks. Due to additional stimulus packages announced to support the
economy, the fiscal deficit in 2021 has been officially revised to 6.5% to GDP. As a result,
the Government has also raised the statutory debt level to 65% to GDP in October 2021
to facilitate the implementation of existing stimulus and the 2022 Budget measures,
which will help us achieve the objectives in the Twelfth Malaysia Plan, 2021-2025 (12MP).

In terms of funding resources, utilising the investment returns from the National Trust
Fund (KWAN) to expedite PICK was both timely and appropriate. Moving forward, the
Government is committed to replenish KWAN and resume its fiscal consolidation path in
line with economic recovery, with realistic but firm debt reduction targets to ensure fiscal
sustainability in the medium to long term.
Reiterating the commitment made in the first Pre-Budget Statement issued in August,
the Medium-Term Fiscal Framework will guide the pace of fiscal consolidation, while
improving revenue capacity, spending efficiency and debt affordability. Concurrently,
fiscal reforms to improve discipline and governance will be pursued, with the Fiscal
Responsibility Act (FRA) expected to be introduced in 2022. Moreover, through the
adoption of the Medium-Term Revenue Strategy, strategies to broaden the tax base,
strengthen the tax system, and review tax incentives will be implemented, while public
expenditure will be reviewed on a regular basis to optimise spending.
Moving forward, as much as the Government’s short-term policies are important to drive
our socioeconomic recovery in 2022, it is equally critical that we strengthen our economic
foundation with longer-term institutional and fiscal reforms for rebuilding our resilience,
so that we are better prepared to face any similar eventuality in future. As such, the
2022 Budget will continue to prioritise our people and economic sectors affected by the
pandemic, particularly by creating job opportunities and ensuring targeted assistance
is available for vulnerable groups. The 2022 Budget will also build the foundations for
reforms detailed in the 12MP.
Concurrently, in achieving our digital ambitions in line with the Fourth Industrial
Revolution (4IR), the Government will prioritise strengthening the nation’s digital capacity
and capabilities, while also equipping our workforce with the right skill sets. This
will entail enhancing our digital backbone to support internet connectivity as well as
capitalising on 5G technology. Further, reforms outlined in initiatives such as the National
Investment Aspirations (NIA) and the PERKUKUH Pelaburan Rakyat, will also feed into our
plans aligned to the Sustainable Development Goals (SDGs) and the 12MP for medium-
and long-term sustainable economic growth, improved socioeconomic inclusion and
enhanced environmental sustainability.
On economic outlook, our GDP is expected to grow between 5.5% and 6.5% in 2022,
driven by the reopening of more economic and social sectors, as well as increased
external demand from major trading partners. Other factors that will support Malaysia’s
economic growth include higher commodity prices, as well as the implementation of
infrastructure projects with a high multiplier effect. These will further strengthen our
economic fundamentals, which have remained resilient even during these difficult times,
underpinned by the economy’s increasing sophistication, depth and diversity.
The Government will ensure that the country recovers from the pandemic crisis without
incurring long-term economic damage but it is equally critical for all Malaysians to
embrace the Keluarga Malaysia spirit in working together to overcome any future
challenges. Through the proverbial rain and dark clouds, with our collective efforts, we
can now see the sun shining down on our beloved nation for better days ahead to help
us emerge stronger and more united as a nation, Insya-Allah.
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29 October 2021

TH E 2 0 2 2 F E D ER AL GOVER N ME N T B UDGE T
WH ER E IT CO MES FROM
Borrowings and Use

of Government’s
Assets
29.5%
Income Tax
35.7%
ࣣ࣍332,100 1
MILLION
Non-tax Other Direct Tax

Revenue 2.6%
18.9%
Indirect Tax
13.3%
W HE RE IT GOE S
General
Administration COV I D - 1 9 F u n d 3
1.2% 6.9%
DE VE LO P M E N T Security
E X P E N DI T U R E 2.7%
Social
6.8% Emoluments
26.0%
Economic
12.1%
ࣣ࣍ 332,100 2
MILLION
Debt Service
Others Charges
6.1% 13.0%
Subsidies and
Social Assistance O P ER ATI N G
5.2% EX P EN D I TU R E
Grants and Transfers
to State Governments
Retirement Supplies and Services
2.4%
Charges 9.1%
8.5%
1
Consists of revenue and borrowings
2
Excludes contigency reserves
3
COVID-19 Fund under the Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020
Source: Ministry of Finance, Malaysia

࢛࣮ࣔ࣎ࢥ࣮࣎
Page
FOREWORD 101
PREFACE 103
THE 2022 FEDERAL GOVERNMENT BUDGET 105
ACRONYMS AND ABBREVIATIONS 109
SECTION 1 FISCAL POLICY OVERVIEW
Overview 113
Expansionary Fiscal Policy Underpins Economic Recovery 113
Information Box – National Trust Fund 114
Fiscal Position in 2021 121
Outlook for 2022 122
Medium-Term Fiscal Framework, 2022-2024 122
Feature Article – Fiscal Responsibility Act Framework 124
Conclusion 130
SECTION 2 FEDERAL GOVERNMENT REVENUE

Overview 135
Revenue in 2021 135
Feature Article – Medium-Term Revenue Strategy: A Call for Revenue 137
Reforms in Malaysia
Conclusion 143
SECTION 3 FEDERAL GOVERNMENT EXPENDITURE

Overview 147
Performance 2021 147
COVID-19 Fund 150
Information Box – COVID-19 Fund Updates 152
Federal Recoverable Loans 157
Conclusion 158
SECTION 4 DEBT MANAGEMENT

Overview 163
Financing 163
Feature Article – Government of Malaysia’s 2021 Global Sukuk 166
Federal Government Debt 172
Feature Article – Malaysia's Debt Sustainability Analysis 2021 174
External Debt 181
Public Sector Debt 182
Conclusion 183
SECTION 5 FISCAL RISK AND LIABILITY

Overview 189
Debt and Liabilities Exposure 189
Government Guarantees 190
1Malaysia Development Berhad 192
Other Liabilities 193
Conclusion 193
SECTION 6 CONSOLIDATED PUBLIC SECTOR

Consolidated Public Sector 197
Information Box – Government Finance Statistics 198
General Government 203
State Governments 204
Non-Financial Public Corporations 204

Page
TABLE
Table 1.1. Federal Government Financial Position 121
Table 1.2. Medium-Term Fiscal Framework (MTFF) 123
Table 2.1. Federal Government Revenue 136
Table 3.1. Federal Government Operating Expenditure by Component 148
Table 3.2. Federal Government Development Expenditure by Sector 150
Table 3.3. COVID-19 Fund Allocation 151
Table 4.1. Federal Government Financing 164
Table 4.2. Debt Legislative Guidelines 172
Table 4.3. Federal Government Debt by Instrument 173
Table 4.4. Federal Government Debt by Holder 174
Table 4.5. External Debt 181
Table 4.6. Public Sector Debt 182
Table 5.1. Federal Government Debt and Liabilities Exposure 189
Table 5.2. Major Recipients of Loan Guarantees 190
Table 5.3. Committed Guarantees 191
Table 5.4. 1MDB’s Debt 192
Table 6.1. Consolidated Public Sector Financial Position 197
Table 6.2. Consolidated General Government Financial Position 203
Table 6.3. Consolidated State Governments’ Financial Position 204
Table 6.4. Consolidated NFPCs Financial Position 205
FIGURE
Figure 1.1. Federal Government Overall and Primary Balance 131
Figure 1.2. Federal Government Revenue, Operating Expenditure and Current Balance 131
Figure 1.3. Federal Government MTFF Overall Balance 131
Figure 1.4. Revised Fiscal Position in 2021 131
Figure 2.1. Petroleum-Related and Non-Petroleum Revenue 144
Figure 2.2. Revenue as Percentage to GDP 144
Figure 3.1. Total Expenditure by Sector 159
Figure 3.2. Total Expenditure by Ministry and Agency 159
Figure 3.3. Operating Expenditure by Component 159
Figure 3.4. Operating Expenditure by Sector 159
Figure 3.5. Development Expenditure by Sector 159
Figure 3.6. Federal Recoverable Loans under Development Fund 159
Figure 4.1. Issuance by Maturity 184
Figure 4.2. BTC Ratios of MGS and MGII 184
Figure 4.3. MGS Benchmark Yield Curve 184
Figure 4.4. MGS Indicative Yields 184
Figure 4.5. Federal Government Debt Composition 184
Figure 4.6. Federal Government Debt by Holder 185
Figure 4.7. Non-Resident Holdings of Ringgit-Denominated Debt Securities 185
Figure 4.8. Federal Government Debt by Remaining Maturity 185
Figure 4.9. Debt Service Charges 185
Figure 4.10. Debt Maturity Profile 185
Figure 5.1. Outstanding Loan Guarantees 194
Figure 5.2. Maturity Profile of Loan Guarantees 194
Figure 5.3. Loan Guarantees by Segment 194
Figure 5.4. Outstanding PPP Obligations by Sector 194
Figure 6.1. NFPCs Assets and Liabilities 205
PUBLIC FINANCE STATISTICS 207
TREASURY MEMORANDUM ON THE FEDERAL GOVERNMENT REVENUE ESTIMATES FOR 2022 231

ࢍ࢛ࣣࣔ࣎अ࣍ࣧ ࢍ࣎ࢡ ࢍ࢚࢚ࣣࢥࣾࢸࢍ࣮ࢸࣔ࣎ࣧ
ACRONYMS AND ABBREVIATIONS
11MP Eleventh Malaysia Plan e-Tanah electronic land management

system
12MP Twelfth Malaysia Plan
FELDA Federal Land Development
1MDB 1Malaysia Development Authority
Berhad
FPC Fiscal Policy Committee
AG Accountant General’s
Department of Malaysia FRA Fiscal Responsibility Act
BCG budgetary central government GDP Gross Domestic Product
BEPS Base Erosion and Profit GFSM 2014 Government Finance Statistics
Shifting Manual 2014
BNM Bank Negara Malaysia GGs Government guarantees
BPN Bantuan Prihatin Nasional GKP SME Prihatin Grant
BPR Bantuan Prihatin Rakyat GLC government-linked companies
bps basis points GoM Government of Malaysia
BSH Cost of Living Aid GSSS Green, Social, Sustainability

and Sustainability-linked
BTC bid-to-cover
IMF International Monetary Fund
CCM Companies Commission of
Malaysia IPSAS International Public Sector
Accounting Standards
CENDANA Dana Pemasaran dan Promosi
Pendigitalan di bawah Agensi IRB Inland Revenue Board
Pembangunan Ekonomi
Kebudayaan KHAZANAH Khazanah Nasional Berhad
CIA Collection Intelligence KWAP Retirement Fund

Arrangement (Incorporated)
CITA companies income tax KWC-19 COVID-19 Fund
COVID-19 Coronavirus Disease 2019 LPPSA Public Sector Home Financing

Board
CPO crude palm oil
LRT light rail transit
CPS consolidated public sector
MAA Malaysia Automotive
DanaInfra DanaInfra Nasional Berhad Association
DE development expenditure MACC Malaysia Anti-Corruption

Commission
DSA Debt Sustainability Analysis
MCO Movement Control Order
DSC debt service charges
MGII Malaysian Government
EPF Employees Provident Fund Investment Issues
ESG environmental, social and MGS Malaysian Government

governance Securities

ࢍ࢛ࣣࣔ࣎अ࣍ࣧ ࢍ࣎ࢡ ࢍ࢚࢚ࣣࢥࣾࢸࢍ࣮ࢸࣔ࣎ࣧ
MIDA Malaysia Investment PETRONAS Petroliam Nasional Berhad

Development Authority
PFI private financing initiative
MITB Malaysian Islamic Treasury
Bills PICK National COVID-19
Immunisation Programme
MOF Ministry of Finance
PITA petroleum income tax
MOF Inc. Minister of Finance
Incorporated PPP public private partnership
MPC Monetary Policy Committee PPR People’s Housing Project
MRT mass rapid transit PRIHATIN PRIHATIN Rakyat Economic

Stimulus Package
MSMEs micro-,small- and medium-
sized enterprises PRIHATIN Additional PRIHATIN SME
PKS+ Economic Stimulus Package
MTB Malaysian Treasury Bills
PENJANA National Economic Recovery
MTFF Medium-Term Fiscal Plan
Framework
REITs real estate investment trusts
MTRS Medium-Term Revenue
Strategy RMCD Royal Malaysia Customs
Department
MWSB Malaysia Wakala Sukuk Berhad
RPGT real property gains tax
NCI National Committee
Investment SDG Sustainable Development Goal
NFPCs non-financial public SME small and medium enterprise

corporations
SPK Government Housing Sukuk
NRP National Recovery Plan
SPV special purpose vehicle
NTF National Trust Fund
SRI Sustainability and Responsible
OE operating expenditure Investing
OECD Organisation for Economic Co- SRR Statutory Reserve Requirement

operation and Development
SST Sales Tax and Service Tax
OPR overnight policy rate
SVDP Special Voluntary Disclosure
PBLT PBLT Sdn. Bhd. Program
PDRM Royal Malaysian Police SWF sovereign wealth fund
PEMULIH National People’s Well-Being TIV total industry volume

and Economic Recovery
Package TRC Tax Reform Committee
PERMAI Perlindungan Ekonomi dan TVET technical and vocational

Rakyat Malaysia education and training
PEMERKASA Strategic Programme to WGBI World Government Bond Index

Empower the People and
WSP Wage Subsidy Programme
Economy
VAT value-added tax
PEMERKASA+ Strategic Programme to
Empower the People and
Economy Plus

ࣧࢥ࢛࣮ ࢸࣔ࣎
Fiscal
Policy
Overview
113 ࣔࣾ ࢥ ࣣࣾ ࢸ ࢥ ࣿ
113 ࢥ ऄ࣠ࢍ ࣎ ࣧ ࢸࣔ࣎ ࢍ ࣣअࢯ ࢸ ࣧ ࢛ ࢍ ࣇ

࣠ࣔࣇ ࢸ࢛ अࣳ࣎ࢡࢥ ࣣ ࣠ ࢸ ࣎ ࣧࢥ࢛ࣔ࣎ࣔ࣍ ࢸ࢛
ࣣ ࢥ࢛ࣔࣾ ࢥ ࣣअ
Information Box - National Trust Fund
12 1 ࢯࢸ ࢛ࣧ ࢍ ࣇ࣠ࣔࣧ ࢸ ࣮ ࢸࣔ࣎ࢸ ࣎
12 2 ࣮ࣔࣳࣇࣔࣔࣅࢯࣣࣔ
12 2 ࣍ࢥ ࢡࢸࣳ࣍ ࣮ࢥ ࣣ ࣍ࢯࢸ ࢛ࣧ ࢍ ࣇ

ࢯࣣ ࢍ ࣍ࢥ ࣣࣿࣔ ࣅ
Feature Article - Fiscal Responsibility Act
Framework
࢛࢛ࣔ࣎ࣇࣳࣧ ࢸࣔ࣎
ࣧࢥ࢛࣮ࢸࣔ࣎ ࢯࢸ࢛ࣧࢍࣇ ࣠ࣔࣇࢸ࢛अ ࣔࣾࢥࣣࣾࢸࢥࣿ
ࣧࢥ࢛࣮ࢸࣔ࣎
Fiscal Policy Overview
Overview Recognising that vaccination is the key factor

in addressing the pandemic, the Government
Against the backdrop of the prolonged launched the National COVID-19 Immunisation
COVID-19 pandemic, fiscal policy assumes a Programme (PICK) on 24 February 2021. The
primary role in economic recovery. The third rollout of PICK signifies the Government
wave of the COVID-19 outbreak poses a major commitment to ensure at least 80% of the
challenge to the Government’s fiscal burden, adult population receives full vaccination by
particularly in balancing its impact on the the end of October 2021. Subsequently, in
future generation. With an exponential rise in June 2021, the Government unveiled the
positive cases, a national state of emergency National Recovery Plan (NRP), a roadmap
was declared effective from 11 January until to exit from the pandemic and accelerate
1 August 2021 to enhance enforcement, economic recovery. The NRP, tabled in
improve containment measures and tighten Parliament in July 2021, provides clear
border control. In view of the extraordinary guidance for reopening the economy and
situation, the Government has proactively social activities through a four-transitional
extended its policy flexibility and pragmatism phase strategy based on data analytics. As
to protect the people and businesses as well a policy continuation, the NRP consolidates
as supporting the economy. all containment and economic assistance
measures into a comprehensive and whole-
The Government continues to provide of-nation approach in uniting the country to
substantial fiscal support in 2021 in the combat the pandemic.
form of additional assistance and stimulus
packages to cushion the adverse impact of
the pandemic and containment measures. Expansionary Fiscal
A series of four packages totalling RM225
billion has been introduced this year, namely
Policy Underpins
the Perlindungan Ekonomi dan Rakyat Malaysia Economic Recovery
(PERMAI), Strategic Programme to Empower
the People and Economy (PEMERKASA), The Federal Government’s fiscal stance
Strategic Programme to Empower the People continue to prioritise steering the nation
and Economy Plus (PEMERKASA+) and National out of the pandemic crisis. The provision
People’s Well-Being and Economic Recovery of significant fiscal support is expected
Package (PEMULIH). Additional fiscal injection to contain the outbreak, sustain domestic
under these packages, estimated at RM25 economic activity, generate investments,
billion, aims to boost healthcare spending, stimulate consumer spending and create job
ensure business continuity and ease the opportunities. The rollout of more targeted
burden of the rakyat. Overall, the Government recovery measures has positively impacted the
has announced eight assistance and stimulus economy, as reflected by the strong economic
packages totalling RM530 billion since the growth of 7.1% in the first half of this year.
pandemic last year with fiscal support of RM80 The Government is confident that with the
billion provided under the COVID-19 Fund. smooth political transition as well as policy

continuation and clarity, the economy will 2021 compared to 30,000 in the early stages
recover and record positive growth in 2021. of implementation due to a higher supply of
vaccines. As at end-August, the Government
As the global economic recovery continues has secured more than 87 million vaccine
to be uneven and volatile, fiscal operations doses worth around RM4.3 billion to ensure
remain proactive and agile to respond to a smooth PICK implementation. Malaysia
dynamic economic environments and policy achieved its target of inoculating 80% of the
priorities. Efforts to enhance spending adult population in September 2021.
effectiveness and efficiency will be supported
by prudent expenditure measures as well In addition, the socioeconomic and
as optimising the operating environment in development agenda remains the top priority
adjusting to the new normal. Furthermore, for the Government in the medium term, as
strategies to improve revenue buoyancy will be stipulated in the Twelfth Malaysia Plan,
implemented more orderly without disrupting 2021 – 2025 (12MP). Consequently, fiscal
the recovery momentum. resources will also be directed to implement
programmes and projects under the 12MP,
To drive health and economic recovery, the which will serve as a catalyst in charting
Government has mobilised various fiscal the path for a prosperous, inclusive and
tools to balance the spending needs and sustainable nation. In this extraordinary
fiscal sustainability. This includes partial situation, the Government has tabled a
utilisation of the National Trust Fund (NTF) to motion in Parliament to increase its statutory
ensure sufficient funding and accelerate the debt limit, taking into account the financing
implementation of vaccination programmes needs of the recovery measures and the
under PICK. As a result, Malaysia’s vaccination implementation of 12MP. In ensuring
rate is among the fastest globally, thus medium-term fiscal sustainability, the fiscal
allowing the Government to reopen more consolidation trajectory is envisaged to be
economic sectors to boost the economy. The more gradual than initially projected. This is to
number of daily vaccinations has recorded a provide sufficient fiscal support for the nation’s
sharp increase to around 500,000 doses in July economic recovery and development agenda.
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A sovereign wealth fund (SWF) is a fund established by a government to manage and grow
the country’s wealth. The source of the wealth may be in various forms, such as revenue from
natural resources, fiscal or budgetary surpluses and even direct transfers from the government to
achieve specific economic and development purposes. SWF usually serves as a contingent asset to
preserve the wealth from the country’s non-renewable resources and may be utilised to cushion
any unexpected shocks such as an economic downturn or impact from a natural disaster. There are
various types of SWF established around the world based on their source of funds and purpose,
which is summarised as follows:

ࢯࢸࢰࣣࣳࢥ1. Type of SWF
STABILISATION FUND SAVINGS FUND STRATEGIC AND PENSION

DEVELOPMENT FUND RESERVE FUND
To function as a buffer To serve as savings for To serve a broad To function as
mechanism to cushion future generations, macroeconomic reserve for pension
a country’s budget especially when a country purpose, such as liabilities that need to
from the volatility of is dependent on driving the domestic be fulfilled by the
commodity prices or non-renewable resources capital market or government. The
economic shocks. The such as petroleum. investing in strategic source of fund is mainly
source is usually from the Therefore, the resources can sectors. The source of the from annual
proceeds of natural be shared across fund does not necessarily government transfers
resources and budget generations by converting come from the excess of where it will be invested
surpluses. the non-renewable wealth government budget or to build up the fund
into investment portfolios. other reserves but also from sufficiently to cover the
Example: State Oil Fund of Savings fund usually has a debt and equity instruments. pension liabilities.
Republic Azerbaijan, SOFAZ; Chile defined timeframe before any
Economic & Social Stabilization utilisation is allowed. Example: Temasek Holdings, Example: Government Pension
Fund Singapore; Public Investment Fund, Investment Fund, Japan; Danish
Example: Government Pension Fund Saudi Arabia Labour Market Supplementary
Global, Norway and Abu Dhabi Pension Fund (ATP), Denmark
Investment Authority
Source: IMF Global Financial Stability Report 2007 and Global SWF Annual Report 2020
Each SWF has its own investment strategy and risk appetite to achieve its objective and ensure
its sustainability. For example, a stabilisation fund usually invests in more liquid and less risky
instruments, such as bonds and sukuk. However, SWFs with a long-term obligation such as savings,
strategic and pension funds, focus on a long-term investment strategy to achieve stable and
consistent returns while balancing its risks and return profile.
Malaysia has several SWFs with different purposes, such as the Khazanah Nasional Berhad
(Khazanah), Retirement Fund (Incorporated) (KWAP) and also the National Trust Fund (NTF).
Khazanah was established as a Minister of Finance Incorporated (MOF Inc.) company that serves as
the Government’s strategic investment arm, while KWAP was formed in 2007 to assist in funding
the Government’s pension liability. Both entities are governed by their own board of directors with
a dedicated management team.
7KH 1DWLRQDO 7UXVW )XQG
The NTF was established in 1988 through the National Trust Fund Act 1988 [Act 339]. The objective
of the NTF is to ensure the optimisation of the country’s non-renewable natural resources as a
more sustainable source of revenue for future generations.
Governance
Section 4 of Act 339 provides for the establishment of a panel of trustees as an oversight
committee to monitor and govern the operations of the NTF. Members of the Panel consist of a
Chairman, a Deputy Chairman (an officer from the Ministry of Finance), a representative from the
Prime Minister’s Department and two members with business and financial experience. Trustees are
responsible for investment decisions, accounting and reporting of the Fund to the Finance Minister,
while Bank Negara Malaysia (BNM) is mandated for the daily operation of the NTF.

The Act also requires the NTF account to be annually audited by the National Audit Department
no later than three months after its financial year ends. The NTF’s audited financial statement,
together with an annual report, which includes its investment profile, are submitted to the Finance
Minister, which will then be laid in Parliament.
Performance
According to Section 5 of Act 339, parties that should contribute to the Fund include Petroliam
Nasional Berhad (PETRONAS), state governments that receive royalties from the exploitation of
petroleum or other non-renewable natural resources and any parties that are involved in the
research and development of natural resources. The NTF started with a fund of RM114 million in
1988, which subsequently grew to RM19.5 billion as at end December 2020. The growth of the fund
was on account of the increased contribution from PETRONAS as well as returns on investment
through strategies and a diversified portfolio. Investment portfolio of the NTF include, among
others, in equity, bonds, real estate investment trusts (REITs), gold and deposits. As of
31 December 2020, accumulated surpluses of the NTF stood at RM8.2 billion while contribution to
the fund totalled RM10.4 billion.
ࢯࢸࢰࣣࣳࢥ 2. Growth and Return on Asset of the NTF

RM billion %
25 25
20 19.5 20
15
15
10
10 6.0
5
5
0
0 -5
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ASSET SIZE
RETURN ON ASSET (RIGHT SCALE)
Source: NTF Annual Report

ࢯࢸࢰࣣࣳࢥ 3. Financial Position of the NTF,

as at 31 December 2020
Assets Liability and Accumulated Fund

0.1% 0.1%
2.2%
4.4%
9.1%
42.2% 53.3%
RM19.5 billion RM19.5 billion
88.6%
CASH & CASH EQUIVALENT PAYABLES

FINANCIAL ASSETS CONTRIBUTIONS
RECEIVABLES ACCUMULATED SURPLUSES
INVESTMENT IN ASSOCIATES FINANCIAL ASSET RESERVES
Source: NTF Audited Financial Statement 2020
ࢯࢸࢰࣣࣳࢥSummary of the NTF’s Investment Portfolios
EQUITY
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SURJUDPPHV
Source: NTF Annual Report

Utilisation
Section 6 of the Act 339 authorises the utilisation of the NTF after ten years from the
commencement of the Act, with prior approval of the Finance Minister. Section 6(a) provides for the
utilisation for development expenditure as specified in the First Schedule of the Development Funds
Act 1966 [Act 406], while Section 6(b) allows for loans or advances to the Federal Government or
state governments. Since its inception, the NTF was utilised in 1998 to finance the development of
Paya Indah Wetlands, amounting to RM42 million. However, no loan or advance was ever provided
to either the Federal Government or state governments. Nevertheless, the NTF holds Malaysian
Government Securities (MGS) as part of their investment portfolio, as provided under Section 7 of
Act 339.
In early 2020, Malaysia was hit by the COVID-19 pandemic, which necessitated the implementation
of various movement control orders (MCO) to curb the spread of the virus. To cushion the
economic impact of the MCO and to assist the rakyat, several stimulus packages and recovery
plans were introduced by the Government. As vaccines became available in 2021, the COVID-19
National Immunisation Programme (PICK) was initiated with an initial cost estimated at RM3 billion
as announced in the 2021 Budget. Given the Government’s limited fiscal space, a total of RM5
billion is earmarked to be utilised from the NTF to widen the coverage and expedite the nationwide
vaccination programme. The expenditure under this programme is allocated for the procurement of
vaccines and costs related to administrating the vaccine, such as equipment, logistics, venues and
others.
The utilisation of the NTF for PICK was made in consideration of the following factors:
a) Malaysia was hit by the second and third waves of the COVID-19 pandemic that came with
highly contagious variants of the virus. This has led to an exponential increase in infection
cases that strained the national health system. Hence, it demands the Government to expedite
PICK to achieve the target of inoculating 80% of the adult population by October 2021, ahead
of the initial target by first quarter of 2022;
b) The extended MCO necessitated the roll-out of various stimulus and assistance packages
to protect the livelihood of the rakyat (such as Bantuan Prihatin Nasional and Food Basket
programmes) and survivability of businesses (such as Prihatin SME Grant and Wage Subsidy
Programme). This situation requires the Government to optimise its financing to provide
certainty in managing cash flows, given the slower revenue performance that limits its fiscal
space;
c) The fiscal space was also limited by increasing financial obligations arising from liabilities
that have to be served by the Federal Government. Thus, the Government has to look for an
alternative financing option that is readily available and will not incur additional debt burden in
the short and medium term; and
d) The Government will only utilise the accumulated profits and not the accumulated contribution.
The Government’s intention is not to burden future generations with debt if procurement of
vaccines is to be financed through additional borrowings.

Though Act 339 provides for the utilisation of development expenditure, among others, for the
health sector (First Schedule, Act 406), such as the construction of hospitals and clinics as well
as procurement of medical equipment and assets, the procurement of vaccines is not part of
the expenditure list. Therefore, the Government had to amend Section 6 of Act 339 for vaccine
procurement, which was executed through an Emergency Ordinance in April 2021 with a temporary
clause added to the Act as follows:
“Section 6(c)
the procurement of vaccines and any expenditure incurred in relation to the vaccines for an epidemic of
any infectious disease as specified under the Prevention and Control of Infectious Diseases Act 1988
[Act 342].”
This amendment was subsequently tabled in Parliament in October 2021 to maintain this clause in
Act 339.
7KH 3URJUHVV RI 3,&.
With financial support from NTF, Malaysia is progressing well in its vaccination drive, where the
nation is currently ranked among the highest in the world in terms of daily COVID-19 vaccination
rate. As at 30 September 2021, a total of 20 million individuals or 85.7% of the adult population,
have been fully vaccinated. This has enabled the gradual opening of economic sectors and
subsequently accelerating the economic recovery of the nation.
ࢯࢸࢰࣣࣳࢥ 5. Malaysia: Vaccination Rate,

End-September 2021
Total dose (’000) Operation Surge Capacity

26 July – 1 August
600 Gazettement of the
Amendment to Act 339 through
500 the Emergengy Ordinance
21 April
400
300
200
100
0
Feb Mar Apr May Jun Jul Aug Sep
SECOND DOSE
FIRST DOSE
Source: The COVID-19 Immunisation Task Force (CITF)
([SHULHQFH RI 2WKHU *OREDO 6RYHUHLJQ :HDOWK )XQGV
Like Malaysia, other countries have also utilised their savings and stabilisation funds, particularly
funds sourced from natural resources, to finance their assistance and stimulus measures in tackling
the COVID-19 pandemic (Figure 6). This is in line with one of the purposes of establishment of
the SWFs which is to provide immediate fiscal support during a crisis. For example, the Norway
Government Pension Fund Global has contributed USD35.7 billion in 2020 and allocated USD30.7
billion in 2021 to finance Norway’s national budget, including measures related to the COVID-19
crisis. Singapore also has earmarked USD31.8 billion from its reserve to finance its COVID-19
Resilience Package in 2020 and USD8.2 billion in 2021.

ࢯࢸࢰࣣࣳࢥ 6. Global Sovereign Wealth Fund Utilisation 2020

USD billion
NORWAY 35.7
SINGAPORE 31.8
MEXICO 5.4
PERU 5.4
COLOMBIA 3.2
AZERBAIJAN 2.7
CHILE 2.0
IRELAND 1.8
TRINIDAD & TOBAGO 1.5
ANGOLA 1.5
MALAYSIA 1.2
IRAN 1.1
KAZAKHSTAN 1.1
NIGERIA 0.4
BOTSWANA 0.3
TIMOR LESTE 0.3
GHANA 0.2
Source: Natural Resource Governance Institute, Ministry of Finance Norway and Ministry of Finance Singapore
&RQFOXVLRQ
SWFs are vital for sovereigns to safeguard the interest of future generations. However, with the
worst ever crisis brought by the COVID-19 pandemic, SWFs became a useful financial option for
sovereigns in financing their recovery strategies. Malaysia is no exception in this case. In view of its
limited fiscal space, the Government partly utilised its NTF to combat the pandemic. The utilisation
of the NTF for the national vaccination drive is a critical component of Malaysia’s national recovery
plan to exit from the crisis, accelerate economic recovery and safeguard its future. Once the
economy stabilises and returns to its growth trajectory, the Government is committed to
replenishing the Fund.
5HIHUHQFHV
Bauer, A. (2020). How Have Governments of Resource-Rich Countries Used Their Sovereign Wealth
Funds During the Crisis?. Natural Resource Governance Institute. Retrieved from https://
resourcegovernance.org
Global SWF. (2021). 2021 Annual Report. Retrieved from https://globalswf.com/reports
International Monetary Fund (IMF). (2007). Global Financial Stability Report 2007: Financial Market
Turbulence: Causes, Consequences, and Policies. Retrieved from https://www.imf.org
Ministry of Finance Norway. (2021). Revised National Budget 2021. Retrieved from https://www.
regjeringen.no
Ministry of Finance Singapore. (2021). Annex F-2: Fiscal Position in FY2021. Retrieved from https://
www.mof.gov.sg
Ministry of Health Malaysia. (2021). COVID-19 Malaysia: Empat Hari Berturut-Turut, Pemberian
Vaksin Lepasi 400,000 dos Sehari. Retrieved from https://covid-19.moh.gov.my
National Trust Fund (NTF). (2020). Audited Financial Statement as at 31 December 2020

Fiscal Position in 2021 Given the growing fiscal needs, the

Government has recalibrated its spending
priority towards supporting the healthcare
In the 2021 Budget, the Government initially system, easing the burden of the rakyat and
projected fiscal deficit to reduce to 5.4% to ensuring business continuity. Consequently,
GDP, based on the assumption of steady expenditure has been reprioritised to
economic recovery in the second half of 2020 accommodate the additional assistance and
and the expected spillover into 2021. However, economic stimulus packages, resulting in
the emergence of new COVID-19 variants, higher spending requirements under the
which is more virulent and contagious, COVID-19 Fund. Thus, total expenditure is
poses big challenges to the Government in expected to remain significant at RM320.6
protecting the rakyat, businesses and economy. billion, marginally lower by 0.6% than budget
Consequently, the Government re-imposed estimates of RM322.5 billion.
the movement control orders (MCO) and
announced additional assistance and stimulus The operating expenditure (OE) will be
packages to ease the burden of the rakyat and rationalised by 7.1% or RM16.9 billion at
businesses. RM219.6 billion, mainly from supplies and
services as well as grants to statutory bodies
These initiatives further affected the Federal with high reserves. Similarly, development
Government financial position. Revenue is expenditure (DE) is expected to fall by 10.1%
estimated to be lower at RM221 billion or to RM62 billion from budget estimates of
14.6% to GDP in 2021, a shortfall of 6.7% RM69 billion. Several development projects
from the budget estimates. The shortfall is were reviewed and rescheduled following the
mainly due to lower tax revenue. However, LPSOHPHQWDWLRQ RI WKH 0&2 ZKLFK DࢆHFWHG WKH
the shortfall will be cushioned by additional progress of the projects. However, the COVID-19
revenue from higher average crude oil and Fund allocation is estimated to increase by
palm oil prices as well as additional dividends 129.4% or RM22 billion to RM39 billion to
and a special payment from Government’s ࢉQDQFH WKH DGGLWLRQDO DVVLVWDQFH DQG VWLPXOXV
entities. packages.
࣮ࢍ࢚ࣇࢥ Federal Government Financial Position,

2020 – 2022
࢛ࢵࢍ࣎ࢰࢥ ࣧࢵࢍࣣࢥ ࣮ࣔ ࢰࢡ࣠

ࣣ࣍ ࣍ࢸࣇࣇࢸࣔ࣎ મય મય
3 4 3 4 3 4

Revenue 225,076 221,023 234,011 -14.9 -1.8 5.9 15.9 14.6 14.3
Operating expenditure 224,600 219,600 233,500 -14.7 -2.2 6.3 15.9 14.5 14.3
&XUUHQW EDODQFH 0.0 0.1 0.0
Gross development expenditure 51,360 62,000 75,600 -5.2 20.7 21.9 3.6 4.1 4.6
Less: Loan recovery 1,259 800 600 -21.5 -36.5 -25.0 0.1 0.1 0.0
Net development expenditure 50,101 61,200 75,000 -4.7 22.2 22.5 3.5 4.0 4.6
COVID-19 Fund 1
38,019 39,000 23,000 2.6 -41.0 2.7 2.6 1.4
2YHUDOO EDODQFH -6.2 -6.5 -6.0
3ULPDU\ EDODQFH -3.8 -3.9 -3.3
1
A specific trust fund established under Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020 to finance
economic stimulus packages and recovery plan
2
Excluding debt service charges
3
Revised estimate
4
Budget estimate, excluding 2022 Budget measures

The longer-than-expected pandemic has forced Electrified Double Track Rail Gemas - Johor
the Government to increase its spending Bahru, Rapid Transit System Link and Pan
capacity in providing additional fiscal support. Borneo Highway.
Thus, the Federal Government’s fiscal deficit
is projected to widen to 6.5% to GDP due With a higher ceiling for the COVID-19 Fund,
to additional fiscal injection coupled with the Government will allocate RM23 billion for
lower GDP projections. Similarly, excluding the stimulus and economic recovery measures.
debt service charges, the primary balance is The allocation will support programmes and
expected to increase to 3.9% to GDP. projects such as wage subsidy and cash
assistance programmes as well as small-
scale projects. As stipulated under the
Outlook for 2022 Temporary Measures for Government Financing
(Coronavirus Disease 2019 (COVID-19)) Act 2020
As the global economy remains uncertain, [Act 830], the Fund will continue to remain in
there is a need to revitalise domestic economic operation until end-2022.
and social activities to expedite the recovery.
The vaccination programme is one of the key After considering revenue growth and
enablers in reopening the social and economic expenditure requirement, the fiscal deficit is
sectors. In 2022, the economic outlook is expected to moderate to 6% to GDP. Similarly,
expected to improve further and return to excluding the debt service charges, the
its potential growth trajectory, supported primary deficit is estimated at 3.3% to GDP.
by broader vaccination coverage and stable The Government is committed to providing
domestic and external demand. As published adequate fiscal support to revitalise the
in the inaugural Pre-Budget Statement, domestic economy back to its growth potential.
the 2022 Budget is formulated with three Hence, the resumption of fiscal consolidation
main objectives: protecting and driving the will be on a more gradual trajectory, guided by
recovery of lives and livelihoods, rebuilding the medium-term fiscal framework.
national resilience and catalysing reforms. The
Government will continue its expansionary
budget policy in supporting the national
development agenda, as outlined in the 12MP.
Medium-Term Fiscal
Framework, 2022 – 2024
The Federal Government’s revenue collection in
2022 is estimated to be higher at RM234 billion In the medium term, fiscal strategy will be
or 14.3% to GDP, driven by the anticipated guided by the Medium-Term Fiscal Framework
increase in tax revenue collection to RM171.4 (MTFF). MTFF serves as guidance for budgetary
billion and non-tax revenue to RM62.6 billion. planning by setting a three-year macro-fiscal
Similarly, total expenditure is budgeted to be projection, including revenue and expenditure.
slightly higher at RM332.1 billion or 20.3% Hence, the MTFF is an important tool for
to GDP, attributed to higher OE at RM233.5 public finance management and operations to
billion and DE at RM75.6 billion. The remaining promote fiscal discipline, ensure effective and
RM23 billion is for the disbursement under efficient spending and embark on institutional
the COVID-19 Fund. The increase in OE is reforms.
mainly due to supplies and services, debt
service charges as well as emoluments. DE In the 2021 – 2023 MTFF, published in the
allocation will be mainly directed towards the 2021 Budget, the Government projected the
implementation of programmes and projects fiscal consolidation to average 4.5% to GDP
under 12MP, among others include the over the three years. The projection was

based on the assumptions of steady economic In the medium term, the fiscal consolidation
recovery with real GDP growth between trajectory is expected to be more gradual than
4.5% - 5.5%, stable crude oil prices (USD45 - initially projected, with the overall fiscal deficit
USD55 per barrel) and crude oil production averaging at 5% to GDP for the 2022 – 2024
of 580,000 barrels per day. Total revenue MTFF period. The Government will continue
was estimated at 14.7% to GDP, while total implementing reform initiatives to ensure fiscal
expenditure was projected at 19.3% to GDP. sustainability and improve debt affordability
while at the same time continuously
However, due to the prolonged COVID-19 supporting economic recovery.
pandemic, the Government has provided
more fiscal injection and increase its statutory
࣮ࢍ࢚ࣇࢥ Medium-Term Fiscal Framework (MTFF),
debt ceiling to ensure adequate spending for
2022 – 2024
economic stimulus and recovery measures as
well as implementation of 12MP. Consequently, ȁ
the 2022 – 2024 MTFF has been revised with
a more gradual fiscal consolidation on the ࣣ࣍ ࢚ࢸࣇࣇࢸࣔ࣎ ࣧࢵࢍࣣࢥ ࣮ࣔ ࢰࢡ࣠
મય
assumption of nominal GDP growth averaging
7.7%, average crude oil prices at USD67 per Revenue 736.0 13.9
barrel as well as average crude oil production Non-petroleum 600.7 11.3
of 580,000 barrels per day. Petroleum-related 135.3 2.6
Operating expenditure 726.9 13.7
Total revenue in the medium term is projected &XUUHQW EDODQFH 0.2
at RM736 billion or 13.9% to GDP, contributed Gross development
250.0 4.7
mainly from non-petroleum revenue estimated expenditure
at RM600.7 billion or 11.3% to GDP. Petroleum- Less: Loan recovery 1.8 0.0
related revenue is forecast at RM135.3 billion Net development
248.2 4.7
or 2.6% to GDP. Efforts to enhance the expenditure
revenue base will be guided by the Medium- COVID-19 Fund1 23.0 0.5
Term Revenue Strategy (MTRS) that outlines 2YHUDOO EDODQFH -5.0
the mobilisation stages of revenue measures, 3ULPDU\ EDODQFH -2.3
review of tax legislation and modernisation of Underlying assumptions:
revenue administration.
Average real GDP
growth (%) 5.5
The total indicative expenditure ceiling for the
Average nominal GDP
2022 – 2024 period, including the COVID-19 7.7
growth (%)
Fund, is estimated at RM999.9 billion or 18.9%
Average crude oil price
to GDP. OE allocation is projected at RM726.9 67
(USD per barrel)
billion or 13.7% to GDP, while DE at RM250 Average oil production
580,000
billion or 4.7% to GDP. The ceiling will provide (barrels per day)
broad guidance to ministries and agencies for
1
A specific trust fund established under Temporary Measures for
budget planning, hence facilitating a smooth Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020
implementation and financing of programmes to finance economic stimulus packages and recovery plan
Note: MTFF estimate, excluding budget measures
and projects. Source: Ministry of Finance, Malaysia

ࢯࢥࢍ࣮ࣣࣳࢥ ࢍࣣ࣮ࢸ࢛ࣇࢥ
)LVFDO 5HVSRQVLELOLW\ $FW )UDPHZRUN
,QWURGXFWLRQ
The Malaysian economy has evolved from agriculture-based towards a highly diversified economy
through a series of national development plans anchored by effective fiscal and monetary policies
and management. The COVID-19 pandemic crisis has elevated, in particular, the role of fiscal policy,
which is imperative in supporting economic and health recovery as well as remaining agile in any
economic circumstances. At the same time, the Government has to balance the nation’s immediate
needs with the effort to ensure public finances remain sustainable in the medium- and long-term.
This includes initiatives to enhance its institutional and governance structure, transparent reporting
and effective risk management through responsible and progressive fiscal reforms.
The Government remains committed to continuing its fiscal reform initiatives to strengthen public
finances while supporting economic recovery, although the pandemic has hampered its fiscal
consolidation plan. Currently, the Government is formulating the Fiscal Responsibility Act (FRA) to
further enhance governance, accountability and transparency in fiscal management. In this regard,
the Fiscal Policy Committee (FPC) endorsed the FRA framework in May 2021. Subsequently, a
consultation paper on the proposed framework has been made available to the public for feedback.
&XUUHQW /HJDO )UDPHZRUN
The current fiscal policy framework is governed by various laws and regulations. The Federal
Constitution 1957 is the supreme law of the Federation. It extends to the governance of public
monies, particularly budgetary procedures, and the roles and functions of Parliament in approving
and monitoring the annual supply bill. The Constitution also specifies the relationship between the
Federal Government and state governments, particularly the Federal, State and Concurrent Lists.
Under the Constitution, state governments, except Sabah and Sarawak, can only borrow from or
with the approval of the Federal Government. Meanwhile, state governments are not allowed to
issue guarantees without the Federal Government’s approval, hence limiting most of the debt and
liabilities exposure at the Federal Government level.
The primary legislation, which provides guidance for controlling and managing public finances,
is outlined under the Financial Procedure Act 1957 [Act 61]. The procedure and guidelines are
further expanded in Treasury Instructions and Circulars, which are regularly updated. Several other
acts provide legal basis for tax administration, collection and governance, such as Income Tax Act
1967 [Act 53], Sales Tax Act 2018 [Act 806], Service Tax Act 2018 [Act 807] and Customs Act 1967
[Act 235]. Meanwhile, the Development Funds Act 1966 [Act 406], which governs development
expenditure, only allows expenditures specified in the First Schedule of the Act. In response to
the COVID-19 pandemic crisis, the Government has established a temporary trust fund, namely
the COVID-19 Fund, to comprehensively finance all pandemic- and stimulus-related measures. In
relation to financial governance for the extra-budgetary entity, particularly Federal Statutory Bodies,
apart from their respective establishment acts, there are three legislations that need to be adhered
to, namely the Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240], the Statutory
Bodies (Power to Borrow) Act 1999 [Act 598] and the Statutory Bodies (Discipline and Surcharge)
Act 2000 [Act 605].

ࢯࢸࢰࣣࣳࢥFiscal Regulatory Framework
)('(5$/&2167,787,21
)LQDQFLDO3URFHGXUH$FW
REVENUE EXPENDITURE DEBT OTHERS

of which: of which: of which: of which:
ȎIncome Tax Act ȎDevelopment Ȏ7UHDVXU\%LOOV ȎMinister of
1967 Funds Act 1966 (Local) Act 1946 Finance
ȎPetroleum ,QFRUSRUDWLRQb
ȎTemporaryb ȎLoan (Local) Act
(Income Tax) Act Act 1957
Measures for 1959
1967 *RYHUQPHQWb Ȏ Loans Guarantee
ȎCustoms Act )LQDQFLQJb ȎExternal Loans %RGLHV
1967 &RURQDYLUXVb Act 1963 Corporate) Act
Disease 2019 ȎHousing Loan 1965
ȎExcise Act 1976
&29,'b$FWb Fund Act 1971
ȎSales Tax Act 2020
2018 ȎGovernment
Funding Act 1983
Ȏ Service Tax
Act 2018
7UHDVXU\,QVWUXFWLRQV &LUFXODUV
ȎProcurement ȎAsset Management ȎPublic Monies
Ȏ%XGJHW0DQDJHPHQW ȎLoan Management
There are several legislations that govern the Government’s debt and liabilities, such as the Loan
(Local) Act 1959 [Act 637], Government Funding Act 1983 [Act 275], Treasury Bills (Local) Act 1946
[Act 188], External Loans Act 1963 [Act 403], Minister of Finance (Incorporation) Act 1957 [Act 375]
and Loans Guarantee (Bodies Corporate) Act 1965 [Act 96]. In addition, the Government has applied
several fiscal rules to enhance the budgetary discipline, such as a debt rule and golden rule. The
debt rule refers to the statutory debt ceiling of 65% to GDP, while the golden rule dictates that
borrowings are only allowed to finance development expenditure. The debt acts and rules are as in
7DEOH .
࣮ࢍ࢚ࣇࢥ Debt Acts and Rules
5XOHV $FWV
Domestic debt1 ceiling not exceeding 65% to GDP Temporary Measures for Government Financing
(Coronavirus Disease 2019 (COVID-19)) Act 2020
MTB ceiling not exceeding RM10 billion Treasury Bills (Local) Act 1946
2ࢆVKRUHERUURZLQJFHLOLQJQRWH[FHHGLQJ50ELOOLRQ External Loans Act 1963

Note: 1 Refers only to Malaysian Government Securities (MGS), Malaysian Government Investment Issues (MGII) and Malaysian Islamic Treasury Bills (MITB)

The Fiscal Policy Committee (FPC) was established in 2013 as part of the fiscal reform initiative
to strengthen public finances and ensure long-term fiscal sustainability. The FPC is chaired by
the Prime Minister and members comprised of selected Cabinet Ministers, the Chief Secretary to
the Government and several key central agencies. It meets at least twice a year and the Federal
Treasury acts as its secretariat.
3URSRVHG )5$ )UDPHZRUN
The FRA is intended to be a dedicated law to govern the fiscal policy conduct of the Government.
This Act will be formulated based on the Malaysian context to provide a solid framework for
prudent fiscal management. Similar to recent fiscal responsibility legislations in most countries,
the FRA comprises a set of principles for sound fiscal management with a strong emphasis on
transparency and accountability.
In addition, the proposed FRA framework requires the Government to publish its key measurable
fiscal objectives that are consistent with the FRA principles. This includes fiscal objectives relating
to sustainable budget balance, prudent debt and fiscal risk management. Countries, such as
New Zealand and Australia, include principles and fiscal objectives in their fiscal responsibility
legislations. In contrast, the United Kingdom’s legislation requires the government to publish its
key fiscal objectives in a separate document known as the Charter for Budget Responsibility. Some
fiscal responsibility laws also include escape clauses that temporarily exempt governments from
complying with the fiscal rules, particularly during unexpected events or crises.
There are four key components in fiscal management, namely revenue, expenditure, debt and
fiscal risk. These components must be managed effectively and prudently, with a high degree and
frequency of transparency and accountability for sound fiscal management. This includes managing
fiscal risks associated with contingent liabilities as it may derail the fiscal consolidation objectives
of the Government. Therefore, the FRA will include provisions relating to these four components to
ensure long-term fiscal sustainability regarding sustainable revenue policy, effective spending, and
prudent debt and fiscal risk management.
Another essential feature of fiscal legislation is the reporting requirement. The proposed FRA
will include obligatory reporting requirements comprising ex-ante and ex-post documents such
as economic dan fiscal forecasts, pre-budget statements, mid-year economic and fiscal updates,
fiscal risk statement, tax expenditure, mid-year budget performance and annual financial
report. Disclosure of these documents would enhance the transparency of fiscal objectives and
performance. Furthermore, FRA would further strengthen the role of FPC by institutionalising the
FPC as the high-level advisory committee on fiscal matters.

ࢯࢸࢰࣣࣳࢥProposed Fiscal Responsibility Act Framework
INTRODUCTION 0$1'$7()25 .(< REPORTING ),6&$/32/,&< 27+(56

),6&$/32/,&< COMPONENTS COMMITTEE
Ȏ Title and Ȏ Key principles Ȏ Revenue Ȏ Pre-budget Ȏ Members Ȏ Sanctions
commencement document
Ȏ Charter/Schedule Ȏ Expenditure Ȏ Roles Ȏ Transitional
Ȏ Objective Ȏ Post-budget period
Ȏ Escape clauses Ȏ Debt document Ȏ Power
Ȏ Interpretation / Ȏ Role of the
Ȏ Fiscal risk Ȏ Other reports
Definition Ministry of
Finance,
Ȏ Coverage Malaysia
6WDNHKROGHU (QJDJHPHQW
Public Consultation
As part of its fiscal reform agenda, the Ministry of Finance (MOF) has since published a public
consultation paper to obtain inputs and feedback on the formulation of the FRA. The consultation
paper includes the rationale, issues related to fiscal management and the proposed framework for
FRA. The consultation paper was made available to the public on the MOF Budget 2022 portal from
3 to 15 September 2021.
MOF has received positive feedback from the public on the proposed FRA framework as outlined
in the consultation paper. In general, the public are very supportive of the Government’s efforts
to enhance its governance, transparency and accountability in fiscal management through the
introduction of the FRA. All recommendations will be taken into consideration before finalising the
FRA. Among the recommendations received are as follows:
a) Implement accrual accounting in accordance with international accounting standards;

b) Ensure predictable and stable tax rates;
c) Improve the management of government assets;
d) Review the FPC membership by including private sector experts;
e) Establish an independent fiscal institution;
f) Review the role of Minister of Finance (Incorporated) companies;
g) Enhance the management of government guarantees;
h) Review the pension scheme from defined benefit to defined contribution;
i) Increase public investment spending; and
j) Widen the revenue base by introducing new sources of revenue and reducing tax
exemptions.

In addition, the MOF will continue to engage with the International Monetary Fund (IMF) for expert
advice and technical assistance in formulating the FRA. At the same time, MOF will continue to
consult relevant stakeholders for views and feedback in drafting the FRA. The draft bill of the FRA
will then be tabled to the Cabinet for approval before tabling in Parliament.
Response from Local and International Communities
Since the announcement of the FRA, the Government has received positive feedback from various
parties. Constructive feedback will be taken into consideration in improving the content and
process of the FRA. Among the feedback received from local organisations are shown in 7DEOH .
࣮ࢍ࢚ࣇࢥ Feedback from Local Organisations
“In the long run, Malaysia’s fiscal position is anticipated to achieve structural improvements
through ongoing efforts to enhance its revenue, via achieving the goals set out by the Tax
Reform Committee, and by enacting legislation under the Government Procurement Act 2020
and Fiscal Responsibility Act 2021. While details are currently limited, RAM expects better
fiscal oversight and budgetary caps to elevate Malaysia’s fiscal sustainability.”
RAM Rating Services Sdn. Bhd., Press Releases, November 2019
“Finally, it is hoped that the government takes fiscal transparency seriously, especially in its
intention to table the Fiscal Responsibility Act in 2021.”
IDEAS, Media Statement, November 2020
“Furthermore, with the introduction of the Fiscal Responsibility Act, we believe the
management of fiscal policy will likely be reinforced further, whereby the government will
continue to introduce measures on fiscal consolidation.”
Affin Hwang Investment Bank Bhd, Economic Update Malaysia – Economic Outlook 2H2020, June 2020
International organisations, such as the IMF, Organisation for Economic Co-operation and
Development (OECD) and rating agencies, also shared their views. They have complimented efforts
by the Malaysian Government to further enhance its fiscal governance through the formulation of
the FRA. This reform initiative will have a positive impact on credit rating assessment, especially on
the governance. Among the feedback from international organisations are shown in 7DEOH .

࣮ࢍ࢚ࣇࢥ Feedback from International Organisations
“To better prepare for changes in the debt limit and better anchor public finances, the
authorities should accelerate the preparation of the Fiscal Responsibility Act (FRA).”
IMF, Staff Report for the 2021 Article IV Consultation for Malaysia, February 2021
“In addition, the Government has announced in 2018 the introduction of a Fiscal
Responsibility Act towards 2021. Like in some other countries, such as Ireland, New Zealand
and Thailand, where a similar fiscal responsibility legislation was adopted, under the planned
Fiscal Responsibility Act, government revenue, expenditure, budget balance and debt will be
managed consistently with one another through pre-determined rules and reporting in order
to enhance its transparency and accountability.“
OECD, OECD Economic Surveys: Malaysia 2021, August 2021
“The government also continues to work on a Fiscal Responsibility Act to improve fiscal
transparency and accountability and enhance overall fiscal management.”
Fitch Ratings, Malaysia Rating Report, August 2021
“The reform agenda on strengthening institutions, governance, and the capacity of the
administration remains an important complement to these efforts and should be maintained.”
World Bank, Malaysia Economic Monitor, June 2020
&RQFOXVLRQ
The Government is committed to continuing its fiscal reforms agenda to strengthen public finances
once the economy recovers. The formulation of the FRA reflects its commitment and strategy for
sound fiscal management. This reform initiative will further enhance the credibility of its fiscal
policy conduct towards achieving long-term public finance sustainability and macroeconomic
stability. The FRA will also provide a robust framework for the Government to improve transparency
and accountability in fiscal management.
5HIHUHQFH
Fitch Ratings (2021), Malaysia Rating Report. Retrieved from https://www.fitchratings.com
IMF (2021), Malaysia: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the
Executive Director for Malaysia, IMF Publishing, Washington D.C. Retrieved from https://www.imf.
org
Lienert, I. (2010). Should Advanced Countries Adopt a Fiscal Responsibility Law?, IMF Working
Paper, International Monetary Fund. Retrieved from https://www.imf.org

Ministry of Finance, Malaysia (2019), Fiscal Outlook and Federal Government Revenue Estimates
2020. Retrieved from https://www.mof.gov.my
Ministry of Finance, Malaysia (2020), Fiscal Outlook and Federal Government Revenue Estimates
2021. Retrieved from https://www.mof.gov.my
Ministry of Finance, Malaysia (2021), Fiscal Updates 2020. Retrieved from https://www.mof.gov.my
Moody’s Investor Service (2021), Government of Malaysia – A3 Stable: Update following change in
forecasts. Retrieved from https://www.moodys.com/research
OECD (2021), OECD Economic Surveys: Malaysia 2021, OECD Publishing, Paris. Retrieved from
https://www.oecd.org
Schaechter A., Kinda T., Budina N., & Weber A., (2012). Fiscal Rules in Response to the Crisis –
Toward the “Next-Generation” Rules. A New Dataset, IMF Working Paper, International Monetary
Fund. Retrieved from https://www.imf.org
Conclusion assistance system and public procurement.

The publications have received positive
and constructive feedback from various
The prolonged COVID-19 crisis has forced the
Government to continue providing additional stakeholders. These initiatives reinforce the
fiscal support to bolster the healthcare system, Government’s commitment to improving
safeguard the people and facilitate economic governance in budgetary and public finance
recovery. The Government is confident that management.
the rollout of the NRP and the implementation
of PICK will facilitate a safe and systematic Recognising the importance of providing fiscal
reopening of the economic and social sectors, support to sustain growth, it is also imperative
thus boosting the growth momentum. to strengthen public finance management
Furthermore, the 12MP will provide the overall and rebuild fiscal buffers promptly. As a
policy framework for structural reforms and responsible Government, the temporary
medium-term directions in terms of investment increase in the statutory debt ceiling will be
in public infrastructure, human capital, bridging followed by revenue enhancement measures
the development gap between regions and to reduce its fiscal burden. This will help
narrowing income disparities between groups. the build-up of sufficient buffers to provide
counter-cyclical measures in mitigating
As one of the initiatives to enhance fiscal unexpected circumstances in the future. More
transparency and accountability and encourage importantly, institutional reform initiatives,
public participation, the Government has such as the Fiscal Responsibility Act, MTRS and
published its inaugural Pre-Budget Statement Public Expenditure Review, will be pursued in
and a series of public consultation papers ensuring fiscal governance and medium-term
on fiscal legislation, tax reforms, social sustainability.

ࢯࢸࢰࣣࣳࢥ 1.1. Federal Government Overall and Primary Balance
% GDP
0
-1 (1.0)
(0.8)
(1.2) (1.1) (1.2)
(1.3)
(1.7) (1.6)
-2
(2.3)
-3 (2.7) (2.9)
(3.1) (3.0) (3.2) (3.1)
(3.4) (3.4) (3.4) (3.3)
-4 (3.8) (3.7) (3.8) (3.9)
(4.3)
(4.6) (4.7) (4.7)
-5
(5.3)
-6 FISCAL BALANCE
(6.0)
(6.2)
PRIMARY BALANCE (6.5)
-7 (6.7)
-8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021R 2022B
ࢯࢸࢰࣣࣳࢥ 1.2. Federal Government Revenue, Operating Expenditure and Current Balance
RM billion
280 REVENUE
OPERATING EXPENDITURE
210 CURRENT ACCOUNT BALANCE
140
70
-70
-140
-210
-280
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021R 2022B
ࢯࢸࢰࣣࣳࢥ 1.3. Federal Government MTFF Overall Balance ࢯࢸࢰࣣࣳࢥ 1.4. Revised Fiscal Position in 2021
% GDP Fiscal deficit (% GDP)

0
-1 FISCAL CONSOLIDATION PATH
2.6 0.7
-2 1.7 1.4
1.5
borrowings
Additional
2.9
-3 1.4 0.9
2.4
0.21
-4
-5 2.4
5.4
5.4
3.2
-6
-7
09
20 B
10
20 1
12
13
14
20 5
16
20 8
20 9
20 20
20 3
24
20 8
20 1R
07
17
2021 Stimulus Revenue Revenue Expenditure 2021

1
1
1
22
2
0
20
20
20
20
20
20
20
20
20
Budget packages shortfall measures measures estimated

position
Note: 2021: Revised estimate
2022: Budget estimate, excluding 2022 Budget measures
Source: Ministry of Finance, Malaysia 1
Reflecting lower nominal GDP

Federal
Government
Revenue
13 5 ࣔࣾ ࢥ ࣣࣾ ࢸ ࢥ ࣿ
13 5 ࣣ ࢥ ࣾ ࢥ ࣎ࣳࢥࢸ ࣎
Feature Article - Medium-Term Revenue
Strategy: A Call for Revenue Reforms in
Malaysia
࣮ࣔࣳࣇࣔࣔࣅࢯࣣࣔ
14 3 ࢛࢛ࣔ࣎ࣇࣳࣧ ࢸࣔ࣎
ࣧࢥ࢛࣮ࢸࣔ࣎ ࢯࢥࢡࢥࣣࢍࣇ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࣣࢥࣾࢥ࣎ࣳࢥ
Federal Government Revenue
Overview RM225.1 billion (15.9% to GDP) in 2020. The

1.8% decline in total revenue is mainly due
to the fall in proceeds from non-tax revenue
The COVID-19 pandemic has led to the
as a result of lower investment income. In
re-enforcement of containment measures
contrast, tax revenue, which constitutes 73.2%
which have affected the economy, business
of total revenue (10.7% to GDP), is estimated
operations and social interactions. This has
to increase 4.8% to RM161.8 billion (2020:
resulted in the provision of fiscal support
RM154.4 billion), while non-tax revenue is
among others via tax incentives and reliefs to
expected to record RM59.2 billion (3.9% to
cushion the impact of the pandemic. Hence,
GDP), representing 26.8% of total revenue.
revenue is expected to underperform for the
year, constraining fiscal space and effort to
'LUHFW WD[ is anticipated to turn around by
rejuvenate the economy.
6.7% to RM120 billion, mainly contributed by
higher companies income tax (CITA) collection
However, the implementation of the National
of RM60.6 billion. The better performance
Recovery Plan (NRP) and acceleration of
is a consequence of a low base effect,
the nationwide vaccination programme are
supported by several factors such as higher
expected to boost recovery and revenue
tax instalment payments from the corporate
with the gradual reopening of the economy.
sector in 2021 following tax deferments
High commodity prices coupled with revenue
provided in 2020. Higher collection in CITA
enhancement initiatives that were undertaken
was also due to improved performance of
during the year have also provided some
the services and manufacturing sectors and
upside to revenue collection.
higher collection from profit-making entities
that were not affected by the pandemic, mainly
As part of the effort to improve inclusivity
in the banking, pharmaceutical and palm oil
and transparency in preparing annual budget,
industries. However, individual income tax is
the inaugural Pre-Budget Statement and four
estimated to decline by 6.6% to RM36.4 billion
Public Consultation Papers were issued.
due to fewer taxable individual taxpayers
One of the papers, namely Review of Tax
following higher unemployment rate at 4.5%.
Incentives, was published to solicit views
Similarly, the petroleum income tax (PITA)
on the proposal to review the overall tax
is estimated lower at RM11.5 billion (2020:
incentive framework. This initiative signifies a
RM12.8 billion) attributed to higher extraction
fresh approach by the Government to engage
costs borne by petroleum companies,
business communities and the public to
albeit increasing crude oil prices in 2021.
strengthen the overall tax administration and
compliance. Nevertheless, the collection of other direct
taxes, mainly consisting of stamp duties and
real property gains tax (RPGT), is estimated
Revenue in 2021 to increase to RM8.2 billion (2020: RM7.6
billion), supported by higher property market
Federal Government revenue in 2021 is transactions following the rise in value and
projected to register a lower collection of volume of properties sales from all market and
RM221 billion (14.6% to GDP) compared with price segments.1
1
Valuation and Property Services Department. Retrieved from https://napic.jpph.gov.my/portal

࣮ࢍ࢚ࣇࢥ Federal Government Revenue

2020 – 2022
ࣣ࣍ ࣍ࢸࣇࣇࢸࣔ࣎ ࢛ࢵࢍ࣎ࢰࢥ ࣧࢵࢍࣣࢥ

࢛ࣔ࣍࣠ࣔ࣎ࢥ࣮࣎ મય મય

7D[ UHYHQXH -14.5 4.8 5.9 68.6 73.2 73.2
Direct tax 112,511 120,048 127,334 -16.5 6.7 6.1 50.0 54.3 54.4
of which:
CITA 50,065 60,588 65,499 -21.5 21.0 8.1 22.2 27.4 28.0
Individual 38,953 36,400 37,510 0.7 -6.6 3.0 17.3 16.5 16.0
PITA 12,772 11,500 12,400 -38.5 -10.0 7.8 5.7 5.2 5.3
Indirect tax 41,887 41,782 44,040 -8.6 -0.3 5.4 18.6 18.9 18.8
of which:
SST 26,773 26,528 27,560 -3.2 -0.9 3.9 11.9 12.0 11.8
Excise duties 9,855 9,760 10,200 -6.2 -1.0 4.5 4.4 4.4 4.3
Import duty 2,346 2,330 2,500 -14.2 -0.7 7.3 1.0 1.1 1.1
Export duty 746 1,406 1,610 -33.7 88.5 14.5 0.3 0.6 0.7
1RQWD[ UHYHQXH -15.7 -16.2 5.8 31.4 26.8 26.8
of which:
Licences and permits 10,932 10,252 10,958 -24.6 -6.2 6.9 4.9 4.6 4.7
Investment income 46,067 35,989 39,457 -23.3 -21.9 9.6 20.5 16.3 16.9
7RWDO UHYHQXH -14.9 -1.8 5.9 100.0 100.0 100.0
6KDUH WR *'3 15.9 14.6 14.3
1
Revised estimate
2
Budget estimate excluding 2022 Budget measures
,QGLUHFW WD[ collection is estimated to decline revision of the projected total industry volume
marginally by 0.3% to record RM41.8 billion (TIV) for motor vehicles by 12.3% to about
(2020: RM41.9 billion), mainly due to lower 500,000 units for the year.2
collection from Sales Tax and Service Tax
(SST) and excise duties. SST is expected However, the lower collection from total
to record RM26.5 billion, a slight decline indirect tax is cushioned by the increase in
by 0.9% attributed to the extension of the the collection from the windfall profit levy
sales tax exemptions on passenger vehicles and export duty for crude palm oil (CPO). The
until 31 December 2021 and the impact of windfall profit levy increased to RM0.9 billion in
the containment measures on consumers 2021 (2020: RM0.2 billion) on account of higher
and businesses. Similarly, excise duties are CPO prices of around RM4,000 per tonne,
forecast to record a lesser collection at RM9.8 well above the threshold price of RM2,500 per
billion due to lower motor vehicle production tonne in Peninsular Malaysia and RM3,000
following closures of plants in the entire value per tonne in Sabah and Sarawak. The windfall
chain during the Movement Control Order profit levy is collected from palm oil producers
(MCO) period. This is in line with downward based on the output of fresh fruit bunches.
2
Malaysia Automotive Association. Market Review First Half 2021. Retrieved from http://www.maa.org.my/news.html

In contrast, the export duty is collected from charges. Receipts from licences and permits
exporters based on CPO monthly gazetted are expected to decline to RM10.3 billion (2020:
market price, while for crude petroleum, RM10.9 billion) due to lower proceeds from
export duty is charged at 10% of the exported petroleum royalties. Motor vehicle licences
oil profit. In this regard, the total export duty collection is forecast to be stable at around
collection for 2021 is estimated at RM1.4 RM2.8 billion, taking into account the relief
billion, of which RM0.7 billion is from CPO and granted by the Government in renewals of new
RM0.6 billion is from crude petroleum. licences. Similarly, the levy on foreign workers
is estimated to maintain around RM1.7 billion.
1RQWD[ UHYHQXH is estimated lower at RM59.2
billion in 2021 (2020: RM70.7 billion), largely In 2021, the share of SHWUROHXPUHODWHG
due to lower investment income, particularly UHYHQXH is projected to be lower at 19.2%
dividends from PETRONAS amounting to of total revenue (2020: 24.9%). Although its
RM25 billion (2020: RM34 billion). However, share is lower, the RM42.5 billion revenue is
the Government received higher dividends estimated to be higher compared to Budget
from Bank Negara Malaysia (BNM) amounting estimates of RM37.8 billion, resulting from
to RM4 billion (2020: RM3.5 billion) and higher PETRONAS dividends in line with
is expected to receive RM2 billion from improving global crude oil prices. 1RQ
Khazanah Nasional Berhad (2020: RM1 billion). SHWUROHXP UHYHQXH is projected to improve by
Furthermore, the Government has received 5.6% to RM178.5 billion (2020: RM169 billion),
a special payment of RM5 billion from the anchored by better collection from tax revenue
Retirement Fund (Incorporated) (KWAP) to that reflects a mild economic recovery in 2021
partly finance the current year’s retirement compared with the previous year.
0HGLXP7HUP5HYHQXH6WUDWHJ\$&DOOIRU5HYHQXH5HIRUPVLQ0DOD\VLD
,QWURGXFWLRQ
Public finance management involves an efficient mobilisation of fiscal resources to achieve national
development agenda. Thus, it is crucial to ensure stable revenue generation to support expenditure
needs, particularly in meeting the country’s socio economic objectives. The Government has
embarked on fiscal reform initiatives, among others, to enhance its revenue base, as evidenced by
the formation of the Tax Reform Committee (TRC) in 2018. The TRC is tasked to review the current
tax system, propose new tax measures to address tax gaps and incorporate the informal economy
into the tax net. As a policy continuation, the Government is formulating a revenue framework,
namely the Medium-Term Revenue Strategy (MTRS), that will adopt and adapt international best
practices in modernising Malaysia’s tax system and administration.
The MTRS is a comprehensive approach in undertaking effective tax reforms to boost revenues and
improve the tax system over the medium term through a country-led and whole-of-government
approach. In general, there are four main aspects of an MTRS - defining revenue and other goals,
reforming the tax system, sustaining political commitment and coordinating capacity building.
The framework provides a high-level road map of tax reforms to establish a modern and robust
system that is fair and equitable and provides an efficient revenue administration. Nevertheless,
the successful implementation of an MTRS will require firm support from key stakeholders in our
society.

ࢯࢸࢰࣣࣳࢥ 1. Main Components of the Medium-Term Revenue Strategy
Revenue & Tax System

Other Goals Reform (TSR)
to finance to meet
expenditure the goals
needs
Medium-
Term
Revenue
Strategy
Sustained Coordinated
Political Capacity -
Commitment building
to fully develop to support TSR
and implement implementation
TSR
Source: The Platform for Collaboration on Tax
5DWLRQDOH IRU 0756
The introduction of MTRS is timely to address current issues relating to Federal Government
revenue, mainly a narrow tax base, ineffective tax incentives, tax avoidance and tax evasion and
untapped informal sectors. Total revenue as a percentage to gross domestic product (GDP) has
declined from 21.4% in 2012 to 15.9% in 2020, which is relatively low compared with rating peer
countries. In addition, a high reliance on direct tax, now constituting half of total revenue, renders
the revenue collection susceptible to economic growth and business cycles. Thus, an effective
and sustainable revenue collection for Malaysia is crucial to ensure sufficient financing of total
expenditures.
MTRS requires a comprehensive reform plan for the tax system, which encompasses a clear
policy setting framework, enhancement of revenue agencies, and strengthening the legal
framework. The adjustment in policy setting will include detailed diagnoses of the economic
and social impact of the tax reforms and a multi-year tax policy plan. These will lead to policy
certainty and predictability, and in turn, boost investors’ confidence. In addition, the adoption of
a quality framework will avoid creating perverse incentives, excessive discretion of legal power
and aggressive tax planning. Through the MTRS, Malaysia stands to gain not only in enhancing
the potential of revenue collection but, more importantly, in having a more transparent and
accountable tax system.
7KH 0756 )UDPHZRUN LQ 0DOD\VLD
The adoption of MTRS in Malaysia will be implemented based on these objectives:
a) To ensure sustainable revenue generation in the medium term in line with GDP growth;
b) To ensure better compliance through effective and efficient tax administration; and
c) To strengthen the legal framework in enhancing the tax system and policy formulation.

At the initial stage, the formulation will focus on the taxation system anchored on three main pillars
as follows:
a) Tax Policy
The main factors influencing the tax policy direction include the business and macroeconomic
environment, taxpayers’ capacity, and the effectiveness of revenue agencies. The designing of
tax policy will incorporate analysis of the socio economic impact and the sources of revenue
generation, accompanied by a multi-year roadmap of tax policy options. The roadmap will
be subjected to periodical reviews and updated according to national development policy
objectives and priorities.
Measures to introduce new taxes or improve the existing system should be based on efficiency,
fairness, simplicity, flexibility, transparency and effectiveness.1 Currently, the Government
is considering options to reduce the reliance on direct taxes and widen the revenue base
by shifting to consumption-based tax. The latter can be further improved by reviewing the
taxation and tax rate scope of the existing Sales Tax and Service Tax (SST). Alternatively, the
Government can opt for a more reliable consumption tax base such as value-added tax (VAT).
The VAT will be able to mitigate the tax-cascading impact of SST, manage the cost of doing
business, and enhance compliance and transparency. MTRS also provides an opportunity
for the Government to further reduce its dependency on petroleum-related revenue and
introduce revenue initiatives that support its sustainable development agenda. In addition, the
Government will intensify its efforts to improve tax incentives for investment and explore new
sources of tax revenue, such as taxation on capital gains and the digital economy.
b) Tax Administration
Tax administration reforms should be focused on achieving higher compliance, minimising

tax avoidance and tax evasion with minimum cost to the tax payers and the authorities, and
managing tax incentives to optimise private investments. A multi-agency collaboration to
streamline data sharing was initially introduced under the Collection Intelligence Arrangement
(CIA), involving the Inland Revenue Board of Malaysia (IRB), the Royal Malaysian Customs
Department (RMCD) and the Companies Commission of Malaysia (CCM). The collaboration is
further enhanced with the formation of a task force involving several enforcement agencies
including the Malaysia Anti-Corruption Commission (MACC). In addition, the existing National
Committee Investment (NCI) was improved and is now being co-chaired by the Malaysia
Investment Development Authority (MIDA) and the Ministry of Finance (MOF) to reduce
bureaucracy, expedite investment approvals and ensure the effectiveness of the tax incentives
administration.
For better tax administration, continuous efforts will be directed to enhance the revenue
agencies’ effectiveness while ensuring greater taxpayer compliance. Thus, resources will
be allocated to build capacity, improve IT infrastructure and invest in big data analytics
to modernise the relevant agencies. It is worth noting that advanced economies, such as
Canada, have only a single revenue agency to collect and administer national revenues in
their countries. This approach has enabled better data integration, resource management and
enforcement.
1
Based on IMF criteria of good tax, revenue forecasting and analysis

c) Tax Legislative Framework
The tax legislative framework will be regularly reviewed and improved to ensure that provisions
in the tax law and guidelines on processes and procedures are simplified, consistent, and in
line with international best practices. For instance, in response to the new digital economy
environment, the Government expanded the scope of services tax to cover digital content
provided by non-resident providers. The Government is also considering several measures to
strengthen its tax governance framework. These include a revision of the taxation legislation
relating to insurance and takaful, and banking industry. In addition, the Government will
provide guidelines or public rulings to facilitate the interpretation of the law for specialised
industries, such as on Petroleum Act (Income Tax) 1967.
At the international front, Malaysia is a member of the OECD Base Erosion and Profit Shifting
Action Plan (BEPS) under the Organization for Economic Co-operation and Development
(OECD) Global Tax Initiative to address the issues of cross-border tax evasion. The action plan
includes tax-related proposals on the digital economy through Pillar One and Pillar Two to
ensure that Malaysia has the right to tax digital economy activities. Pillar One emphasises
the determination of a country’s tax rights based on BEPS’ nexus. Meanwhile, Pillar Two will
introduce a global minimum effective tax rate to ensure that tax element does not become the
key factor for attracting foreign direct investments, thus addressing aggressive tax planning by
multinational enterprises.
ࢯࢸࢰࣣࣳࢥ2. The Medium-Term Revenue Strategy Framework in Malaysia
i. Ensure sustainable
revenue generation;
ii. Better compliance through effective and
effcient tax administration; and
iii. Strengthen the legal framework
MTRS FRAMEWORK
Tax Tax Tax

Policy Administration Legislation
Framework
MTRS INITIATIVES
Review of tax incentives and explore new sources of tax revenue
Enhance the revenue agencies’ effectiveness
Revision of the legislation on the taxation

&XUUHQW 3URJUHVV
In 2020, the MOF received technical assistance from the International Monetary Fund (IMF) to formulate
an MTRS for Malaysia. Subsequently, Steering and Technical Committees on MTRS were established with
representatives from MOF, the Economic Planning Unit, the Central Bank of Malaysia, the RMCD and the IRB.
The committees are mandated to plan, administer and monitor to ensure the successful execution of the
MTRS.
To date, the Technical Committee is formulating MTRS strategies and measures to be implemented in
phases. Upon approval by the Steering Committee, engagement sessions with key stakeholders, industry
players and professional bodies will be conducted. Feedback from the sessions will serve as value-added
LQSXWVLQWKHࢉQDOUHSRUW,WZLOOFRQVLVWRIQHZWD[PHDVXUHVDQGUHFRPPHQGDWLRQVIRUDEHWWHUWD[
DGPLQLVWUDWLRQVXSSRUWHGE\DQLPSURYHGOHJDOIUDPHZRUN7KHࢉQDOUHSRUWLVVFKHGXOHGWREHHQGRUVHGE\
the Government in 2022.
&KDOOHQJHV DQG WKH :D\ )RUZDUG
In this challenging pandemic crisis, the Government prioritises economic recovery measures to provide
support for businesses and alleviate the burden of the rakyat. As such, the formulation of the MTRS will have
WRDFFRPPRGDWHWKHQDWLRQȆVLPPHGLDWHQHHGVZKLOHFUHDWLQJVXࢇFLHQWࢉVFDOVSDFHSRVWFULVLV&RQVHQVXV
building at various levels of stakeholders is also critical to managing expectation and compliance, which
necessitates continuous engagement by the Government. It is also important to build knowledge and
technical capacity to formulate and implement MTRS in an orderly and systematic manner.
The initiatives under MTRS are envisaged to complement the Fiscal Responsibility Act (FRA) initiative, which
will further enhance the transparency of the tax system in Malaysia. In addition, the MTRS will be aligned
ZLWKWKH7ZHOIWK0DOD\VLD3ODQ03ȁSDUWLFXODUO\WRHQVXUHVXࢇFLHQWUHYHQXHJHQHUDWLRQWR
ࢉQDQFHH[SHQGLWXUHQHHGVXQGHUWKH3ODQ,WZLOODOVRFRQVLGHUࢉQGLQJVIURPSUHYLRXVVWXGLHVWKDWKDYHEHHQ
conducted, such as recommendations from the TRC. Moving forward, Malaysia will extend the scope of the
MTRS to non-tax revenue in the next phase of its implementation to further widen the revenue base.
&RQFOXVLRQ
2YHUDOOWRHQVXUHVXVWDLQDEOHUHYHQXHJHQHUDWLRQLWLVWLPHIRU0DOD\VLDWRXQGHUWDNHEROGDQGHࢆHFWLYH
reforms in its tax system and policy design comprehensively and inclusively through the adoption of the
0756$VXFFHVVIXOWD[UHIRUPLQLWLDWLYHZLOOUHEXLOGࢉVFDOVSDFHHQKDQFHHFRQRPLFUHVLOLHQFHDQGXOWLPDWHO\
UHWXUQWKHFRXQWU\WRLWVࢉVFDOFRQVROLGDWLRQSDWK7KHUHIRUPVZLOODOVRSURYLGHWKH*RYHUQPHQWZLWK
WKHࢊH[LELOLW\IRUFRXQWHUF\FOLFDOPHDVXUHVWRVXSSRUWHFRQRPLFUHFRYHU\SRVWFULVLVZKLOHHQVXULQJࢉVFDO
sustainability in the longer term.
5HIHUHQFH
Betts, S., De Mets, P., Ossa, R. L., & Rojas, E. (2021). Postcrisis Revenue Generation for Tax
Administrations, IMF COVID-19 Special Series. Retrieved from https://www.imf.org/en/Publications/
SPROLLs/covid19-special-notes#fiscal
Custers, A., Dom, R., Holzman, B., & Junquera-Varela, R. F. (2020). How Governments Can Use the
Coronavirus Pandemic to Build Better Tax Systems. Retrieved from https://blogs.worldbank.org/
governance/how-governments-can-use-coronavirus-pandemic-build-better-tax-systems

Gaspar, V., & Toro, J. (2019). Medium-term Revenue Strategy (MTRS) – Taxation and Development.
Retrieved from https://www.imf.org/en/News/Articles/2019/10/28/sp102919-mediumterm-revenue-
strategy
Hoel, A. (2020). Innovations in Tax Compliance. Retrieved from https://www.worldbank.org/en/topic/

macroeconomics/brief/innovations-in-tax-compliance
International Monetary Fund, Organisation for Economic Co-operation and Development, United
Nations, & World Bank Group (2016). Enhancing the Effectiveness of External Support in Building
Tax Capacity in Developing Countries. In Policy Papers (Vol. 2016, Issue 41). Retrieved from
https://doi.org/10.5089/9781498345439.007
International Monetary Fund, Organisation for Economic Co-operation and Development, United
Nations, & World Bank Group (2020). PCT Progress Report 2020. In Platform for Collaboration on
Tax.
OECD/WBG/CIAT/IDB (2021). VAT Digital Toolkit for Latin America and the Caribbean. OECD, Paris.
Retrieved from https://www.oecd.org/tax/consumption/vat-digital-toolkit-for-latin-america-and-the-
caribbean.htm
Organisation for Economic Co-operation and Development (2021). Revenue Mobilisation Through Tax
Transparency: Lessons from Uganda’s transformative journey.
Papua New Guinea Department of Treasury (2017). Papua New Guinea Medium Term Revenue Strategy
2018-2022.
Platform for Collaboration on Tax (2017). Concept Note on the Medium-Term Revenue Strategy (MTRS)
(p. 7). Retrieved from https://www.tax-platform.org/sites/pct/files/publications/MTRS Concept Note
- Feb 6 2017.pdf
Platform for Collaboration on Tax (2020). Medium-Term Revenue Strategy (MTRS). Retrieved from
https://www.tax-platform.org/medium-term-revenue-strategy
Trabandt, M., Nozaki, M., Fund, M., Cagas, M. A., Qin, D., Quising, P., Bank, D., Reduction, D.,
Kalb, A., Moessinger, M. D., Monteforte, L., Jaramillo, L., Fund, I. M., Economic, G., Affairs, F.,
Commission, E., Fund, I. M., Ratings, C., Poplawski-ribeiro, M., … Senhadji, A. (2018). Implementing
a Medium-Term Revenue Strategy. 4(1), 108–139.
Outlook for 2022 'LUHFW WD[ collection is projected to increase

by 6.1% to RM127.3 billion, constituting
The Federal Government revenue is projected 74.3% of total tax revenue, driven by better
to increase by 5.9% to RM234 billion, in corporate earnings prospects resulting from
line with better economic prospects. 7D[ the acceleration in the vaccination programme
UHYHQXH remains the major contributor to and anticipated economic recovery. Hence,
total revenue, consisting of 73.2% of the total CITA remains the largest contributor to the
share and is expected to increase to RM171.4 increase in direct tax at RM65.5 billion in 2022.
billion. However, as a percentage to GDP, it is This is followed by individual income tax,
estimated to decline slightly to 10.5% reflecting which is expected to improve by 3% to RM37.5
lower buoyancy during the economic recovery billion, consistent with expected improvements
period. in the job market. Similarly, PITA is expected

to record a higher collection of RM12.4 billion. RM5 billion is expected from KWAP as a
Furthermore, revenue from other components contribution to partly finance retirement
of direct tax, namely stamp duties and RPGT, charges. The collection from licences and
are expected to be higher at RM6.6 billion and permits is expected to increase slightly to
RM1.8 billion, respectively, on expectations of RM10.9 billion, attributed to higher proceeds
higher value and volume of transactions from from petroleum royalties at RM4 billion. Other
the property segment. major components under licences and permits,
namely motor vehicles licences and levy on
,QGLUHFW WD[ is forecast to improve by 5.4% foreign workers are estimated to be stable at
to RM44 billion. This is mainly contributed by RM3 billion and RM1.9 billion, respectively.
SST collection with a share of 62.5% to total
indirect tax, registering RM27.6 billion or 1.7% In 2022, SHWUROHXPUHODWHG UHYHQXH is
to GDP, supported by improving consumer and forecast to register RM43.9 billion or 18.8%
business sentiments. Of this, RM14.6 billion to total revenue, with PETRONAS dividends
are from sales tax while RM13 billion are from accounting for more than half of the total.
service tax, attributed to a higher projection 1RQSHWUROHXP UHYHQXH is also projected to
of motor vehicle TIV as well as better outlook increase by 6.5% to RM190.1 billion, reflecting
anticipated from telecommunications and better revenue diversification on the back of a
insurance sectors. In consonance with the favourable economic outlook. The Government
expected pick-up in motor vehicle production will continue to ensure sustainable non-
by 21% in 2022, excise duties collection is petroleum revenue generation to meet
projected to improve to RM10.2 billion.3 expenditure commitments, particularly to serve
the needs of the rakyat.
Given the necessity to support growth,
the expansionary fiscal spending will also
need to be backed by improving revenue Conclusion
collection. Thus, the Government will continue
to enhance tax auditing and compliance to As a responsible revenue administrator, the
ensure that tax dues are collected accordingly. Government is committed to enhancing
These initiatives will be complemented its collection efficiency with the advent of
by revenue administration enhancements technology and innovation. This initiative
such as simplifying tax procedures and will improve service delivery and simplify
reducing bureaucratic tape to improve clarity procedures and thus, increase tax compliance.
and certainties, leading to tax collection With the commitment to support fiscal reform
efficiency and effectiveness. In addition, to initiatives, the adoption of the Medium-Term
place Malaysia as a preferred investment Revenue Strategy (MTRS) will help streamline
destination, the tax incentive framework will be its tax policy, improve tax administration and
continuously enhanced to avoid distortions in enhance the legal framework. In addition,
resource allocations in line with international the Government will continue to assess its
best practices. revenue ecosystem holistically while engaging
the business community in developing a good
1RQWD[ UHYHQXH is estimated to increase revenue policy in line with international best
by 5.8% to RM62.6 billion, primarily due to practices. These efforts will lead to sustainable
higher proceeds from investment income. revenue generation, which is crucial to
The annual dividends from PETRONAS and rebuilding buffers for fiscal sustainability and
BNM are expected at RM25 billion and RM5 debt affordability while facilitating counter-
billion, respectively. As in 2021, a total of cyclical measures to mitigate any crisis.
3
Malaysia Automotive Association. Market Review 1st Half 2021. Retrieved from http://www.maa.org.my/news.html

ࢯࢸࢰࣣࣳࢥ 2.1. Petroleum-Related and Non-Petroleum Revenue

(% of total revenue)
18.8 Petroleum
24.9 19.2
Petroleum 41.3 35.4
19.7 20.1
18.9
19.2 12.0 11.8

19.0 11.9
Non-
7.6 petroleum
Non- 7.5
petroleum
49.1 49.3
44.3
37.8
32.2
2009 2010 2020 20211 20222
SST PETROLEUM REVENUE

DIRECT TAX (EXCLUDING PITA) OTHERS
ࢯࢸࢰࣣࣳࢥ 2.2. Revenue as Percentage to GDP
22.3
19.4
Petroleum 9.2
15.9
6.9
14.6 14.3
4.0
2.8 2.7 Petroleum
1.0
1.0
1.0 0.5 1.0 1.2 1.0
1.7 1.5 0.9 0.7 0.9
1.8 1.7 1.7
Non- 2.2 2.2
1.2 1.1 1.0
petroleum Non-
petroleum
7.6
7.2 7.3 7.0 7.1 7.0
2009 2010 2020 20211 20222
SST PETROLEUM REVENUE
INDIRECT TAX (EXCLUDING SST) OTHERS

DIRECT TAX (EXCLUDING PITA) INVESTMENT INCOME (EXCLUDING PETRONAS DIVIDEND)
1
Revise estimate
2
Budget estimate excluding 2022 Budget measures

Federal
Government
Expenditure
147 ࣠ࢥ ࣣ ࢯࣣࣔ ࣍ ࢍ ࢛࣎ࢥ
࢛ࣔࣾ ࢸ ࢡ ࢯࣳ࣎ࢡ
I n f o r m a t i o n B ox - CO V I D -19 F u n d U p d a t e s
15 5 ࣮ࣔࣳࣇࣔࣔࣅࢯࣣࣔ
157 ࢯࢥ ࢡࢥ ࣣ ࢍ ࣇࣣ ࢥ࢛ࣔࣾ ࢥ ࣣ ࢍ ࢚ࣇࢥ

ࣇࣔࢍ ࣎ ࣧ
15 8 ࢛࢛ࣔ࣎ࣇࣳࣧ ࢸࣔ࣎
ࣧࢥ࢛࣮ࢸࣔ࣎ ࢯࢥࢡࢥࣣࢍࣇ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࢥऄ࣠ࢥ࣎ࢡࢸ࣮ࣣࣳࢥ
Federal Government Expenditure
Overview release of the inaugural Pre-Budget Statement

and Public Consultation Papers for the
The resurgence of COVID-19 cases has forced preparation of 2022 Budget. In addition, the
the Government to reimpose movement Government will regularly conduct expenditure
control orders (MCOs) that impacted almost reviews to ensure effective and efficient
all economic sectors and limit social activities. spending, thus support fiscal consolidation in
A series of assistance and economic stimulus the medium term.
packages was swiftly introduced to provide
immediate assistance to the rakyat and
businesses. These packages adopt a targeted Performance 2021
approach in ensuring impactful measures
in effectively softening the impact of the The Federal Government’s total expenditure
pandemic. for 2021 was budgeted at RM322.5 billion.
However, during the year, a series of four
The additional fiscal support was mainly for assistance and economic stimulus packages,
strengthening the public health system and namely Perlindungan Ekonomi dan Rakyat
providing cash assistance to households Malaysia (PERMAI), Strategic Programme
and businesses. This has resulted in higher to Empower the People and Economy
spending, particularly for commitments (PEMERKASA), Strategic Programme to
under the COVID-19 Fund. The additional Empower the People and Economy Plus
spending was offset by a rigorous expenditure (PEMERKASA+) and National People’s Well-Being
recalibration. In addition, the Government and Economic Recovery Package (PEMULIH),
continues to manage its fiscal resources totalling RM225 billion, were announced with a
by enhancing spending efficiency, reducing fiscal injection of RM25 billion. In general, the
leakages and optimising operating expenditure packages were in the form of cash assistance
in the new norm. These initiatives are for rakyat and businesses, particularly for
complemented by close monitoring and regular those affected by the extended MCOs due to
reporting on a weekly basis, in line with the pandemic. Furthermore, the additional
principles of accountability and transparency. stimulus and containment measures have put
pressure on revenue which is projected to be
In general, the expenditure commitments lower than Budget estimates. The situation
during the pandemic crisis have expanded necessitated an expenditure recalibration,
due to the Government’s priority to provide particularly operating expenditure, which has
sufficient support to the economy. The roll-out to be fully funded by revenue in line with
of the National Recovery Plan (NRP) and the the Federal Constitution. Hence, the Federal
steady progress of the vaccination programme Government’s total expenditure for 2021 was
will facilitate the reopening of businesses, revised downwards to RM320.6 billion, albeit
thus help the economy return to its potential higher than total spending in the previous year
growth trajectory. The implementation of the (2020: RM314 billion).
Twelfth Malaysia Plan, 2021 – 2025 (12MP)
will also catalyse the recovery process and The recalibration involved a net reduction of
steer the nation towards achieving prosperity, RM1.9 billion in expenditure, resulting from
inclusivity and sustainability in the medium expenditure savings amounting to RM23.9
term. At the same time, the principles of billion, of which RM22 billion was redirected to
accountability and good governance will finance additional direct fiscal injection under
continue to be enhanced in line with global the COVID-19 Fund. Savings in expenditure
best practices, as illustrated through the were generated from the deferment of certain

programmes and projects, suspension of non- statutory bodies with high reserves. Similarly,
critical programmes, revision of allocations for supplies and services are also revised lower
budget measures, as well as expected shortfall due to the reclassifications of development-
in spending due to the delayed progress in the related items to DE and savings derived from
implementation of projects during the MCOs. the suspension of allocation for non-critical
items.
Of the total revised allocation, operating
expenditure (OE) is estimated at RM219.6 Compared with 2020, the revised OE at
billion (14.5% to GDP), development RM219.6 billion is lower by 2.2% (2020:
expenditure (DE) at RM62 billion (4.1% to RM224.6 billion). The lower allocation is
GDP), while the balance of RM39 billion (2.6% predominantly due to the reduced provision
to GDP) is for the COVID-19 Fund. The social for supplies and services at RM23.3 billion
sector remains as the largest beneficiary (2020: RM29.3 billion), particularly for repairs
at RM128.5 billion (40.1% of the total), and maintenance, professional services as well
followed by economic (RM66.9 billion; 20.9%), as office supplies. In addition, the outlays for
security (RM31.5 billion; 9.8%) and general subsidies and social assistance declined to
administration (RM16.7 billion; 5.2%) sectors. RM16.7 billion (2020: RM19.8 billion) mainly
Charged expenditures and transfer payments due to the financing of the cash assistance
consisting, among others, debt service charges, programme through COVID-19 Fund. However,
retirement charges, and transfers to states the decline is expected to be offset by
account for 24% of total expenditure. higher outlays for fuel subsidies. In addition,
emoluments and retirement charges are
The OE for 2021 is revised lower by 7.1% estimated to increase to RM84.5 billion (2020:
to RM219.6 billion from the original budget RM83 billion) and RM27.6 billion (2020: RM27.5
allocation of RM236.5 billion. The downward billion), respectively, mainly due to annual
revision is mainly attributed to savings in salary and pension increment. Similarly, debt
grants and transfers as well as supplies and service charges are estimated to increase by
services. The lower allocation for grants and 13.1% to RM39 billion (2020: RM34.5 billion),
transfers is due to budget cuts in grants to following higher financing needs for DE and
࣮ࢍ࢚ࣇࢥ Federal Government Operating Expenditure by Component,

2020 – 2022
࢛ࢵࢍ࣎ࢰࢥ ࣧࢵࢍࣣࢥ
ࣣ࣍ ࣍ࢸࣇࣇࢸࣔ࣎
2020 20211 20222 2020 20211 20222 2020 20211 20222
Emoluments 82,996 84,529 86,510 3.1 1.8 2.3 36.9 38.5 37.0
Retirement charges 27,533 27,581 28,067 6.3 0.2 1.8 12.3 12.6 12.0
Debt service charges 34,495 39,000 43,100 4.7 13.1 10.5 15.4 17.8 18.5
Grants and transfers to state 7,669 7,745 7,927 1.3 1.0 2.3 3.4 3.5 3.4
governments
Supplies and services 29,323 23,265 30,367 -6.9 -20.7 30.5 13.0 10.6 13.0
Subsidies and social assistance 19,769 16,701 17,352 -17.3 -15.5 3.9 8.8 7.6 7.4
Asset acquisition 631 415 533 -18.1 -34.2 28.4 0.3 0.2 0.2
Refunds and write-offs 654 511 375 -26.8 -21.9 -26.6 0.3 0.2 0.2
Grants to statutory bodies 10,291 13,190 14,066 -25.3 28.2 6.6 4.6 6.0 6.0
Others 11,239 6,663 5,203 -75.3 -40.7 -21.9 5.0 3.0 2.3
7RWDO -14.7 -2.2 6.3 100.0 100.0 100.0
6KDUH WR *'3 15.9 14.5 14.3
1
Revised estimate
2

COVID-19 related expenses, while grants and and construction of sewage treatment plants,
transfers to states and statutory bodies are providing and improving electricity and water
estimated to increase by 16.6% to RM20.9 supply, improving entrepreneurial skills for
billion (2020: RM18 billion). micro-, small- and medium-sized enterprises
(MSMEs) as well as encouraging and enhancing
The year 2021 marks the first year of the technological adoption among businesses. The
12MP. A sum of RM400 billion is allocated transport, energy and public utilities, and trade
for '( under the 12MP, a significant increase and industry subsectors constitute 29.6% of
of 61% compared to the actual expenditure total DE.
of RM248.5 billion for the Eleventh Malaysia
Plan. The allocation will be channelled to fund Compared with 2020, the outlays for the
new and ongoing projects and programmes social sector in 2021 are expected to increase
planned under the economic, social, security by 25.5% to RM17.3 billion (2020: RM13.8
and general administration sectors. These billion), with education and training, and
projects and programmes are aligned with the health remaining as the key subsectors. The
three key themes of 12MP, namely resetting education and training subsector receives
the economy; strengthening security, wellbeing the biggest provision of RM8.1 billion,
and inclusivity; and advancing sustainability. higher by 20.5% as compared with RM6.7
The themes resonate with the country’s longer- billion in 2020 mainly for the enhancement
term aspirations in the Shared Prosperity of technical and vocational education and
Vision 2030 and 2030 Agenda for Sustainable training (TVET) programmes; upgrading and
Development. renovation of schools, teachers’ quarters and
tertiary institutions; and extension of teaching
However, with the expenditure recalibration, hospitals. While for the health subsector, a
DE is revised lower to RM62 billion from the sum of RM4.4 billion or 7.1% of DE is allocated
original budget of RM69 billion. The downward for improving healthcare accessibility and
revision is also in line with the reassessment facilities, particularly for rural and outskirt
and deferment of several projects. Nonetheless, areas. Moreover, this expenditure also includes
the lower DE is offset by the reclassification enhancing and maintaining hospitals and
of several development-related items from OE. clinics, and purchasing vehicles and equipment.
Of the total, RM60.8 billion is direct allocation, Among the construction projects under this
while RM1.2 billion are loans to state subsector include hospitals in Tanjung Karang,
governments and Government-linked entities. Selangor and Pendang, Kedah as well as
expansion of Seberang Jaya Hospital in Pulau
As the Government continues to focus on Pinang. Meanwhile, the housing subsector
the economic sector, the allocation for this receives RM1.6 billion for the year, an increase
sector remains the largest with a share of of 55.9% from actual spending of RM1 billion
54.5%, followed by social (28%), security in 2020. The expenditure for the subsector is
(11.8%) and general administration (5.7%) focused on the People’s Housing Project (PPR)
sectors. Expenditure for the economic as well as upgrading and maintaining civil
sector is estimated at RM33.8 billion, mainly servants’ quarters.
for enhancing public transportation and
communication network infrastructure, A sum of RM7.3 billion, an increase of 26.5%
developing public utilities, escalating trade from the preceding year (2020: RM5.8 billion),
and industrial activities as well as boosting is allocated for the security sector. The bulk of
agriculture. The transport subsector is the allocation is for projects and programmes
allocated with RM13 billion, mainly to finance aimed at strengthening the nation’s defence
major ongoing projects, such as Electrified and internal security, including upgrading
Double Track Gemas-Johor Bahru and Pan of military and security equipment as well
Borneo Highway projects, as well as the as maintaining and upgrading the security
upgrading of federal roads throughout the integrated network system. Similarly, the
country. Energy and public utilities and trade allocation for the general administration sector
and industry subsectors are allocated RM3 increases by 17.6% to RM3.6 billion (2020:
billion and RM2.4 billion, respectively. Some RM3 billion). The outlays for the sector will
of the key projects and programmes under be mainly channelled to improve public sector
these subsectors include upgrading works delivery and productivity, with the focus on

࣮ࢍ࢚ࣇࢥ Federal Government Development Expenditure by Sector,

2020 – 2022
࢛ࢵࢍ࣎ࢰࢥ ࣧࢵࢍࣣࢥ
ࣧࢥ࢛࣮ࣣࣔ મય મય
2020 20211 20222 2020 20211 20222 2020 20211 20222
Economic 28,712 -8.3 17.6 19.1 55.9 54.5 53.2
of which:
Transport 12,779 13,014 15,509 -7.1 1.8 19.2 24.9 21.0 20.5
Trade and industry 2,576 2,365 2,087 -15.7 -8.2 -11.8 5.0 3.8 2.8
Energy and public utilities 2,315 2,976 3,167 -16.1 28.6 6.4 4.5 4.8 4.2
Agriculture 2,003 2,815 2,860 -13.4 40.5 1.6 3.9 4.5 3.8
Environment 1,324 1,537 2,059 -23.2 16.1 34.0 2.6 2.5 2.7
Social 22,671 -4.5 25.5 30.7 27.0 28.0 30.0
of which:
Education and training 6,737 8,118 11,955 -11.7 20.5 47.3 13.1 13.1 15.8
Health 3,983 4,397 4,457 118.0 10.4 1.4 7.8 7.1 5.9
Housing 1,015 1,582 1,771 -52.3 55.9 11.9 2.0 2.6 2.3
Security 8,970 3.0 26.5 22.6 11.2 11.8 11.9
*HQHUDO DGPLQLVWUDWLRQ 9.4 17.6 5.2 5.9 5.7 4.9
Total 62,000 -5.2 20.7 21.9 100.0 100.0 100.0
6KDUH WR *'3 3.6 4.1 4.6
1
Revised estimate
2
empowering digitalisation in the public sector. upward revision is mainly to accommodate

In addition, the allocation is also for the higher requirements for programmes such as
enhancement and maintenance of government Bantuan Prihatin Rakyat (RM16.8 billion); Wage
buildings, infrastructure and facilities. Subsidy Programme (WSP) 2.0 (RM9.7 billion);
PRIHATIN SME Grant (RM3.4 billion); COVID-19
related expenses (RM2.9 billion); social
COVID-19 Fund assistance support to vulnerable groups (RM2
billion); and small-scale projects (RM1.3 billion)
The Government’s initiatives in combating the which constitute 92.7% of the total allocation
pandemic continue to be financed under the for the Fund in 2021.
COVID-19 Fund. The implementation of several
assistance and economic stimulus packages In 2022, a sum of RM23 billion (1.4% to GDP)
has led to an increase in the COVID-19 Fund is budgeted for the COVID-19 Fund. The bulk
allocation. The fund ceiling, which was initially of allocation is provided for cash assistance,
capped at RM45 billion in 2020, has been social assistance support to vulnerable groups
increased to RM110 billion to accommodate and WSP, which will be carried over from 2021.
the additional expenditure under the new 2022 will be the final year for the COVID-19
assistance and economic stimulus packages. Fund as it is a temporary fund with a lifespan
of three years. Thus, the total requirement of
In line with the increase in its ceiling, the the fund is estimated to reach around RM100
allocation for the Fund for 2021 has been billion, below the approved ceiling of RM110
revised upwards to RM39 billion from the billion. The remaining balance will serve as a
initial budget of RM17 billion, higher by 2.6% buffer for contingencies should the need
compared to the actual spending in 2020. The arise.

࣮ࢍ࢚ࣇࢥ COVID-19 Fund Allocation
ࣣ࣠ࣔࢰࣣࢍ࣍࣍ࢥࣧ
20211 20222
Wage subsidy, job retention and workers’ hiring incentive and training assistance 9,670 3,000
programmes
Bantuan Prihatin Nasional 16,801 8,000
Small scale projects 1,311 2,000
Skill and upskilling programmes 360 1,000
3(1-$1$60(ࢉQDQFLQJ – 2,000
PRIHATIN SME Grant 3,435 –
Micro credit loans under Bank Simpanan Nasional and TEKUN Nasional 520 1,000
Allocation for COVID-19 related expenses 2,940 2,000
Food security fund 313 –
COVID-19 special allowance for frontliners – –
PENJANA National Fund 290 –
ePenjana 151 –
Electricity bill discounts 502 –
Additional RM100 for Bantuan Sara Hidup (BSH) – –
Special assistance to students of higher education institutions – –
Bumiputera Relief Financing 200 –
MY30 public transport subsidy 200 –
Social assistance for taxi drivers, school bus drivers, tour bus drivers, tour guides, 123 –
trishaw operators and e-hailing drivers
Social assistance support to vulnerable groups 1,980 3,540
Smart automation grant 90 460
Soft loan under MyCreative Venture – –
Social protection and training for gig economy workers – –
E-Dagang campaign for SME and micro enterprises 10 –
“Shop Malaysia Online” for online consumption 40 –
PEKA B40 health care support – –
Grant for child care centers and kindergartens 29 –
Digital content fund – –
Assistance to non-governmental organisations 10 –
Digitalisation of government service delivery 15 –
Digitalisation marketing and promotion fund under the Cultural Economy Development 10 –
Agency (CENDANA)
MyAssist SME One Stop Centre – –
TOTAL
1
Revised estimate
2

ࢸ࣎ࢯࣣࣔ࣍ࢍ࣮ࢸࣔ࣎ ࢚ࣔऄ
C29,' )XQG 8SGDWHV
,QWURGXFWLRQ
The COVID-19 Fund1 was established in September 2020 to finance economic stimulus packages
and recovery plans in addressing the COVID-19 crisis. The establishment of such a dedicated
trust fund is in line with international best practices, backed by a strong legal framework, robust
gatekeeping arrangements, and solid transparent and reporting standards. In 2020, a sum of
RM38 billion was disbursed to finance programmes listed in the Schedule of the Act 830. The
expenditure was recorded in the Federal Government Financial Statement, audited by the National
Audit Department of Malaysia and subsequently tabled to Parliament.
&XUUHQW 3URJUHVV
In December 2020, the Parliament approved an amendment to the Act 830 to increase the
COVID-19 Fund ceiling from RM45 billion to RM65 billion to accommodate additional economic
stimulus measures. The additional RM20 billion is allocated for Bantuan Prihatin Rakyat (BPR),
Wage Subsidy Programme (WSP), PRIHATIN SME Grant and other COVID-19 related expenses.
With the COVID-19 pandemic continuing to impact people and businesses in 2021, the Government
responded with another four additional assistance packages, namely PERMAI, PEMERKASA,
PEMERKASA+ and PEMULIH, totalling RM225 billion with fiscal injection worth RM25 billion. After
several recalibrations in the COVID-19 Fund allocation, the requirement for the Fund is estimated to
exceed RM65 billion. In this regard, the Government has tabled a second amendment to Act 830 to
the Parliament that allows for another increase in the expenditure ceiling up to RM110 billion
after taking into account commitments under 2022 Budget. Programmes that require additional
allocations are the BPR, WSP, Prihatin SME Grant, small scale projects, microcredit loans under Bank
Simpanan Nasional and TEKUN Nasional, other COVID-19 related expenses, and social assistance
support to vulnerable groups.
6SHQGLQJ 3HUIRUPDQFH
As at end-August 2021, total spending under the COVID-19 Fund was RM58.9 billion. Major
spending was on the cash transfer programme amounting to RM25 billion, constituting 42.4%
of total outlays. Under the programme, RM18.6 billion was spent in 2020 and January 2021 for
Bantuan Prihatin Nasional (BPN). The balance of RM6.4 billion was subsequently disbursed in
several phases under BPR. The BPN benefited almost 10.6 million recipients with income below
RM8,000, representing about a third of the population, while BPR benefited more than 8.5 million
recipients with income below RM5,000.
In addition, the WSP was introduced through the PRIHATIN economic stimulus package in March
2020 to help eligible employers affected by the COVID-19 pandemic to retain their workers and
continue their operations. A total of RM17.3 billion or 29.4% of the total outlays was disbursed
for WSP. This programme has benefited more than 350,000 employers and about 2.9 million
employees. As for the PRIHATIN SME Grant, the Government has spent about RM5 billion since it
was first introduced under the Additional PRIHATIN SME Economic Stimulus Package (PRIHATIN
PKS+) package in April 2020. This programme has benefited 0.9 million micro SME entrepreneurs by
easing their financial burden and cash flows.
1
The Fund was established under the Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020 [Act 830]

࣮ࢍ࢚ࣇࢥ COVID-19 Fund Ceiling and Spending Performance by Programme (RM million)
&HLOLQJ
'LVEXUVHPHQW
3URJUDPPHV )LUVW 6HFRQG $VDWHQG
$PHQGPHQW $PHQGPHQW $XJXVW
1 Wage subsidy, job retention and workers’ hiring incentive and 18,300 31,000 17,280
training assistance programmes
2 Bantuan Prihatin Nasional 25,200 41,000 25,008
3 Small scale projects 4,000 6,000 3,692
4 Skill and upskilling programmes 2,000 2,000 483
5 3(1-$1$60(ࢉQDQFLQJ 2,000 2,000 -
6 PRIHATIN SME Grant 2,400 6,000 4,986
7 Micro credit loans under Bank Simpanan Nasional and TEKUN 1,000 2,000 635
Nasional
8 Allocation for COVID-19 related expenses 5,000 9,000 2,623
9 Food security fund 1,000 1,000 486
10 COVID-19 special allowance for frontliners 600 600 -
11 PENJANA National Fund 600 600 310
12 ePenjana 520 520 650
13 Electricity bill discounts 500 500 604
14 Additional RM100 for Bantuan Sara Hidup (BSH) 300 300 -
15 Special assistance to students of higher education institutions 300 300 225
16 Bumiputera Relief Financing 200 200 200
17 MY30 public transport subsidy 200 200 198
18 Social assistance for taxi drivers, school bus drivers, tour bus 160 160 152
drivers, tour guides, trishaw operators and e-hailing drivers
19 Social assistance support to vulnerable groups 110 6,010 994
20 Smart automation grant 100 100 71
21 Soft loan under MyCreative Venture 100 100 30
22 Social protection and training for gig economy workers 75 75 25
23 E-Dagang campaign for SME and micro enterprises 70 70 30
24 “Shop Malaysia Online” for online consumption 70 70 56
25 PEKA B40 health care support 50 50 50
26 Grant for child care centers and kindergartens 50 50 33
27 Digital content fund 35 35 -
28 Assistance to non-governmental organisations 25 25 11
29 Digitalisation of government service delivery 20 20 14
30 Digitalisation marketing and promotion fund under the 10 10 2

Cultural Economy Development Agency (CENDANA)
31 MyAssist SME One Stop Centre 5 5 5
TOTAL 110,000


Similarly, the spending for small-scale projects stood at RM3.7 billion, or 6.3% of total outlays. The
projects identified under this programme are expected to benefit the local community as well as
generate spillover effect to the economy. The projects include, among others, repair work of basic
infrastructure, public facilities and roads, as well as upgrades of dilapidated schools, public houses
and teaching hospitals involved with COVID-19.
For the COVID-19 related expenses programme, a sum of RM2.6 billion was spent for COVID-19
related healthcare services, as well as the purchase of medical apparatus and equipment to increase
the capacity of health facilities and ICU wards. Likewise, the spending for social assistance to support
and improve the economy of the vulnerable groups stood at RM1 billion with outlays on initiatives
such as one-off disbursement for single mothers and disabled persons, Jaringan Prihatin Programme,
Food Staples Assistance and Mobile Clinic Programme. The remaining allocation was spent on other
programmes, such as ePenjana, Food Security Fund and electricity bill discounts.
&RQFOXVLRQ
The pandemic crisis has necessitated the Government to expand its fiscal support to the economy,
mainly the health sector. This was made possible by enactment of the COVID-19 Act, which
enables additional borrowing to finance stimulus packages via the COVID-19 Fund. At the same
time, transparency and good governance will be upheld through annual tabling and reporting of
receipts and expenditures of the Fund to Parliament in line with international best practices. With
effective implementation of the stimulus measures and management of the Fund, the Government
is confident of achieving its objective of steering the country out of the crisis while maintaining
medium-term fiscal sustainability.
5HIHUHQFHV
Malaysia (2020). Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19))
Act 2020 [Act 830].
Malaysia (2020). Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19))
Act (Amendment) 2020.
Ministry of Finance, Malaysia (2021). Series of Laporan LAKSANA. Retrieved from https://www.mof.gov.
my
Ministry of Finance, Malaysia (2021). Infografik PERMAI. Retrieved from http://belanjawan2021.

treasury.gov.my
Ministry of Finance, Malaysia (2021). Infografik PEMERKASA 2021. Retrieved from http://
belanjawan2021.treasury.gov.my
Ministry of Finance, Malaysia (2021). Infografik PEMERKASA+ 2021. Retrieved from http://
belanjawan2021.treasury.gov.my

Ministry of Finance, Malaysia (2021). Infografik PEMULIH. Retrieved from http://belanjawan2021.

treasury.gov.my
Prime Minister’s Office of Malaysia (2021). Pengumuman Khas Pakej Bantuan Perlindungan Ekonomi
dan Rakyat Malaysia (PERMAI) Speech Text. Retrieved from https://www.pmo.gov.my
Prime Minister’s Office of Malaysia (2021). Program Strategik Memperkasa Rakyat dan Ekonomi
(PEMERKASA) Speech Text. Retrieved from https://www.pmo.gov.my
Prime Minister’s Office of Malaysia (2021). Program Strategik Memperkasa Rakyat dan Ekonomi
Tambahan (PEMERKASA+) Speech Text. Retrieved from https://www.pmo.gov.my
Prime Minister’s Office of Malaysia (2021). Pakej Perlindungan Rakyat dan Pemulihan Ekonomi
(PEMULIH) Speech Text. Retrieved from https://www.pmo.gov.my
Outlook for 2022 economic (20.3%), security (10.3%) and general

administration (4.8%) sectors. The remaining
balance amounting to RM81.3 billion (24.5%)
The recovery momentum is expected to
will be allocated for charged expenditure and
gain traction in 2022 in line with the steady
transfer payments.
progress of the vaccination programme,
bolstered by the implementation of the NRP.
The OE allocation for 2022 is budgeted at
Furthermore, the recently announced 12MP
RM233.5 billion or 14.3% to GDP. The amount
will be the catalyst to revitalise the economy,
is 6.3% higher compared with the 2021 revised
promote investments, accelerate digitalisation
allocation of RM219.6 billion. Emoluments, debt
and strengthen the civil service. Given the
service charges, and retirement charges remain
need to ensure a durable recovery, the
the top three recipients constituting 67.5% of
2022 Budget is formulated with three main
the total OE or 9.6% to GDP.
objectives: to sustain and spur economic
activities, rebuild economic resilience, and
Emoluments for civil servants account for the
catalyse the reform agenda. Hence, the largest share of OE in 2022. This component,
Government will continue its expansionary representing about a third of total OE, is
fiscal stance to steer the country to its estimated to increase to RM86.5 billion. The
potential growth trajectory. increase is partly to cater for the annual salary
increment. Likewise, retirement charges are
A total sum of RM332.1 billion (20.3% to estimated to increase to RM28.1 billion (12% of
GDP) will be allocated in the 2022 Budget. Of total OE) due to the annual pension increment,
this amount, RM233.5 billion (70.3%) will be coupled with a higher number of pensioners
channelled to OE, RM75.6 billion (22.8%) for and beneficiaries estimated at about 628,300. A
DE and the balance of RM23 billion for the total of 73.7% of retirement charges comprise
COVID-19 Fund. In terms of sectoral allocation, monthly pension payments for pensioners and
RM133.2 billion or 40.1% of the total 2022 beneficiaries, while the remaining are mainly
Budget will be allocated for programmes and for gratuity payments and cash awards in lieu
projects under the social sector, followed by of un-utilised accumulated leave.

A total of RM43.1 billion will be allocated for Thus, an allocation of RM75.6 billion will be
debt service charges in 2022. Of this amount, allocated for DE (2021: RM62 billion). Of the
98.2% is allocated for coupons on domestic total, RM66.9 billion is allocated for 5,575
debts, while the balance is for offshore ongoing projects, while RM8.7 billion is for
loans. The debt service charges ratio to OE is 1,180 new projects. The economic sector
estimated higher at 18.5%, in line with the use remains the largest recipient at 53.2% of DE,
of debt instrument in financing expansionary followed by social (30%), security (11.9%) and
fiscal stance. general administration (4.9%) sectors.
Allocation for supplies and services, which A sum of RM40.2 billion will be provided
represents 13% of OE, increases by 30.5% to for the economic sector to increase
RM30.4 billion. The increase is attributed to economic capacity and enhance the nation’s
higher outlays for medical supplies as well competitiveness. The focus continues to be
as an allocation for professional services. on projects related to transport, trade and
Ministries that will be receiving the highest industry as well as energy and public utilities
allocation among others are the Ministry of subsectors. The transport subsector will be
Health (33.1%), the Ministry of Home Affairs allocated RM15.5 billion to construct, refurbish,
(12.5%) and the Ministry of Education (11.2%). and maintain key infrastructures, such as
A substantial amount of outlays will be for highways, roads, railways, bridges, ports,
and airports. These include existing projects,
the procurement of medical supplies as
namely Electrified Double Track Gemas-
well as repairs and maintenance of school
Johor Bahru, Rapid Transit System Link, Pan
facilities. Subsidies and social assistance will
Borneo Highway, as well as the expansion of
be allocated a higher allocation of RM17.4
Kuantan Port, Pahang and Sandakan Airport,
billion (2021: RM16.7 billion), due to higher
Sabah. Among the new projects that will be
provision for social assistance. The Government
undertaken are upgrading Jalan Marabahai
will continuously enhance the current policy
Spur at Tuaran, Sabah, replacing bridges at
and mechanisms to gradually move towards
Sik and Baling, Kedah, and a study on an
targeted assistance in ensuring more equitable
alternative route for Jalan Seremban-Kuala
distribution.
Pilah, Negeri Sembilan.
A sum of RM14.1 billion will be allocated for

Another recipient under the economic sector
grants to statutory bodies, mainly for their
is the trade and industry subsector, with an
operational expenses such as emoluments
allocation of RM2.1 billion. Among programmes
as well as supplies and services. Grants for
under this subsector are for strengthening
public higher education institutions consisting entrepreneurial capabilities, including MSMEs
of public universities and teaching hospitals in line with the National Entrepreneurship
constitute 64.5% of the total allocation. Policy 2030. In addition, the focus will also
Further, a total of RM7.9 billion is allocated for be given to support the growth of industries
grants and transfers to state governments. Of by providing grants or loans for activities
this amount, RM5.9 billion are constitutional including research and development as well
transfers under the Federal Constitution. as product commercialisation. These include
the PUNB Entrepreneur Financing Programme,
As Malaysia enters the second year of Fund for Local Strategic Investment, Fund
the 12MP, '( for 2022 will continue to be for High Impact Project, Research and
distributed to projects and programmes with a Development Loans for Aerospace and
high multiplier impact to reinvigorate economic Electric and Electronic field, Special Business
growth, create a conducive investment climate Financing Scheme for Women (DanaNITA), and
and safeguard the wellbeing of the rakyat. Industry4WRD.

A sum of RM3.2 billion will be allocated housing subsector, of which the bulk of the
to the energy and public utility subsector allocation will be channeled to the construction
to provide greater access to the rakyat, of PPR houses and upgrading of civil servant
particularly the supply of electricity and water, quarters. Other projects under the subsector
telecommunication access and sewerage include Rumah Mesra Rakyat programme
services. Similarly, the agriculture subsector and development of zero waste community
will be provided with an allocation of RM2.9 among selected PPR, such as at Sri Kemuning
billion, mainly for settlers and smallholders in Temerloh, Pahang and Seri Sena in Kangar,
development programmes, oil palm and Perlis.
rubber replanting, paddy irrigation system as
well as poultry and cattle breedings, which The security sector will receive RM9 billion to
are expected to boost the agro-industry. In be channelled to defence (60.4%) and internal
addition, the environment subsector will be security (39.6%) subsectors. This involves the
provided with RM2.1 billion, primarily for enhancement of network systems and services
river restoration and flood mitigation projects as well as the upgrade of military assets and
such as the construction of integrated river security equipment. Furthermore, the allocation
basins, maintenance of flood reservoir pond, will be provided for infrastructure projects,
upgrading of dam and stabilisation of river such as quarters for security personnel, health
banks. facilities and upgrading of prisons.
The social sector, which is the second-largest A sum of RM3.8 billion will be allocated for the
DE recipient, will be allocated RM22.7 billion. general administration sector to strengthen
The allocation increases by 30.7% as compared the public sector under the 12MP. Some of the
to the RM17.3 billion provided in 2021. key projects are digitalisation enhancement in
Education and training subsector continues to the public sector, such as 1GOVNET, MYGOVUC,
receive the largest allocation under this sector, Court Recording Transcription System or
amounting to RM12 billion, particularly for e-Kehakiman and the expansion of public
TVET, research grants, and the construction sector data centre services. In addition, the
and expansion of educational institutions. The allocation is also provided for maintenance
health subsector will be allocated RM4.5 billion of government buildings, assets and facilities,
to ensure the availability and accessibility such as quarters, courts and training
of a comprehensive healthcare system. In institutions.
addition, the provision will also be utilised
for procuring medical service vehicles and
equipment. Among the new projects are the
construction of Kapar Hospital in Selangor and
Federal Recoverable
the upgrading of hemodialysis facilities at the Loans
Ministry of Health Malaysia hospitals in Kedah,
Penang and Perak, as well as the autopsy The total outstanding Federal Recoverable
room of Sultan Ismail Hospital Forensic Loans1 as of 31 December 2020 was at
Department, Johor. RM43.1 billion or 2.6% to GDP. Of the total
loans disbursed through the Development
The Government remain committed to Fund, more than half are loans to companies,
providing adequate and quality affordable amounting to RM24.9 billion, followed by
houses to the low- and middle-income earners. state governments at RM13 billion (30.1%)
Thus, RM1.8 billion will be allocated under the and statutory bodies RM4.9 billion (11.4%).
1
The Federal Recoverable Loan is part of the Federal Government Financial Assets, which consist of loans facilities due from state governments, local governments,
statutory bodies, companies, cooperatives and various organisations.

In addition, the loans were also for local other organisations (RM10.9 million). Loans
governments amounting to RM143 million to companies will be utilised mainly to fund
(0.3%), other organisations at RM200 million programmes and projects related to water and
(0.5%) and cooperatives at RM6.8 million electricity supply, land rehabilitation for rubber
(0.02%). estates, oil palm replanting and highways
constructions. Likewise, loans for the state
In 2021, the loan disbursement via DE is governments, local governments and statutory
budgeted at RM1.2 billion or 1.9% of the bodies will be used mainly to upgrade
total DE. Of the total, state governments and maintain water supply and sewerage
and companies remain the largest recipients, infrastructure, construct dams, and finance
constituting 91.2% of the total loans disbursed. crop development projects.
This is followed by statutory bodies (7.8%)
and others (1%). The loans are disbursed Loan repayments in 2022 are estimated
to facilitate long-term investment projects, at RM0.6 billion. About half of the total
such as road infrastructure, water supply and repayments are expected to be received from
sewerage. state governments with major contributions
from Sabah, Sarawak and Selangor. Loan
In 2021, the Government is estimated to repayments from companies are expected
receive loan repayments amounting to RM0.8 at RM0.2 billion, while the balance is from
billion. About 41% of these repayments statutory bodies (RM58.6 million), local
are expected to be received from state governments (RM4.2 million) and other
governments. Sabah and Sarawak continue organisations (RM11.7 million).
to be the major contributors. Similarly,
repayments from companies are also projected
at about RM0.4 billion. Bank Pertanian Conclusion
Malaysia Berhad (Agrobank), Pengurusan
Aset Air Berhad and Yayasan Tekun Nasional The Government will continue to play its role
are the top three contributors, with total in mitigating the impact of the COVID-19
repayments amounting to RM285.5 million. pandemic on the rakyat, businesses and
In addition, total repayments from statutory economy. Its immediate priority is to provide
bodies and local governments are estimated at adequate support for the implementation of
RM59.2 million and RM5.1 million, respectively. the NRP, accelerate economic growth and lead
Meanwhile, repayments expected from other the country out of the economic and health
organisations such as clubs and associations crises. Any withdrawal of fiscal injection will
are estimated at RM35.8 million. depend on the pace of recovery to ensure
the economy returns to its growth trajectory.
In 2022, the Federal Government is budgeted Nevertheless, initiatives to enhance effective
to provide loans totalling about RM2 billion and efficient spending will be pursued. At the
via DE to state governments, companies, same time, as illustrated with the inaugural
statutory bodies and other organisations. publication of the Pre-Budget Statement and
State governments continue to be the Public Consultation Papers, the Government
highest recipient of loans amounting to remain committed to upholding transparency
RM1 billion, followed by companies (RM0.8 and accountability in its public finance
billion), statutory bodies (RM123 million) and management.

ࢯࢸࢰࣣࣳࢥ 3.1. Total Expenditure by Sector ࢯࢸࢰࣣࣳࢥ 3.2. Total Expenditure by Ministry
and Agency
10.3% 20222: Ministry of Transport

RM332.1
billion Ministry of Works OE20222
24.5% DE20222
9.8% Ministry of Rural Development OE20211
DE20211
24.0% Prime Minister's Department
20211: Ministry of Higher Education
RM320.6
4.8% 5.2% billion 40.1% 40.1% Ministry of Defence
20.9% Ministry of Home Affairs

Ministry of Finance
SOCIAL
20.3% Ministry of Health
ECONOMIC
SECURITY Ministry of Education
GENERAL ADMIN
0 10 20 30 40 50 60
OTHERS RM billion
ࢯࢸࢰࣣࣳࢥ 3.3. Operating Expenditure by Component ࢯࢸࢰࣣࣳࢥ 3.4. Operating Expenditure by Sector
% to OE
100
90 20222:
10.8%
80 RM233.5
billion
70
11.0%
60 34.7%
50 35.1% 20211:
40 RM219.6 39.9%
30 billion
20 5.8% 41.1%
10 8.2%
0 5.3%
2013 2014 2015 2016 2017 2018 2019 2020 20211 20222
8.1%
SOCIAL
RETIREMENT CHARGES OTHERS
DEBT SERVICE CHARGES GRANTS AND TRANSFERS TO STATE GOVERNMENTS ECONOMIC
SUPPLIES AND SERVICES GRANTS TO STATUTORY BODIES SECURITY
EMOLUMENTS SUBSIDIES AND SOCIAL ASSISTANCE GENERAL ADMIN
OTHERS
ࢯࢸࢰࣣࣳࢥ 3.5. Development Expenditure by Sector ࢯࢸࢰࣣࣳࢥ 3.6. Federal Recoverable Loans under
Development Fund by Debtor, End-2020
RM billion 24.85
24
4.9% 2022 :
2
11.9%
RM75.6 20
billion
5.7%
11.8%
16
12.98
20211:
RM62.0 28.0% 30.0% 12
billion
54.5% 8
53.2%
4.89
4
SOCIAL 0.14 0.01 0.20

ECONOMIC 0
STATE GOVERNMENTS
COMPANIES
OTHER ORGANISATIONS
LOCAL GOVERNMENTS
STATUTORY BODIES
COOPERATIVES
SECURITY
GENERAL ADMIN
1
Revised estimate
2

Debt
Management
163 ࢯ ࢸ ࣎ ࢍ ࢛࣎ ࢸ ࣎ࢰ
Feature Article - Government of Malaysia’s 2021
Global Sukuk
17 2 ࢯࢥ ࢡࢥ ࣣ ࢍ ࣇࢰࣔࣾ ࢥ ࣣ ࣎࣍ࢥ ࣮࣎ࢡࢥ ࢚࣮

Feature Article - Malaysia’s Debt Sustainability
Analysis 2021
181 ࢥ ऄ ࣮ࢥ ࣣ ࣎ ࢍ ࣇࢡࢥ ࢚࣮
182 ࢚࣠ࣳࣇ ࢸ࢛ࣧ ࢥ࢛ ࣮ࣣࣔࢡࢥ ࢚࣮
182 ࣮ࣔࣳࣇࣔࣔࣅࢯࣣࣔ
183 ࢛࢛ࣔ࣎ࣇࣳࣧ ࢸࣔ࣎

ࣧࢥ࢛࣮ࢸࣔ࣎ ࢡࢥ࢚࣮ ࣍ࢍ࣎ࢍࢰࢥ࣍ࢥ࣮࣎
Debt Management
Programme (PICK), as an integral part of the

Overview National Recovery Plan (NRP), is expected to
accelerate the resumption of economic and
Global government debt reached an
social activities and catalyse the recovery.
unprecedented level, nearing 100% to world
gross domestic product (GDP) in 2020 and
is projected to remain elevated in 2021 and Financing
2022. Meantime, global economic recovery is
progressing, albeit slower than anticipated, In 2021, the Government announced four
due to a high degree of uncertainty resulting additional assistance and stimulus packages,
from the resurgence of COVID-19 cases with namely Perlindungan Ekonomi dan Rakyat
the emergence of new variants. Governments Malaysia (PERMAI), Strategic Programme
continue to provide fiscal support to accelerate to Empower the People and Economy
economic recovery with fiscal injections (PEMERKASA), Strategic Programme to
estimated at USD16.9 trillion.1 Therefore, the Empower the People and Economy Plus
supply of government securities in the market (PEMERKASA+) and National People’s Well-Being
is projected to remain high as governments and Economic Recovery Package (PEMULIH),
resort to borrowing to fund stimulus measures. totalling RM225 billion with a fiscal implication
Nevertheless, monetary policy easing to of RM25 billion. The packages aim to provide
address financial market volatility, global assistance to the rakyat and businesses to
economic conditions and inflationary pressures cushion the impact of the COVID-19 pandemic,
led to a low-interest-rate environment, which was exacerbated by the emergence of
benefiting governments with lower financing new and more infectious variants, resulting
costs. in the prolonged Movement Control Orders
(MCO). Thus, the Government reviewed its
In line with global trends, the Government annual borrowing requirements for the
unveiled another four assistance and stimulus year, taking into account the increase in
packages. In addition, the resumption of the Federal Government spending and reduced
strict containment measures beginning May revenue collection. Consequently, the initial
2021 amid rising COVID-19 cases has led to fiscal deficit target of 5.4% to GDP has been
the downward revision of growth projections revised upward to 6.5% to accommodate the
which is expected to impact the fiscal deficit. additional financing requirement following the
Consequently, to provide fiscal flexibility announcement of the packages.
and enable a smooth implementation of
the additional packages, the Dewan Rakyat The Federal Government’s WRWDO JURVV
has approved the increase of statutory debt ERUURZLQJV are expected to record RM210.8
ceiling from 60% to 65% to GDP under the billion or 13.9% to GDP in 2021, with RM110.4
Temporary Measures for Government Financing billion to be utilised for principal repayments
(Coronavirus Disease 2019 (COVID-19)) Act 2020 while RM98.8 billion for deficit financing.
[Act 830]. Nonetheless, the steady progress Principal repayments consist of maturing
of the National COVID-19 Immunisation Malaysian Government Securities (MGS)
1
IMF October 2021 Fiscal Monitor.

at RM38.7 billion, Malaysian Government The issuance profile was adjusted with the
Investment Issues (MGII) at RM29 billion, increase in issuances of short- and medium-
treasury bills at RM33 billion, Government term instruments. The composition of short-
term papers (less than a year) and medium-
Housing Sukuk (SPK) at RM6 billion and
term papers (3 to 7 years) is anticipated to
offshore borrowings at RM3.7 billion.
be higher at 58.2% of total gross domestic
borrowings, while issuances of long-term
*URVV GRPHVWLF ERUURZLQJV are estimated papers (exceeding 10 years) are expected to be
to reach RM205.5 billion or 97.5% of total lower at 41.8%. In general, higher issuances
gross borrowings. Given sufficient liquidity of short-term papers lower the overall funding
in the domestic market, the Government has costs and average time to maturity while
been able to fund its additional borrowing increase refinancing risk.
requirements across various tenures. The
issuance of MGS is expected to remain The Government financing operations are
substantial at RM83 billion or 39.4% of total mostly conducted through open market
gross borrowings, while MGII at RM77 billion auctions, constituting 84.7% of total domestic
or 36.5%. In addition, treasury bills issuance issuances in view of the market’s ability to
is estimated to be higher at RM45.5 billion or absorb the additional supply. In 2021, the
21.6% of total gross borrowings to address Government increased the re-opening of the
short-term cash flow needs. benchmark papers, accounting for 94.6% of 37
issuances compared to 88% of 34 issuances
in 2020, to ensure a well-distributed supply
࣮ࢍ࢚ࣇࢥ Federal Government Financing throughout the year. A higher re-opening will
2020 – 2021 lead to larger outstanding issuance sizes and
facilitate investors’ index-tracking activities
ࣧࢵࢍࣣࢥ in accessing the domestic debt market, thus
મય further improve the secondary market trading
2020 20212 2020 20212
liquidity. Accordingly, the Government has
taken a proactive approach in effectively
*URVV ERUURZLQJV 181,067 210,777 100.0 100.0 communicating to the market with regard
'RPHVWLF 181,067 205,500 100.0 97.5
to additional funding needs and revisions to
financing strategies. The Federal Government
MGS 73,000 83,000 40.3 39.4 remains committed to its debt management
MGII 76,466 77,000 42.2 36.5 objective of minimising funding costs while
Treasury bills 31,601 45,500 17.5 21.6
maintaining a well-spread debt maturity profile.
2IIVKRUH - 5,277 - 2.5 The Government received a total bid of

Market loans - 5,277 - 2.5 RM186 billion for market issuances of RM87
Project loans - - - -
billion during the first eight months of 2021,
reflecting a stable demand for government
5HSD\PHQWV 110,376 100.0 100.0 securities. The bid-to-cover (BTC) ratio at 2.14
Domestic 94,146 106,700 99.6 96.7 times indicates the Government’s ability to
Offshore 331 3,676 0.4 3.3
manage surging borrowing needs without
undermining the functioning of the domestic
1HW ERUURZLQJV 86,590 - - bond market despite the challenging economic
Domestic 86,921 98,800 - - environment. However, the BTC ratio was lower
Offshore -331 1,601 - -
than the corresponding period in 2020 at 2.27
times. The demand for short- and medium-
&KDQJH LQ DVVHWV1 - - term papers was slightly lower at the BTC ratio
7RWDO GHILFLW of 1.89 times compared to long-term papers
98,777 - -
ILQDQFLQJ at 2.42 times. Investor preferences and market
trends mainly influenced the BTC ratio, with
(+) indicates a drawdown of assets; (-) indicates accumulation of
investors’ demand for shorter tenure securities
1
assets
2
Estimate hampered by the likelihood of the US interest
Source: Ministry of Finance, Malaysia rate normalisation in June 2021. On the other

hand, institutional investors, namely insurance followed the expectation of the US policy
companies and pension funds favour long-term rate normalisation as well as increased
issuances to match the maturity profile of their domestic risk factors following escalating daily
liabilities. COVID-19 cases, the extension of MCO and
political uncertainties. Despite the challenging
Several initiatives were implemented in environment, total net foreign inflows in
ensuring an orderly domestic financial market. the first eight months of 2021 reached
As at end-September 2021, the Monetary Policy RM28.4 billion, with foreign demand for MGS
Committee (MPC) of Bank Negara Malaysia registering a net inflow of RM14.4 billion.
(BNM) maintained the Overnight Policy Rate The positive fund flows also demonstrated
(OPR) at 1.75%. BNM also announced the investors’ confidence in the Government’s
extension of temporary flexibility for banking ongoing effort to expedite the vaccination rate
institutions to use MGS and MGII to meet through PICK, an integral part of the NRP.
the Statutory Reserve Requirement (SRR) until
the end-December 2022 to ensure sufficient Malaysia remained the leader in the global
liquidity in supporting financial intermediation sukuk market with a commendable market
activity. The SRR ratio remains unchanged share of 40.9% of the global sukuk outstanding
at 2.00% and this measure has released as at end-June 2021.2 The issuance of MGII
approximately RM46 billion worth of liquidity is expected to account for 36.5% of total
into the banking system. In addition, ongoing gross borrowings, while MITB at 14.2%. Since
initiatives by BNM to enhance the domestic the beginning of 2021, spreads between the
Government bond market has resulted in 3- and 5-year Government’s bond and sukuk
Malaysia being removed from the FTSE yields have been narrowing, with yields on
Russell Watch List and retained on the World MGII declining at a faster pace compared to
Government Bond Index. its MGS equivalent. As at end-August 2021,
the 5-year yields on MGII were 4 basis points
Despite the increase in the supply of lower than the corresponding MGS yields of
government securities, the cost of borrowing similar maturity. In addition, the majority
remained low, buoyed by the low-interest-rate of the bidding interest was skewed towards
environment due to policy easing. However, MGII, which recorded a BTC ratio of 2.34
the outcome of the 2020 US Elections has times compared to MGS at 1.96 times. The
influenced the dynamics of US Treasury oversubscribed issuances reflected strong
(UST) yields, where the yields rose in tandem demand for Shariah-compliant government
with the improvement of the US economy, papers, supported by the enabling environment
following the easing of lockdowns and in the domestic market.
faster-than-expected vaccination rollout. The
spillover effect from the rise in UST yields has *URVV RIIVKRUH ERUURZLQJV as at end-August
influenced the performance of MGS yields, 2021 amounted to RM5.3 billion due to
with the benchmark coupon rates of 3-, 5- issuances of the dual-tranche sukuk of USD1.3
and 10-year MGS increased to 2.34%, 2.68% billion on 28 April 2021. The sukuk issuance
and 3.20%, respectively as at end-August with a maturity period of 10-year and 30-year
2021. Nevertheless, the Government’s strategy was much anticipated by investors as Malaysia
to re-open papers with lower coupon rates has a successful track record in issuing
has resulted in a noticeable decline in the innovative Shariah-compliant products. The 10-
Government’s weighted average borrowing year tranche being the world’s first sovereign
costs from 4.18% in 2017 to 3.70% as at end- USD Sustainability Sukuk was priced at 2.070%,
August 2021. while the 30-year tranche was 3.075%. The
sukuk structure is unique as its underlying
The domestic bond market recorded 14 assets are 100% non-physical, comprising travel
months of continuous net foreign inflows vouchers of clean energy public transport,
since April 2020. However, the trend reversed which is fully aligned with the concept of
beginning July 2021 due to lower foreign sustainability. The issuance further reinforced
holdings of short-dated securities, particularly Malaysia’s position as a leading Islamic
the Malaysian Treasury Bills (MTB). This financial hub in the global market.
2
RAM Sukuk Snapshot 2Q2021.

*RYHUQPHQW RI 0DOD\VLDȆV *OREDO 6XNXN
%DFNJURXQG
The prolonged COVID-19 crisis and the ensuing fiscal response by countries worldwide have
resulted in a huge increase in the sovereign borrowing requirements. Since the beginning of the
pandemic in January 2020, a total of USD16.9 trillion in fiscal injections for economic recovery plans
has been collectively announced by countries. The heightened focus on COVID-19 response efforts
has motivated policymakers and investors to seek different financing strategies as reflected in the
recent momentum in environmental, social and governance (ESG) initiative. Furthermore, the 2030
Agenda for Sustainable Development (2030 Agenda), which was established on 25 September 2015,
sets a new global framework for sustainable development financing by aligning the policies and
flow of funds with economic, social and environmental priorities. Accordingly, the global Green,
Social, Sustainability and Sustainability-linked (GSSS) bonds reached USD574 billion in the first half
of 2021, more than entire issuances in 2020 (Figure 1).
ࢯࢸࢰࣣࣳࢥ 1. GSSS Global Bond Issuances Malaysia’s venture into sustainable finance
commenced in 2014 with the formulation of
USD billion the Sustainable and Responsible Investing
700
(SRI) Sukuk Framework by the Securities
600 573 574 Commission Malaysia. The Framework has
paved the way for the alignment of sustainable
500
finance and investment to the values and
400 principles of Islamic finance. In addition, the
335
Sustainable Development Goals (SDG) have
300
207
been localised and integrated within the
200 155 national development planning framework
100
102 since the Government’s formal adoption of the
49
2030 Agenda, as reflected in the alignment
0 to key strategic thrusts of the Eleventh
2015 2016 2017 2018 2019 2020 20211
Malaysia Plan (11MP), 2016-2020. To boost the
EUROPE, THE MIDDLE EAST AND AFRICA (EMEA) implementation of its sustainable finance
AMERICA plan, the Government has also announced
ASIA PACIFIC
measures to support the development of
sustainable finance ecosystem in the 2021
1
End-June 2021
Source: Bloomberg Budget.
0DOD\VLDȆV *OREDO 6XNXN ,VVXDQFH
After a series of successful issuances of USD-denominated sukuk since 2002, the Government once
again tapped into the global market with the issuance of a dual-tranche USD1.3 billion sukuk on
28 April 2021. The first tranche of a 10-year, USD800 million issuance records a new milestone as
the world’s first sovereign USD-denominated sustainability sukuk, signifying Government’s latest
commitment towards advancing sustainable development. At the same time, the Government also
issued a 30-year tranche of USD500 million sukuk. The transaction also set a new benchmark as
the lowest priced global USD sukuk by the Government of Malaysia.

The Sukuk Structure and Transaction Flow
The sukuk was structured under the Shariah principle of Wakalah. The underlying assets are unique
and in line with the spirit of the sustainability tranche, being 100% non-physical assets, namely
vouchers representing travel entitlement on Malaysia’s Light Rail Transit (LRT), Mass Rapid Transit
(MRT) and KL Monorail networks. These modes of clean transportation are fully aligned with the
SDG 9 Goal of Industry, Innovation and Infrastructure as well as SDG 11 Goal of Sustainable Cities
and Communities. Thus, the transaction also set a new record as the first sovereign issuance with
such assets in a sukuk structure, demonstrating Malaysia’s global leadership in Islamic finance and
reinforcing the country’s position as the world’s largest sukuk market. The sukuk structure and
transaction flows are shown in Figure 2.
ࢯࢸࢰࣣࣳࢥ2. Sukuk Structure and Transaction Flow
Government of Malaysia Government of Malaysia Government of

as Seller of Voucher as Wakeel Malaysia as Obligor
3a. Sukuk 3b. Purchase

Proceeds Vouchers*
Voucher Purchase 2. Appoint GOM Wakalah 4. Distribution

Agreement as Wakeel Agreement proceeds
5a. Pool of Wakalah

Sukuk Assets
Purchase
Malaysia Wakala Sukuk Berhad Undertaking
(Issuer/Trustee)
5b. Maturity: Sukuk
Exercise Price
4. Periodic
Declaration Distribution
1. Issue Sukuk
of Trust
5c. Dissolution Goods Flow
Amount Contract Flow
Sukuk Certificate holders Cash Flow
Step Description
1 Malaysia Wakala Sukuk Berhad (MWSB), a special purpose vehicle (SPV), issued Trust Certificates to sukuk
certificate holders in consideration for the proceeds.
2 The Government was appointed as an agent of the certificate-holders (Wakeel) to act as the Issuer’s agent in
providing certain services in relation to the Wakalah sukuk assets, subject to terms and conditions of the
Wakalah Agreement.
3 a) On the issuance date, SPV as the Trustee, would utilise 100% of the proceeds to buy vouchers of travel
entitlement on public transport (Vouchers1)
b) In return, the Government will supply the Vouchers to MWSB as the Trustee, which will then declare a trust
over the Vouchers for and on behalf of the certificate holders.
4 The returns from the sale of vouchers will be paid by the Trustee to the certificate-holders on each
periodic distribution date.
5 a) Upon maturity or redemption date, the Government as an Obligor will purchase the Wakalah sukuk
assets from the Trustee at the exercise price on the scheduled maturity date of the Trust Certificates.
b) The funds received from the exercise price will be used to redeem the sukuk from the certificate-
and c) holders
1
The Government has irrevocable rights to substitutes the Vouchers with new vouchers and/or replacement assets, provided that such assets are
Shariah-compliant tangible assets as approved by Shariah Adviser at the time of substitution

The sukuk transaction involved legal documents based on Malaysian and English Law. The main
legal documents binding the transaction are as shown in Figure 3.
ࢯࢸࢰࣣࣳࢥ3. Main Transaction Agreement
Declaration of Trust Voucher Purchase Agreement

Sets the Delegate’s terms of appointment. The Issuer Specifies transaction of Vouchers (representing an
declares themselve as Trustee of the Trust Assets, entitlement to a specified number of travel units)
including the Wakalah assets purchased with the between the Trustee and the Issuer.
sukuk proceeds for and on behalf of the
certificate-holders.
Wakalah Agreement Purchase Undertaking

Defines the appoinment and duties of GOM as Wakeel Prescribes GOM’s purchase of trust assets from the
to act as the Issuer’s agent in respect of the underlying Trustee as stipulated in the transaction agreement.
assets for the sukuk.
Substitution Undertaking
Defines the undertaking pledged by the Trustee to
transfer the trust assets to GOM for the purpose of
new assets substitution that comply the eligibility
requirements.
Government of Malaysia’s SDG Sukuk Framework
Since national development plan has always been geared towards economic, social and
environmental agenda, the formulation of the Government of Malaysia SDG Sukuk Framework1 is
aligned with its five-year national development plans, which utilises the government development
budget. The SDGs alignment process is realised through an expenditure mapping exercise involving
the coordination of the action plans, initiatives and outcomes of national development plans to the
SDGs’ goals, targets and indicators.
The Sustainability Sukuk is issued based on the newly established Framework. The Framework
was formulated based on four key components, namely use of proceeds; project evaluations and
selections; management of proceeds; and reporting (Figure 4). It also outlines the criteria for
Eligible Social and Green Expenditure to be made with the Sukuk proceeds (Figure 5).
1
More information on the Government of Malaysia SDG Sukuk Framework and the Second Party Opinion can be found at www.mof.gov.my/en/
economy/sustainability

ࢯࢸࢰࣣࣳࢥ4. Key Components of the Framework
Use of Proceeds Project Evaluations Management of Reporting

and Selections Proceeds
Proceeds from this The evaluations and The proceeds of each The Government will
issuance are used by the selection process GOM SDG Sukuk issued prepare the SDG Sukuk
Government to finance ensures that proceeds will be managed in Report annually for each
Shariah compliant from any GOM SDG accordance with Act SDG Sukuk issued, from
general purposes, Sukuk are linked to 406 and can be used the beginning of the
which has eligible social Eligible Expenditures, both for the financing transaction until
and green focus as as set forth in the and refinancing of maturity of the SDG
defined in the Framework. Eligible Expenditures, sukuk.
Framework and also for where the utilisation will
the purpose as be tracked as stipulated
described under the in the Framework.
External Loans Act 1963
[Act 403] and
Development Funds Act
1966 [Act 406].
Source: Ministry of Finance, Malaysia.
ࢯࢸࢰࣣࣳࢥ 5. Eligible Social and Green Expenditures

GOOD HEALTH QUALITY
SUSTAINABLE CITIES LIFE ON LAND
AND WELL-BEING AND COMMUNITIES
Healthcare Education Clean Sustainable
EDUCATION
3 and Training 4 Transportation 11 Management 15

of Natural Resources
Construction or upgrading Construction or upgrading Developing clean public Conservation of habitat and
of health facilities schools, universities and transportation system biodiversity through
Providing mobile healthcare higher learning institutions Procurement of electric or sustainable management
or flying doctor services Providing professional hydrogen-powered vehicles Implementation of
Providing pandemic-related development and training for public transportation sustainable agriculture
support programmes and Providing upskilling and R&D and manufacturing of techniques and production
projects reskilling training electric vehicles and
Awarding grants and associated infrastructure
scholarships
ELIGIBLE SOCIAL EXPENDITURES ELIGIBLE GREEN EXPENDITURES

Basic Support for Renewable Energy Green Buildings
Infrastructure SMEs Development, Construction of government
Construction of affordable Providing loans or other manufacturing, installation buildings or facilities that
housing financial support for SMEs and operation of solar and met the criteria of a
Providing access to water Providing funding and/or mini hydro projects recognised green building
and electricity supply training to support export Building solar energy certification
Widening broadband competitiveness projects
infrastructure
Construction or upgrading
basic social amenities
NO POVERTY CLEAN WATER SUSTAINABLE CITIES DECENT WORK AFFORDABLE AND INDUSTRY, INNOVATION SUSTAINABLE CITIES
AND SANITATION AND COMMUNITIES AND ECONOMIC CLEAN ENERGY AND INFRASTRUCTURE AND COMMUNITIES
GROWTH
1 6 11 8 7 9 11

The Framework received a Second Party Opinion from Sustainalytics, which opined that the
Framework is credible and impactful as well as aligned with the country’s current development
plan. Sustainalytics also considers the proceeds are expected to facilitate the country’s transition
to a low-carbon economy and lead to positive social impacts in Malaysia. The Framework was also
declared as being aligned with the four core components of the Green Bond Principles 2018, the
ASEAN Sustainability Bond Standards 2018 and Social Bond Principles 2020.
The Government will update the Framework regularly, taking into account latest developments in
the upcoming Malaysia development plans particularly in relation to additional achievable SDG
goals and development projects which meets international standards.

Sukuk Transaction
A two-day virtual roadshow was held prior to the issuance covering Asia, the Middle East, Europe
and the US. The issuance received an overwhelming response, attracting orders from over 220
global and domestic investors. This reflected investors’ confidence in Malaysia’s strong economic
fundamentals despite a challenging economic environment due to the COVID-19 pandemic. The
strong demand also resulted in the lowest ever yield and spread for a USD sukuk issuance by
Malaysia, with both the 10-year and 30-year tranches priced at 2.070% and 3.075%, respectively.
Investors’ Distribution and Profile
Following the immense response from investors during the roadshow, the sukuk offerings were
oversubscribed by 6.4 times. The final allocation was well-distributed globally, with almost 90%
of the 10-year Sustainability Sukuk allocated to investors in Asia, the Middle East and Europe,
particularly Singapore, Hong Kong, the United Arab Emirates and the UK. In terms of investors’
profiles, fund managers and insurance companies were the largest investors at 67%, followed by
banks (18%) as well as central banks and governments (14%).
ࢯࢸࢰࣣࣳࢥ 6. ,QYHVWRUVȃ3URࢆOH
Distribution by Region Distribution by Investor Type
30-year 30-year
3%
10%
21%
4% 1%
12% 14%
40%
45% 18%
33% 10-year 10-year
67%
10%
33%
83%
6%
ASIA EX-MALAYSIA FUND MANAGERS AND INSURANCE COMPANIES

MALAYSIA CENTRAL BANKS AND GOVERNMENTS
EMEA BANKS
US OTHERS

In addition, a total of 46% of the 30-year sukuk was distributed to investors in Asia, followed
by Europe, the Middle East and Africa (33%) and the US (21%). Fund managers and insurance
companies also dominated the subscription of the 30-year tranche at 83%, followed by central
banks and governments (10%) and banks (4%), as shown in Figure 6.
&RQFOXVLRQ
Since the successful global sukuk issuance in 2016, Malaysia re-entered the market with the
Government’s sixth USD-denominated sukuk issuance. Despite the COVID-19 pandemic impacting
the global economy, the Government’s resilient credit profile has resulted in the lowest yield and
spread to the US Treasury. The issuance of the world’s first sovereign USD Sustainability Sukuk
demonstrates the Government’s unwavering commitment to building a sound financing system
to support the national sustainable development agenda. The issuance has further reinforced
Malaysia’s position as a leading international Islamic financial hub in the global market.
5HIHUHQFHV
Environmental Finance. (2021). Sustainable Bonds Insight 2021. Retrieved from https://www.
environmental-finance.com/assets/files/research/sustainable-bonds-insight-2021.pdf
Islamic Corporation for the Development of the Private Sector (2021). Islamic Finance Development
Report 2020. Retrieved from https://icd-ps.org/uploads/files/ ICDRefinitiv%20IFDI%20Report%20
20201607502893_2100.pdf
International Monetary Fund. (2021). World Economic Outlook Update July 2021. Fault Lines Widen In
The Global Recovery. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2021/07/27/
worldeconomic-outlook-update-july-2021
Ministry of Finance Malaysia. (2021). Second-Party Opinion: The Government of Malaysia SDG Sukuk
Framework.
Ministry of Finance Malaysia. (2021). The Government of Malaysia SDG Sukuk Framework.
Navina Balasingam. (2021). Advancing Sustainable Finance in Malaysia – the Year in Review. Retrieved
from https://www.bixmalaysia.com/Learning-Center/Articles-Tutorials/Advancing-Sustainable-
Finance-in-Malaysia-%E2%80%93-the-Ye
Securities Commission Malaysia. (2019). Sustainable and Responsible Investment Sukuk Framework: An
Overview.
United Nations. (2015). Addis Ababa Action Agenda. Retrieved from https://www.un.org/esa/ffd/wp-
content/uploads/2015/08/AAAA_Outcome.pdf
United Nations. (2015). United Nations Summit on Sustainable Development. Retrieved from https://
sustainabledevelopment.un.org/rio20

Federal Government The Federal Government debt is mainly

denominated in ringgit, constituting 96.5%
Debt of the total, while the remaining 3.5% is
in foreign currency. Domestic debt stood
The issuances and management of the at RM924.8 billion, comprising mainly MGS
Federal Government debt are governed under (51.4%) and MGII (42.3%), with maturities
several legislations according to the types of ranging between 3 to 30 years. In contrast,
instruments. Conventional domestic securities, treasury bills, comprising MTB (RM10 billion)
namely MGS and MTB are issued under the and MITB (RM24 billion), are short-dated
Loan (Local) Act 1959 [Act 637] and Treasury instruments with 3-, 6-, 9- or 12-month
Bills (Local) Act 1946 [Act 188], respectively, maturity totalling RM34 billion. In addition,
while the Government Funding Act 1983 the outstanding balance of the SPK, which
[Act 275] regulates Islamic instruments was issued by the Government before the
issuance, namely MGII and MITB. In addition, establishment of the Public Sector Home
the External Loans Act 1963 [Act 403] governs
Financing Board (LPPSA), reduced
the issuance of offshore borrowings. These
further to RM24.1 billion and will be fully
legislations also stipulate the usage of
redeemed by 2024.
proceeds and the limits on the amount of
outstanding debts for each instrument.
Offshore borrowings, comprising market and
project loans mainly denominated in US dollar
As at end-June 2021, the overall Federal
Government debt stood at RM958.4 billion or (63%) and yen (36.5%), increased to RM33.6
63.3% to GDP. In terms of statutory debt limits, billion as at end-June 2021 due to the USD
accumulated domestic debts of MGS, MGII and global sukuk issuance. Market loans, consisting
MITB constituted 58.8% to GDP, below the of global sukuk and Samurai bond, stood at
65% threshold governed under Act 830. RM28.7 billion, while projects loans totalled
Meanwhile, the MTB has reached the RM10 RM4.9 billion, mainly for financing existing
billion ceiling as provided for under Act 188. programmes and projects for universities,
2ࢆVKRUH ERUURZLQJV DW 50 ELOOLRQ LV VWLOO sewerage plants and water transfer
within the permissible amount of RM35 billion infrastructure under bilateral and multilateral
under Act 403. arrangements.
࣮ࢍ࢚ࣇࢥ Debt Legislative Guidelines
ࢍ࢛࣮ ࣮ࣧࢍ࣮࣮ࣣࣳࣔअ ࣇࢸ࣍ࢸ࣮ ࢥ࣎ࢡࣃࣳ࣎ࢥ
/RDQ /RFDO $FW
*RYHUQPHQW )XQGLQJ $FW

Outstanding MGS, MGII and MITB not WR *'3
exceeding 65% to GDP 50 ELOOLRQ
7HPSRUDU\ 0HDVXUHV IRU *RYHUQPHQW
)LQDQFLQJ &RURQDYLUXV 'LVHDVH
&29,' $FW
Offshore borrowings not exceeding

([WHUQDO /RDQV $FW 50 ELOOLRQ
RM35 billion
7UHDVXU\ %LOOV /RFDO $FW MTB not exceeding RM10 billion 50 ELOOLRQ

࣮ࢍ࢚ࣇࢥ Federal Government Debt by Instrument

2020 – 2021
ࣧࢵࢍࣣࢥ ࣧࢵࢍࣣࢥ ࣮ࣔ ࢰࢡ࣠

ࣣ࣍ ࣍ࢸࣇࣇࣇࢸࣔ࣎
મય મય
࢛ࣔ࣍࣠ࣔ࣎ࢥ࣮࣎
2020 20212 2020 20212 2020 20212
'RPHVWLF GHEW 96.8 96.5 60.1 61.1

MGS 436,418 475,418 49.6 49.6 30.8 31.4
MGII 1
375,266 391,266 42.7 40.8 26.5 25.8
SPK 24,100 24,100 2.7 2.5 1.7 1.6
Treasury bills 15,500 34,000 1.8 3.6 1.1 2.3
2IIVKRUH ERUURZLQJV 3.2 3.5 2.0 2.2
Market loans 23,055 28,703 2.6 3.0 1.6 1.9
Project loans 5,221 4,901 0.6 0.5 0.4 0.3
7RWDO 100.0 100.0 62.1 63.3
Memorandum item:
Non-resident holdings of ringgit-denominated 208,190 233,826 24.5 25.3 14.7 15.4
debt securities
1
Including Sukuk Prihatin
2
End-June 2021
For 2021, the debt service charges (DSC) to As at end-June 2021, the share of resident
revenue ratio is estimated to increase to holdings to total debt slightly decreased to
17.6% (2020: 15.3%) due to the anticipated 72.6%. Resident holdings amounted to
reduction in revenue collection as most of the RM696.1 billion, mainly consisting of large
economic sectors was not allowed to operate and long-term institutional investors, such
during the MCO. The financing costs for as Employees Provident Fund (24.1%),
domestic debt instruments is expected to reach insurance companies (4.6%) and Retirement
RM38.1 billion, while the balance of RM0.9 Fund (Incorporated) (2.9%). Other resident
billion is for foreign-currency loans. The holders include banking institutions (33.6%),
weighted average interest rate for outstanding development financial institutions (1.9%) and
domestic debt is estimated to be lower at others (5.5%).
3.957% (2020: 4.032%), reflecting the low-
interest-rate environment, despite higher Non-resident holdings remained stable at
reopenings for current year issuances. RM262.3 billion, accounting for 27.4% of
total debt. Long term institutions, such as
In terms of debt maturity profile, the weighted pension funds, insurance companies as
average time to maturity shortened to 8.1 well as central bank, supranational and
years as at end-June 2021 (2020: 8.6 years). sovereigns, held a sizeable share of 13.6%,
The share of medium- and long-term papers while fund managers accounted for 9.4%.
with a remaining maturity of 6 years and The balance was contributed by banking
above decreased to 52.1% (end-2020: 56.6%), institutions with 3.6% holdings and other
while the share of securities with a remaining non-residents (0.8%). Furthermore, non-
maturity of 5 years and below increased to resident investment in MGS was sustained
47.9% (end-2020: 43.4%). This is in line with at 40.4% of the total MGS outstanding
the Government debt management strategy to (end-2020: 40.6%), UHࢊHFWLQJ UHQHZHG
balance the market demand with immediate LQYHVWRUVȆ FRQࢉGHQFH DQG LQWHUHVW LQ
financing needs. Government bonds.

࣮ࢍ࢚ࣇࢥ Federal Government Debt by Holder

2020 – 2021

2020 20213 2020 20213 2020 20213
5HVLGHQW 73.6 72.6 45.7 46.0

Employees Provident Fund 219,828 230,894 25.0 24.1 15.5 15.3
Retirement Fund (Incorporated) 25,027 27,598 2.8 2.9 1.8 1.8
Insurance companies 40,987 44,057 4.7 4.6 2.9 2.9
Banking institutions 288,475 322,499 32.8 33.6 20.3 21.3
Development financial institutions 16,670 17,817 1.9 1.9 1.2 1.2
Others1 56,710 53,202 6.4 5.5 4.0 3.5
1RQUHVLGHQW 26.4 27.4 16.4 17.3
Fund manager 77,553 90,237 8.8 9.4 5.5 6.0
Central bank, supranational and sovereigns 70,877 81,654 8.1 8.5 5.0 5.4
Banking institutions 32,684 33,993 3.7 3.6 2.3 2.2
Pension funds 35,913 41,106 4.1 4.3 2.5 2.7
Insurance companies 7,712 7,646 0.9 0.8 0.6 0.5
Others 2
7,124 7,685 0.8 0.8 0.5 0.5
7RWDO 100.0 100.0 62.1 63.3
1
Includes other non-bank financial institutions, statutory bodies, nominees and trustee companies, co-operatives, securities placed by institutional
investors at the central bank and unclassified items
2
Include nominees/custodians, individuals, non-financial corporations, multilateral and bilateral institutions as well as unidentified sectors
3
End-June 2021
0DOD\VLDȆV 'HEW 6XVWDLQDELOLW\ $QDO\VLV
,QWURGXFWLRQ
The COVID-19 pandemic has severely affected the global economy and led countries to implement
expansionary fiscal measures, particularly providing support to households, businesses and health
services. With limited fiscal space, most countries have resorted to raising additional borrowings
to cater for additional expenditure to save lives and livelihood, businesses and the economy. Thus,
assessing debt sustainability is imperative to ensure medium and long-term fiscal robustness in
weathering the impact of external economic shocks.
Debt sustainability for a country can be defined as a situation in which a sovereign is expected
to be able to continue servicing its current and future payment obligations without exceptional
financial assistance or going into default. In general, Debt Sustainability Analysis (DSA) framework,
developed by the International Monetary Fund (IMF), aims to:

a) Assess the current debt situation, its maturity structure, whether it has fixed or floating rates,
whether it is indexed, and by whom it is held;
b) Identify vulnerabilities in the debt structure or the policy framework far enough in advance so
that policy corrections can be introduced before payment difficulties arise; and
c) In cases where such difficulties have emerged or are about to emerge, examine the impact of
alternative debt-stabilising policy paths.
Based on this framework, the debt burden threshold for emerging markets is benchmarked at a
debt-to-GDP ratio of 70% and gross financing needs-to-GDP ratio of 15%.
In the last decade, the two main factors contributing to debt creation are primary deficit and
real interest rate. Meanwhile, real GDP growth has led to a lower fiscal deficit and subsequently
lowered the debt ratio, indicating an inverse correlation between the debt-to-GDP ratio and
economic growth. In contrast, for 2020, the COVID-19 pandemic has resulted in a GDP contraction,
thus disrupting the fiscal consolidation path. Hence, as illustrated in Figure 1, macro-fiscal factors
namely primary deficit, real GDP growth and real interest rate, contributed to the surge of debt-to-
GDP ratio in 2020.
ࢯࢸࢰࣣࣳࢥ 1. Debt-Creating Flows
(% GDP)
12
10
8
6
4
2
0
-2
-4
-6
-8
-10
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
PRIMARY DEFICIT REAL INTEREST RATE REAL GDP GROWTH

EXCHANGE RATE DEPRECIATION RESIDUAL CHANGE IN GROSS DEBT
Source: Ministry of Finance, Malaysia and IMF
6FHQDULR $QDO\VHV
In the baseline scenario, the gross financing needs are estimated at 13.8% to GDP in 2021 and are
expected to reduce to 7.1% by 2026. Consequently, the overall debt-to-GDP ratio1 is estimated at
around 65% in 2021 and projected to stabilise to around 64% by 2026. These projections are still
below the DSA’s debt and gross financing needs benchmark of 70% and 15% to GDP, respectively.
This scenario is based on the following macro-fiscal assumptions:
1
For the purpose of this DSA, debt coverage only refers to Federal Government debt

࣍ࢍ࢛ࣣࣔࢯࢸ࢛ࣧࢍࣇ ࣾࢍࣣࢸࢍ࢚ࣇࢥࣧ ࢍࣾࢥࣣࢍࢰࢥ મય
Real GDP growth (% per annum) 5.1%
Inflation (% per annum) 2.1%
Primary Balance (% to GDP) -2.1%
Effective Interest Rate (%) 4.3%
In addition to the baseline scenario, the DSA also simulates alternative scenarios to estimate debt
ratio and gross financing requirements on the following assumptions:
i. Constant Primary Balance Scenario
This scenario assumes the primary balance remains constant with no fiscal consolidation over the
medium term. With this assumption, the debt level is projected to reach 74.4% to GDP by 2026,
exceeding the DSA’s debt benchmark of 70%. The gross financing requirements will also increase to
13.8% to GDP in 2021 and estimated to reduce to 10.6% by 2026.
ii. Historical Scenario
Under this scenario, it is assumed that the historical trend of the macro-fiscal variables will be
maintained over the projection years. The debt-to-GDP ratio is forecasted to slightly exceed the
DSA’s debt benchmark at 70.7% by 2026, while gross financing needs are projected to decline
to around 9% to GDP by 2026. This indicates that assuming the previous fiscal consolidation
effort is replicated, the Government may require a longer time frame to reduce its debt-to-GDP
ratio.
All the scenarios are featured graphically, as shown in Figure 2 below:
ࢯࢸࢰࣣࣳࢥ 2. Baseline and Alternative Scenarios
GROSS NOMINAL DEBT GROSS FINANCING NEEDS

(% GDP) (% GDP)
80 16
75 14
70 12
65 10
60 8
55 6
Projection Projection
50 4
2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 2025 2026
BASELINE
HISTORICAL
CONSTANT PRIMARY BALANCE

6HQVLWLYLW\ $QDO\VHV
6WUHVV WHVWV DUH FRQGXFWHG WR VLPXODWH WKH LPSDFW RI PDFURࢉVFDO VKRFNV RQ 0DOD\VLDȆV GHEW
VXVWDLQDELOLW\ )XUWKHUPRUH DGGLWLRQDO VWUHVV WHVWV DUH DSSOLHG E\ VLPXODWLQJ FRPELQHG PDFURࢉVFDO
shock as well as contingent liabilities shock. The outcome of the analysis highlights the Government’s
level of indebtedness in the event of any shocks, thus guiding the formulation of mitigation
measures before such shocks arise.
i. Primary Balance Shock Scenario
$VVXPLQJ WKH SULPDU\ GHࢉFLW LV KLJKHU DW DQG WR *'3 LQ DQG WKH GHEWWR
GDP ratio is projected to peak at 66.7% in 2023 and gradually reduce to 65.6% by 2026. Gross
ࢉQDQFLQJ QHHGV ZLOO GHFOLQH WR E\ %RWK LQGLFDWRUV UHPDLQ EHORZ WKH '6$ EHQFKPDUN
ii. Real GDP Growth Shock Scenario
Assuming real GDP growth slows down to 2.5% and 1.9% in 2022 and 2023, the debt level is
estimated to peak at 73.6% to GDP by 2023 and will remain elevated at 71.1% in 2026, exceeding
WKH '6$ȆV GHEW EHQFKPDUN RI *URVV ࢉQDQFLQJ QHHGV ZLOO UHDFK WR *'3 LQ DQG
gradually decline to 7.8% by 2026.
iii. Real Interest Rate Shock Scenario
$VVXPLQJ HࢆHFWLYH LQWHUHVW UDWH LQFUHDVHV E\ DQ DYHUDJH RI EDVLV SRLQWV DQQXDOO\ IURP
until 2026, the debt-to-GDP ratio will exceed the DSA benchmark by 2025 at 70.2%. Moreover,
WKH JURVV ࢉQDQFLQJ QHHGV DUH KLJKHU WKDQ RWKHU VKRFN VFHQDULRV LQ WR UDQJLQJ
between 9% and 11% to GDP.
iv. Exchange Rate Shock Scenario
Assuming the exchange rate spiked by 30% from the baseline assumption in 2022, the debt
UDWLR LV SURMHFWHG WR DYHUDJH DW WR *'3 WKURXJKRXW WKH SURMHFWLRQ \HDUV *URVV ࢉQDQFLQJ
requirements will continue to decline from 11.8% to GDP in 2022 to 6.8% by 2026. The shock
scenario has the least impact on the debt parameter compared to other shock scenarios due to
the low composition of foreign-denominated instruments.
v. Combined Macro-Fiscal Shock Scenario
Assuming all the macro-fiscal shocks occur simultaneously in 2022, the debt is projected to
increase to 75.3% to GDP in 2023 and subsequently surge to 81.5% by 2026, significantly
surpassing the DSA benchmark. Gross financing needs are expected to remain high at around
12% to GDP throughout the projection period.
vi. Contingent Liability Shock Scenario
Assuming the Federal Government is obliged to provide an additional allocation of around 13%
to GDP in 2022 due to the materialisation of contingent liability, the debt ratio will immediately
accelerate to 82.6% to GDP with gross financing requirement also escalating to 26.9% to
GDP during the same year. The debt level remain elevated during the projection period, far
exceeding the DSA benchmark, representing the worst case of all shock scenarios.

ࢯࢸࢰࣣࣳࢥ 3. Macro-Fiscal Stress Tests
GROSS NOMINAL DEBT GROSS NOMINAL DEBT GROSS FINANCING NEEDS
(% GDP) (% Revenue) (% GDP)

80 600 16
75 14
70 500 12
65 10
60 400 8
55 6
50 300 4
2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026
BASELINE REAL GDP GROWTH SHOCK PRIMARY BALANCE SHOCK

REAL EXCHANGE RATE SHOCK REAL INTEREST RATE SHOCK
ࢯࢸࢰࣣࣳࢥ 4. Additional Stress Tests

GROSS NOMINAL DEBT GROSS NOMINAL DEBT GROSS FINANCING NEEDS
(% GDP) (% Revenue) (% GDP)
90 700 30
85
25
80 600
20
75
70 500 15
65
10
60 400
5
55
50 300 0
2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026
BASELINE
COMBINED MACRO-FISCAL SHOCK
CONTINGENT LIABILITY SCHOCK
Source: Minisrty of Finance, Malaysia and IMF
5LVN $VVHVVPHQW
A heat map provides signals on the impact of external shocks to debt burden indicators under
the baseline and shock-imputed scenarios. In addition, it also summarises the outcome of DSA on
debt and gross financing requirements, as well as risk assessment on the debt profile. The risk
assessment thresholds for each indicator are as follows:

ࢯࢸࢰࣣࣳࢥ Heat Map
Real GDP Growth Primary Balance Real Interest Rate Real Exchange Rate Contingent Liability
Debt level
Shock Shock Shock Shock Shock
Real GDP Growth Primary Balance Real Interest Rate Real Exchange Rate Contingent Liability
Gross financing needs
Shock Shock Shock Shock Shock
External Change in the

Market Public Debt Held by Foreign Currency
Debt profile Financing Share of Short-
Perception Non-Residents Debt
Requirements Term Debt
+($7 0$3 '(%7 /(9(/ *5266 ),1$1&,1* 1(('6 '(%7 352),/(
If the debt level does not If the gross financing If the country’s parameter
exceed 70% to GDP under needs do not exceed 15% value is less than the lower
Low Risk
baseline or specific shock to GDP under baseline or risk-assessment benchmarks
scenarios specific shock scenarios
If the debt level exceeds If the gross financing If the country’s parameter
70% to GDP under the needs exceed 15% to GDP value is in between the
Moderate Risk
specific shock scenario but under the specific shock lower and upper risk-
not baseline scenario but not baseline assessment benchmarks
If the debt level exceeds If the gross financing If the country’s parameter
High Risk 70% to GDP under the needs exceed 15% to GDP value exceeds the upper
baseline scenario under the baseline scenario risk-assessment benchmarks
As illustrated in the heat map, primary balance and real exchange rate shocks pose low-risk
exposure to Federal Government debt and gross financing needs. However, real GDP growth and
real interest rate shocks result in moderate risk exposure to the debt level, while contingent
liability shock presents a moderate risk to debt level and gross financing needs. In terms of debt
profile vulnerabilities, it is based on lower and upper risk-assessment benchmarks for each debt
profile parameter, as demonstrated in Figure 6.
ࢯࢸࢰࣣࣳࢥ 'HEW3URࢆOH9XOQHUDELOLWLHV
65%
1.2%
600 15 1 45 26% 60
200 183 bps 5 0.5 15 20

3%
Bond Spread External Financing Annual Change in Public Debt Held by Public Debt in
(in basis point) Requirement Short Term Non-Residents Foreign Currency
(% to GDP) Public Debt (% to total) (% to total)
MALAYSIA (% to total)
LOWER EARLY WARNING
UPPER EARLY WARNING

Based on the assessment, the annual change in short-term debt is susceptible to high risk due
to the increased proportion of short-term debt in 2020 compared to the historical average.
Similarly, the external financing requirement also carries a high-risk exposure to Malaysia’s debt
profile. Nevertheless, the availability of ample external assets which can be utilised to meet these
obligations will mitigate this risk.
In terms of market perception, Malaysia is assessed as low risk due to its lower-than-benchmarked
average long-term bond spread over US bonds, indicating sustained investor confidence in
Malaysia’s debt instrument. In addition, its debt in foreign currency also poses a low risk given its
minimal composition of foreign-denominated debt, at about 3% to GDP. Nevertheless, the debt held
by non-residents imposes a moderate risk, albeit mitigated by the presence of a deep and liquid
domestic debt market.
Overall, the DSA simulation demonstrates increased debt vulnerabilities to the Government in the
event of any shocks, thus limiting the fiscal space and the ability to raise additional borrowing
for counter-cyclical responses. Furthermore, the higher debt level will lead to higher debt service
charges, thus restraining the Government’s capacity to allocate for other expenditures. In this
regard, the Government remains committed to fiscal consolidation in the medium term as outline
in the 12th Malaysia Plan with a deficit target of 3.5% to GDP by 2025.
&RQFOXVLRQ
The DSA assessment has taken into account the impact of the COVID-19 crisis in the macro-fiscal
parameters for 2020. The outcome of this simulation highlights the increased risk exposure of the
Government’s indebtedness in the medium term in the event of materialisation of external shocks.
Nevertheless, the Government’s immediate priority is to return the nation to its potential growth
trajectory while allowing society and businesses to adapt to new norms and invest for future
growth to provide new job opportunities. The continuous provision of fiscal support in the medium
term is projected to lead to a more gradual pace of fiscal consolidation, resulting in a moderate
decline in the debt-to-GDP ratio, as illustrated in the baseline scenario. However, the planned fiscal
reforms, anchored by the introduction of the Fiscal Responsibility Act, adoption of Medium-Term
Revenue Strategy and expenditure reviews, will accelerate the resumption of fiscal consolidation
post-crisis. These initiatives will build sufficient fiscal buffers in ensuring the country’s fiscal and
debt sustainability in the medium and long term.
5HIHUHQFHV
International Monetary Fund (IMF) (2013) Staff Guidance Note for Public Debt Sustainability Analysis in
Market-Access Countries. Retrieved from https://www.imf.org/external/np/pp/eng/2013/050913.pdf
International Monetary Fund (IMF) (2017). Debt Sustainability Analysis: Introduction. Retrieved from
https://www.imf.org/external/pubs/ft/dsa/
International Monetary Fund (IMF) (2019). Article IV Staff Report. Retrieved from https//www.imf.org/
en/Publications/CR/Issues/2019/03/08/Malaysia-2019-Article-IV-Consultation-Press Release-Staff-
Report-and-Statement.
Ministry of Finance. (2019). Fiscal Outlook and Federal Government Revenue Estimates 2020: Malaysia’s
Debt Sustainability Analysis (pp:122-128). Kuala Lumpur. Percetakan Nasional Malaysia Berhad.
International Monetary Fund (IMF) (2020). Finance & Development September 2020. Back to Basics:
What is Debt Sustainability?. Retrieved from https://www.imf.org/external/pubs/ft/fandd/2020/09/
pdf/what-is-debt-sustainability-basics.pdf
International Monetary Fund (IMF) (2021). Article IV Staff Report. Retrieved from https//www.imf.org/
en/Publications/CR/Issues/2021/03/08/Malaysia-2021-Article-IV-Consultation-Press Release-Staff-
Report-and-Statement

External Debt the issuance of the global sukuk by the Federal

Government and foreign currency bonds and
sukuk by public corporations. Meanwhile, non-
External debt comprises the nation’s offshore resident holdings of ringgit-denominated debt
borrowing, non-resident holdings of ringgit- securities and deposits collectively accounted
denominated debt securities, non-resident for RM338.4 billion, with a higher share of
deposits and other external debt. As at end- 33.2% of the total.
June 2021, the external debt increased to
RM1,021 billion or 67.4% to GDP, mainly In terms of maturity profile, the medium- to
attributed to higher offshore borrowings long-term external debt stood at 62.2% of the
from the public sector as well as non- total, reflecting low refinancing risk. Short-term
resident holdings of ringgit-denominated debt external debt accounted for 37.8%, backed by
securities. Offshore borrowings remained the an adequate level of international reserves.
largest component of external debt at RM589.5 Furthermore, the external risk is also mitigated
billion, with a share of 57.8%. The higher by sizeable external assets and export
public sector offshore borrowings were due to earnings.
࣮ࢍ࢚ࣇࢥ External Debt

2020 – 2021

2020 20213 2020 20213 2020 20213

2IIVKRUH ERUURZLQJV 58.4 57.8 39.5 38.9
Medium-and long-term debt 360,997 382,627 37.7 37.5 25.5 25.3
Public sector 143,934 164,736 15.0 16.2 10.2 10.9
Federal Government 23,672 28,415 2.5 2.8 1.7 1.9
Public corporations 120,262 136,321 12.5 13.4 8.5 9.0
Private sector 217,063 217,890 22.7 21.3 15.3 14.4
Short-term debt 198,563 206,853 20.7 20.3 14.0 13.6
1RQUHVLGHQW KROGLQJV RI ULQJJLWGHQRPLQDWHG
23.0 24.0 15.5 16.2
GHEW VHFXULWLHV
Medium-and long-term debt 210,811 233,045 22.0 22.8 14.9 15.4
Federal Government 200,060 220,612 20.9 21.6 14.1 14.6
Others 1
10,751 12,434 1.1 1.2 0.8 0.8
Short-term debt 9,292 11,782 1.0 1.2 0.6 0.8
1RQUHVLGHQW GHSRVLWV 9.8 9.1 6.7 6.2
2WKHUV2 8.8 9.1 5.9 6.1
7RWDO 100.0 100.0 67.6 67.4
1
Include private sector and public corporations
2
Comprise trade credits, IMF allocation of Special Drawing Rights and miscellaneous
3
End-June 2021
Note: Total may not add up due to rounding
Source: Bank Negara Malaysia

Public Sector Debt remains the largest component with a share of

70.7% of the total, followed by NFPCs (22.9%)
and statutory bodies guaranteed debts (6.4%).
Public sector debt comprises outstanding debt
obligations of the Federal Government, state The net increase in NFPCs debt to RM309.9
governments, non-financial public corporations billion was attributed to the loan drawdown
(NFPCs), and sovereign-guaranteed debts of for ongoing infrastructure projects as well
statutory bodies. As at end-June 2021, public as issuances of bonds abroad by public
sector debt increased to RM1,355 billion or corporations. In addition, the statutory
89.5% to GDP, mainly contributed by higher bodies’ debt increased to RM86.7 billion due
Federal Government debt resulting from to additional guaranteed loans raised by the
borrowings to finance deficit and COVID-19 Federal Land Development Authority (FELDA)
assistance and stimulus packages announced and LPPSA for their investment and refinancing
during the year. The Federal Government debt purposes.
࣮ࢍ࢚ࣇࢥ Public Sector Debt

2020 – 2021

2020 20211 2020 20211 2020 20211
)HGHUDO *RYHUQPHQW 879,560 958,388 70.1 70.7 62.1 63.3
Domestic 851,284 924,784 67.8 68.2 60.1 61.1
Offshore 28,276 33,604 2.3 2.5 2.0 2.2
6WDWXWRU\ ERGLHV 80,660 86,735 6.4 6.4 5.7 5.7
Domestic 80,660 86,735 6.4 6.4 5.7 5.7
of which: Guaranteed 80,660 86,735 6.4 6.4 5.7 5.7
Offshore - - - - - -
1RQILQDQFLDO SXEOLF FRUSRUDWLRQV 23.5 22.9 20.8 20.5
Domestic 181,809 180,440 14.5 13.3 12.8 11.9
Offshore 113,066 129,508 9.0 9.6 8.0 8.6
7RWDO 1,255,095 1,355,071 100.0 100.0 88.6 89.5
1
End-June 2021
Outlook for 2022 2021 – 2025, with a development expenditure

ceiling of RM400 billion, is expected to
The Government will continue its expansionary increase Federal Government borrowings.
fiscal policy in the 2022 Budget to ensure As such, gross financing requirements,
the rakyat’s well-being, protecting businesses including additional allocation for the
continuity and revitalising the economy. In COVID-19 Fund, are expected to remain
addition, the Twelfth Malaysia Plan (12MP), sizeable at around 12% to GDP.

Given the sufficient liquidity, the Government’s will be contingent on the pace of economic
borrowing strategy will continue to prioritise recovery. Subsequently, the Government aims
domestic market issuance to balance the to gradually reduce its level of indebtedness
financing costs with acceptable risk exposure and strengthen debt affordability.
over the medium term. The composition
of conventional and Shariah-compliant
instruments will be distributed over a Conclusion
range of maturities to ensure a well-spread
maturity spectrum in view of market demand. The Federal Government has demonstrated
Furthermore, the accommodative monetary a credible track record in consolidating its
debt level post-crisis, aided by pragmatic
policy, availability of a deep domestic market
fiscal policy and strong execution of national
and the diversity of investor base will further
development plans. As the country relies on
support the Government’s funding needs.
expansionary measures to ensure a durable
and sustainable recovery, it is crucial for
The COVID-19 pandemic has elevated the
the Government to optimise the utilisation
Federal Government’s debt level due to the
of resources to bolster the economy
provision of additional assistance and stimulus
while cognisant of its medium-term fiscal
packages. Thus, the Federal Government sustainability. Thus, the gradual reopening
overall debt is projected to reach 66% to GDP, of economic sectors will facilitate the
while its statutory debt at 63.4% by the end transition towards the new norm, which will
of 2022, lower than the new debt threshold of further boost growth and ease the need for
65% to GDP as approved by the Parliament. further fiscal support. Debt management
In this regard, the Government remains policy will continue to uphold the principles
committed to adhering to the statutory debt of accountability and transparency while
limit stipulated in the respective Acts. Moving ensuring debt sustainability in the medium
forward, the degree of fiscal consolidation term.

ࢯࢸࢰࣣࣳࢥ 4.1. Issuance by Maturity ࢯࢸࢰࣣࣳࢥ 4.2. BTC Ratios of MGS and MGII
% RM billion Ratio
100 25 4.0
3.5
80 41.8% 20
50.9% 49.2% 49.8% 3.0
57.0%
15 2.5
60
2.0
40 10 1.5
1.0
20 5
0.5
0 0 0.0
2017 2018 2019 2020 2021 2017 2018 2019 2020 20211
7%,//6 ৰ৴72ৱ৯<($5 727$/0217+/<,668$1&(
৲72৶<($5 ৲৯<($5
%7&5,*+76&$/(
ৰ৯<($5 $9(5$*(%7&5,*+76&$/(
ࢯࢸࢰࣣࣳࢥ 4.3. MGS Benchmark Yield Curve ࢯࢸࢰࣣࣳࢥ 4.4. MGS Indicative Yields
% %
5.0 5.5
4.5
4.6
4.0
3.987
3.7
3.5
3.196
3.0
2.8 2.683
2.34
2.5
1.9 1.75
2.0
1.5 Year 1.0

3 5 7 10 15 20 30 2017 2018 2019 2020 20211
ৱ৯ৰ৸ ৲<($5 ৰ৯<($5 OPR

ৱ৯ৱ৯ ৱ৯<($5
৴<($5
ৱ৯ৱৰৰ
ࢯࢸࢰࣣࣳࢥ 4.5. Federal Government Debt Composition

RM billion % GDP
1,000 70
60
800
50
600
40
400 30
20
200
10
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20212
OFFSHORE BORROWINGS MGII 67$78725<'(%772*'35,*+76&$/(

OTHER DOMESTIC DEBT MGS 67$78725<'(%7&(,/,1*5,*+76&$/(
1
End-August 2021
2
End-June 2021
Source: Ministry of Finance, Malaysia, Bank Negara Malaysia and Bloomberg

ࢯࢸࢰࣣࣳࢥ 4.6. Federal Government Debt by Holder1 ࢯࢸࢰࣣࣳࢥ 4.7. Non-Resident Holdings of
Ringgit-Denominated Debt Securities
RM billion %
100 60
34.4%
31.1%
80
24.1% 50
40.4
60
27.4%
15.7% 40
40 13.0%
5.5% 30 25.3
20
2.9% 2.9%
1.9%
2.9% 0 20
26.9%
33.6%
Central bank, supranational

and sovereigns
Fund manager
Pension funds
Banking institutions
Insurance companies
Others
4.6%
10
EPF BANKING 0
INSTITUTIONS 2017 2018 2019 2020 20211
INSURANCE
COMPANIES KWAP
DFIs OTHERS
MGS
NON RESIDENT
DOMESTIC DEBT
ࢯࢸࢰࣣࣳࢥ 4.8. Federal Government Debt by ࢯࢸࢰࣣࣳࢥ 4.9. Debt Service Charges
Remaining Maturity
RM billion RM billion % revenue
500 50 20
400 40 16
300 30 12
200 29.1% 20 8
30.8% 29.7%
19.9% 22.1%
100 10 4
0 0 0
2017 2018 2019 2020 20211 2017 2018 2019 2020 2021
< 5 YEARS 11-15 YEARS OFFSHORE BORROWING

6-10 YEARS ≥16 YEARS DOMESTIC LOANS
% REVENUE (RIGHT SCALE)
ࢯࢸࢰࣣࣳࢥ 4.10. 'HEW0DWXULW\3URࢆOH

RM billion
120
100
80
60
40
20
0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
MGS OTHER DOMESTIC DEBT

MGII OFFSHORE BORROWINGS
1
End-June 2021

Fiscal Risk
and Liability
189 ࢡࢥ ࢚࣮ࢍ ࣎ࢡࣇ ࢸ ࢍ ࢚ࢸ ࣇ ࢸ ࣮ ࢸ ࢥ ࣧࢥ ऄࣣ࣠ࣔࣧࣳ ࢥ
19 0 ࢰࣔࣾ ࢥ ࣣ ࣎࣍ࢥ ࣮࣎ࢰࣳࢍ ࣣ ࢍ ࣮࣎ࢥ ࢥ ࣧ
192 ࣍ࢍࣇ ࢍअࣧ ࢸ ࢍࢡࢥ ࣾ ࢥ ࣇࣔ࣠࣍ࢥ ࣮࣎

࢚ࢥࣣࢵࢍࢡ
193 ࣮ࣔࢵࢥ ࣣࣇ ࢸ ࢍ ࢚ࢸ ࣇ ࢸ ࣮ ࢸ ࢥ ࣧ
193 ࢛࢛ࣔ࣎ࣇࣳࣧ ࢸࣔ࣎

ࣧࢥ࢛࣮ࢸࣔ࣎ ࢯࢸ࢛ࣧࢍࣇ ࣣࢸࣧࣅ ࢍ࣎ࢡ ࣇࢸࢍ࢚ࢸࣇࢸ࣮अ
Fiscal Risk and Liability
Overview liabilities on the fiscal position. The

Government will continue to pursue recovery
actions to mitigate this risk exposure from
The prolonged COVID-19 pandemic has 1MDB’s obligations.
disrupted business activities and the livelihood
of the rakyat. The situation requires the
Government to further support economic
activity through various stimulus and Debt and Liabilities
assistance packages, either from direct fiscal
injection or non-fiscal measures such as special
Exposure
relief funds and micro-credit schemes as well
as through quasi-fiscal instruments such as The debt and liabilities exposure of the Federal
guarantee facilities for businesses. The current Government discloses the overall indebtedness
situation, where the pandemic is still unfolding, of the Government. The position comprises the
and the provision of fiscal stimulus and Federal Government debt and other liabilities
assistance measures needs to be continued, in the form of committed guarantees, 1MDB’s
has elevated the Government’s risk exposure. debt as well as cash commitments of projects
Nevertheless, mitigating measures, in particular under public-private partnership (PPP), private
rigorous evaluation as well as continuous finance initiative (PFI) and PBLT Sdn. Bhd.
monitoring and adjustments of financials and (PBLT). The reporting of a comprehensive
debts, are implemented to reduce the impact debt and liabilities position is also consistent
of the exposure. with the Government’s efforts to progress
towards accrual accounting standards and
Government guarantees continue to increase, statistical treatment under the International
albeit at a much slower pace, as existing Public Sector Accounting Standards (IPSAS) as
development and infrastructure projects are well as the Public Sector Debt Statistics by the
being carried out sparingly. The continuation of International Monetary Fund (IMF). As at end-
strategic infrastructure projects is to catalyse June 2021, the Federal Government debt and
recovery momentum while spurring economic liabilities exposure was estimated at RM1,333.7
activities amid the pandemic. However, the billion or 88.1% to GDP.
extended movement restrictions imposed to
࣮ࢍ࢚ࣇࢥ Federal Government Debt and
curb the spread of the pandemic have increased Liabilities Exposure,
the Government’s risk exposure in terms of 2020 – 2021
support provided to entities operating in the
services sector, such as the public transport
ࣧࢵࢍࣣࢥ ࣮ࣔ ࢰࢡ࣠
operators and highway concessionaires. The ࣣ࣍ ࢚ࢸࣇࣇࢸࣔ࣎
࢛ࣔ࣍࣠ࣔ࣎ࢥ࣮࣎ મય
situation demands the Government to heighten
WKH PRQLWRULQJ DQG HYDOXDWLRQ RI ࢉQDQFLDO 2020 20211 2020 20211
conditions of these companies to quantify the Federal
879.6 958.4 62.1 63.3
risks and formulate mitigating measures to Government debt
UHGXFH LWV ࢉVFDO H[SRVXUH Committed
185.7 190.4 13.1 12.6
guarantees
In the effort to contain the exposure of other
1MDB 31.1 32.0 2.2 2.1
liabilities, the Government has proceeded
with the recovery of 1Malaysia Development Other liabilities
171.8 152.9 12.1 10.1
(PPP, PFI, PBLT)
Berhad’s (1MDB) assets. The actions consist
of negotiations with related parties, legal Total 1,268.2 89.5 88.1
proceedings and civil suits. The recovery
exercise has enabled the Government to 1
End-June
reduce the financial impact from 1MDB’s Source: Ministry of Finance, Malaysia

loan facility and ongoing public infrastructure

Government Guarantees projects, respectively. In terms of proportion
by segment, more than half (54.2%) of the
Government guarantee (GG) is one of the fiscal GGs issued are for infrastructure-related
tools mobilised by the Federal Government to financing, followed by services (26.6%),
provide a guarantee on financing raised by investment holding (8.3%), utilities
an entity to execute strategic infrastructure (6.8%) and others (4.1%). The ten main GGs
projects and programmes which will boost constituted more than 80% of the total
economic and social impact on national guarantees.
development. GG issuance is governed under
the Loans Guarantee (Bodies Corporate) Act The weighted average time to maturity of the
1965 [Act 96], which requires each guaranteed GGs stood at 10.9 years as at end-June 2021,
entity to be gazetted as a body corporate while in terms of maturity profile, 52.8% is
under the Act. Currently, the GG facility is expected to mature within ten years,
only granted to government-related entities, whereas 47.2% is expected to mature beyond
such as government-linked companies (GLCs), ten years. Currency risk is largely reduced as
statutory bodies as well as agencies under more than 90% of the GGs is denominated
state governments. in ringgit while the remaining is a mixture of
other currencies, such as renminbi, yen and
As at end-June 2021, total outstanding the US dollar.
GGs increased slightly to RM300.4 billion or
19.8% to GDP (2020: RM294.7 billion; 20.8% Conventionally, GG is a facility given to
to GDP), mainly attributed to new issuances financially sustainable entities to undertake
by the Public Sector Home Financing Board strategic projects that have a longer gestation
(LPPSA) and DanaInfra Nasional Berhad period. It also facilitates the entities in
(DanaInfra) to finance civil servants housing accessing borrowing at a more competitive
࣮ࢍ࢚ࣇࢥ Major Recipients of Loan Guarantees,

2020 – 2021

ࢥ࣮࣎ࢸ࣮अ મય મય
2020 20211 2020 20211 2020 20211

7RWDO ORDQ JXDUDQWHHV 100.0 100.0 20.8 19.8
of which:
DanaInfra Nasional Berhad 72,320 76,020 24.5 25.3 5.1 5.0
National Higher Education Fund Corporation 39,800 40,000 13.5 13.3 2.8 2.6
Prasarana Malaysia Berhad 38,914 38,914 13.2 12.9 2.8 2.6
Public Sector Home Financing Board 30,150 34,150 10.2 11.4 2.1 2.3
Malaysia Rail Link Sdn. Bhd. 21,530 23,177 7.3 7.7 1.5 1.5
Projek Lebuhraya Usahasama Berhad 11,000 11,000 3.7 3.7 0.8 0.7
Khazanah Nasional Berhad 11,300 9,000 3.8 3.0 0.8 0.6
Pengurusan Air SPV Berhad 9,760 8,025 3.3 2.7 0.7 0.5
Suria Strategic Energy Resources Sdn. Bhd. 6,951 7,276 2.4 2.4 0.5 0.5
GovCo Holdings Berhad 7,200 5,700 2.5 1.9 0.5 0.4
7RWDO RI PDMRU UHFLSLHQWV 84.4 84.3 17.6 16.7
1
End-June

financing rate. However, in certain situations, Turus Pesawat Sdn. Bhd., a Minister of Finance
entities with GG facilities may also require Incorporated (MOF Inc.) company that funds
funding from the Government to assist them aircraft procurement for Malaysia Airlines,
in debt servicing, working capital assistance was classified as a committed guarantee,
or cash flow support. Hence, GGs provided to in line with its restructuring exercise, which
such entities are categorised as FRPPLWWHG involves funding from the Government for debt
JXDUDQWHHV. The entities under this category repayment.
are provided guarantees under Act 96 or
financial undertakings under Section 141 of the In this regard, the Government will
Financial Procedure Act 1957 [Act 61]. continuously monitor the impact of the
COVID-19 crisis on all GG recipients in
As at end-June 2021, committed guarantees assessing the risks of the entities requiring
saw a slight increase to RM190.4 billion (12.6% assistance from the Government. Concurrently,
to GDP) from RM185.7 billion (13.1% to GDP) in the financial performance of the companies
2020, primarily due to issuances by DanaInfra under committed guarantees is closely
and Malaysia Rail Link Sdn. Bhd. in carrying monitored while ensuring implementation of
out existing transport infrastructure projects. a recovery plan to reduce the risk exposure to
With various movement restrictions enforced the Government. The entities will be removed
to contain the spread of COVID-19, there is an from the list under committed guarantees once
increased risk from GG recipients, particularly they no longer require financial assistance
those operating in the services sector. Hence, from the Government.
࣮ࢍ࢚ࣇࢥ Committed Guarantees,

2020 – 2021
ࣧࢵࢍࣣࢥ
ࢥ࣮࣎ࢸ࣮अ મય
2020 20211 2020 20211
DanaInfra Nasional Berhad 72,320 76,020 38.9 39.9

Prasarana Malaysia Berhad 38,914 38,914 21.0 20.4
Malaysia Rail Link Sdn. Bhd. 2
21,530 23,177 11.6 12.2
Urusharta Jamaah Sdn. Bhd. 20,683 21,097 11.1 11.1
Suria Strategic Energy Resources Sdn. Bhd. 2
6,951 7,276 3.7 3.8
GovCo Holdings Berhad 7,200 5,700 3.9 3.0
Jambatan Kedua Sdn. Bhd. 2
5,528 5,514 3.0 2.9
Turus Pesawat Sdn. Bhd. 5,310 5,310 2.9 2.8
MKD Kencana Sdn. Bhd. 3,500 4,500 1.9 2.4
SRC International Sdn. Bhd. 2,485 1,785 1.4 0.9
Sentuhan Budiman Sdn. Bhd. 800 750 0.4 0.4
TRX City Sdn. Bhd. 253 192 0.1 0.1
Assets Global Network Sdn. Bhd. 253 202 0.1 0.1
Total 100.0 100.0
1
End-June
2
Subject to exchange rate valuation
1
Section 14(1) Act 61: No guarantee involving a financial liability shall be binding upon the Federal Government, unless it is entered into with the
written authority of the Treasury or in accordance with federal law.

࣮ࢍ࢚ࣇࢥ 1MDB’s Debt,

1Malaysia Development as at end-June 2021
Berhad
ࣣ࣠ࢸ࢛࣎ࢸ࣠ࢍࣇ
࢛ࣔ࣍࣠ࣔ࣎ࢥ࣮࣎ ࣣࢍ࣮ࢥ ࣍ࢍ࣮ࣣࣳࢸ࣮अ
1MDB was established as a MOF Inc. company મય ࣠ࢥࣣࢸࣔࢡ મࣳࣧࢡ મࣣ࣍
࢚ࢸࣇࣇࢸࣔ࣎ય ࢚ࢸࣇࣇࢸࣔ࣎ય
in 2009 to spearhead strategic development
*RYHUQPHQW
in the country. However, its heavy reliance on
*XDUDQWHH
debt capital and poor corporate governance
May
led to cash flow complications beginning late- Sukuk 5.75 - 5.00
2039
2014 and subsequently requiring assistance
from the Government. As at end-June 2021, ,3,&02) ,QF
1MDB’s outstanding debt remained at May
1MDB Energy Ltd 5.99 1.75 7.271
RM32 billion. 2022
1MDB Energy October
5.75 1.75 7.271
(Langat) Ltd 2022
A total of RM18.2 billion worth of assets linked
to 1MDB has since been seized or recovered /HWWHU RI 6XSSRUW
and placed into the Assets Recovery Trust March
Global bond 4.44 3.00 12.461
Account under the custody of the Accountant 2023
General’s Department. The assets recovered
Total 32.00
include the seizure of physical assets and cash
as well as cash settlements by related parties 1
Subject to exchange rate valuation
with the United States Department of Justice,
settlement proceeds from financial institutions
and other parties such as audit firms, and cash
recovered from individuals and companies. In Inc., amounting to almost RM10 billion as
addition to the settlement proceeds paid to well as utilisation of the Trust Account. The
the Government, the former arranger of bond outstanding balance of the Trust Account,
issuances for 1MDB, Goldman Sachs, will assist which also earns placement profits (hibah),
and guarantee a minimum of USD1.4 billion stood at RM15.3 billion and is currently
asset recovery. sufficient to cover 1MDB’s obligations up to
2022. 1MDB’s overall outstanding financial
As of September 2021, the Government has obligations, composing of both principal
paid up to RM12.8 billion for 1MDB’s financial (RM32.2 billion) and interests or profits
commitments and debt servicing via loans on the debt (RM7.1 billion), amounted to
and advances from the Government or MOF RM39.3 billion.
1MDB’S Asset Recovery Progress
Jan - Sept
2019 2020 2021
RM1.47 RM12.68 RM4.08
billion billion billion

Other Liabilities PBLT, a wholly-owned company by MOF Inc.,

was established in 2005 to raise funding and
undertake infrastructure projects, including
Other financial liabilities of the Government
the construction of quarters, police stations,
include commitments under the PPP and PFI
training centres and other facilities for the
projects as well as financing raised by PBLT
police force. There has been no new funding
to develop infrastructure projects for the
Royal Malaysia Police. Projects implemented raised by PBLT since 2015, and the outstanding
under the PPP approach may involve a certain liabilities of PBLT were estimated at RM4 billion
fiscal cost to the Government, while some are as at end-June 2021.
fully funded by the private sector. As at end-
June 2021, one new project was added to the
list of PPP projects, namely electronic land Conclusion
management system (e-Tanah) for Perak with
a commitment of about RM249 million up to
Moving forward, risk disclosure by the
2032. The total outstanding cash commitments
Government will continue to be enhanced to
based on 98 PPP projects agreements from
provide a more comprehensive assessment of
2021-2047 were estimated at RM102.8 billion.
the Government’s exposure. With heightened
risk exposure stemming from the effects of
Liabilities under PFI projects are in the form of
financing provided by the Employees Provident the pandemic, increased oversight and scrutiny
Fund (EPF) and Retirement Fund Incorporated as well as the formulation of mitigation
(KWAP) to facilitate the implementation of measures is pertinent to cushion the impact
infrastructure development projects, including on Government’s fiscal position. As such,
construction and refurbishment of schools, the Government is embarking on reforms to
hospitals, universities and training centres as strengthen its fiscal discipline and enhance its
well as maintenance of government buildings. governance, particularly in the management of
As at end-June 2021, outstanding PFI liabilities state-owned enterprises, to minimise the risk
were estimated at RM46.1 billion. exposure from possible distressed companies.

ࢯࢸࢰࣣࣳࢥ 5.1. Outstanding Loan Guarantees ࢯࢸࢰࣣࣳࢥ 5.2. 0DWXULW\3URࢆOHRI/RDQ*XDUDQWHHV1
RM billion % GDP RM billion Share (%)

300 24 120
36.1% 35.4%
19.8%
250 20 100
200 16 80
150 12 60 16.7%
100 8 40 11.8%
50 4 20
0 0 0
2016 2017 2018 2019 2020 20211 < 5 years 6 - 10 years 11 - 15 years > 16 years
LOAN GUARANTEES
% GDP (RIGHT SCALE)
ࢯࢸࢰࣣࣳࢥ 5.3. Loan Guarantees by Segment1
2.2% 1.9%
6.8%
8.3%
INFRASTRUCTURE
SERVICES
INVESTMENT HOLDING RM300.4
54.2%
UTILITIES billion
FINANCIAL
26.6%
PLANTATION
ࢯࢸࢰࣣࣳࢥ 5.4. OXWVWDQGLQJ3332EOLJDWLRQVE\6HFWRU1
2.5%
3.8%
SOCIAL
31.2%
GENERAL ADMINISTRATION RM102.8
ECONOMIC billion 62.5%
SECURITY
30.8%
1
End-June 2021
Source: Ministry of Finance and Public Private Partnership Unit (UKAS), Prime Minister’s Department, Malaysia

Consolidated
Public Sector
197 ࢛ࣔ࣎ࣧࣔࣇࢸࢡࢍ࣮ࢥࢡ࢚࣠ࣳࣇࢸ࢛ࣧࢥ࢛࣮ࣣࣔ
Information Box - Government Finance Statistics
203 ࢰࢥ࣎ࢥࣣࢍࣇࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎
20 4 ࣮ࣧࢍ࣮ࢥࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ࣧ
20 4 ࣎ࣔ࣎ࢯࢸ࣎ࢍ࢛࣎ࢸࢍࣇ࢚࣠ࣳࣇࢸ࢛
࢛ࣣࣣࣔ࣠ࣔࢍ࣮ࢸࣔ࣎ࣧ
6ࢥ࢛࣮ࢸࣔ࣎ ࢛ࣔ࣎ࣧࣔࣇࢸࢡࢍ࣮ࢥࢡ ࢚࣠ࣳࣇࢸ࢛ ࣧࢥ࢛࣮ࣣࣔ
Consolidated Public Sector
Consolidated Public incur deficit due to sizeable development

expenditure (DE), reflecting significant capital
Sector investments to yield long-term social and
economic benefits. In contrast, NFPCs’ deficit
Malaysia’s consolidated public sector (CPS) reflects capital expenditure that is commercial
consists of general government units and in nature for income generation.
non-financial public corporations (NFPCs).
The purpose of reporting CPS financial In 2021, the CPS current surplus is anticipated
position is to estimate the overall size of to rise to RM61.8 billion (2020: RM55.9 billion),
the public sector, measure the impact of its mainly due to higher Federal Government
activities on the economy and identify the revenue. In addition, the consolidated DE of
sources of fiscal risks. The CPS framework the public sector is expected to rise by 19.3%
requires all intra-transfers and net lending to RM140.1 billion (2020: RM117.5 billion),
to be netted off from each public sector in line with higher investments to revive
unit to represent its financial position as a economic activities, particularly by the Federal
consolidated entity. Government and NFPCs. After taking into
account the COVID-19 Fund expenditure and
The assessment of the financial performance netting off intra-transactions between units,
of the general government differs from the the overall deficit of the public sector is
assessment of NFPCs. As a social-oriented anticipated to rise to RM117.4 billion or 7.7%
unit, general government balance tend to to GDP in 2021 (2020: RM99.5 billion; 7%).
࣮ࢍ࢚ࣇࢥ Consolidated Public Sector Financial Position,

2020 - 2022
࢛ࢵࢍ࣎ࢰࢥ
મય
2020 2 20223 2020 2 20223
Revenue 248,349 254,334 257,268 -1.7 2.4 1.2

Operating expenditure 263,556 258,830 271,947 -11.6 -1.8 5.1
Current balance -15,207 -4,496 -14,679 -66.6 -70.4 226.5
NFPCs current surplus 71,152 66,260 87,969 -44.6 -6.9 32.8
3XEOLF VHFWRU FXUUHQW EDODQFH 55,945
Development expenditure 117,460 140,095 155,478 -12.6 19.3 11.0
General government 55,621 66,158 80,766 -4.0 18.9 22.1
NFPCs 61,839 73,937 74,712 -19.2 19.6 1.0
COVID-19 Fund1 37,980 39,039 23,000 2.8 -41.1
2YHUDOO EDODQFH -99,495
WR *'3 -7.0 -7.7 -6.4
1
2
Revised estimate
3

,1)250$7,21 %2;
*RYHUQPHQW )LQDQFH 6WDWLVWLFV
,QWURGXFWLRQ
As the custodian of member countries’ fiscal statistics, the International Monetary Fund (IMF)
has published the Government Finance Statistics Manual 2014 (GFSM 2014). Based on the accrual
accounting standard, their methodology provides internationally comparable financial data to
support fiscal analyses. This include, for example, taxes proportion to total revenue when assessing
revenue sustainability or social assistance benefits when measuring fiscal injections into the
economy during a crisis. More importantly, GFSM 2014 facilitates countries to monitor and evaluate
the impact of fiscal policies on the economy as well as crafting effective policy responses.
GFSM 2014 is harmonised with other international statistical manuals in aligning the basic
concepts, classifications, and definitions to ensure consistency between macroeconomic and fiscal
data. Compared to the previous edition, GFSM 2014 also improves on comprehensiveness of data
presentation. In view of the importance of aligning to the guideline, the Malaysian Government
is in the process of adopting GFSM 2014 through the implementation of accrual accounting to
enhance the quality of public sector financial reporting.
ࢯࢸࢰࣣࣳࢥ1. Government Finance Statistic Manual 2014 and Other Related Macroeconomic Statistical System
Linkages between sectors of the economy,

economic processes of production,
income generation and distribution,
consumption of goods and services, System of
and accumulation of assets and National Accounts
liabilities. 2008 Summarises economic transactions
(2008 SNA) between residents of an economy and
nonresidents during a specific period.
Balance of
Payments and Shows the value of the financial
Monetary and
Financial Statistics International assets and liabilities stock
Manual and Investment positions between residents of
Assesses monetary Compilation Position Manual, an economy and non
conditions and the impact of Guide 2016 Sixth Edition
residents at a reporting date.
monetary policy on the money (BPM6), 2009
and capital markets.
Government
Finance Statistics
Manual 2014
(GFSM 2014) Measures the impact of economic
events on government finances, and the
impact of government activities on the
economy through taxation, expenditure,
borrowing and lending.
Note: For consistency of debt-related issues, GFSM 2014 is also supplemented with the Public Sector Debt Statistics: A Guide for Compilers and Users (PSDS
Guide) and the External Debt Statistics: Guide for Compilers and Users 2013 (2013 EDS Guide)
Source: GFSM 2014, IMF

&RYHUDJH RI *RYHUQPHQW )LQDQFH 6WDWLVWLFV
Government finance statistics reporting covers the public sector, comprising all units of the general
government and public corporations. This comprehensive coverage enables a government to
identify fiscal risks associated with all public sector entities. The capability of identifying the risks
may assist policymakers in managing internal and external shocks to the economy. While general
government data is important for international assessments of government financial performance,
interest in public corporations is also growing.
ࢯࢸࢰࣣࣳࢥMain Components of The Public Sector
Public Sector
General Public
Government Corporations
Central State Local Public Nonfinancial Public Financial

Government* Governments Governments Corporations Corporations
Note: *Central government consists of budgetary central government (BCG) and extrabudgetary funds. In the context of Malaysia, BCG is the Federal
Government while extrabudgetary funds are Federal Statutory Bodies.
Source: Government Finance Statistics Manual 2014, IMF
ࢯࢸࢰࣣࣳࢥGovernment Finance Statistics Manual 2014 Analytic Framework
Stocks Flows Stocks
Closing balance
Opening balance sheet Transactions Other economic flows
sheet
Revenue
Expenditure
Expense
= Net operating Change Change

Net worth Net worth
balance in net worth in net worth
Investment
Nonfinancial Nonfinancial Nonfinancial Nonfinancial
nonfinancial
assets assets assets assets
assets
= Net lending / Holding Other volume

net borrowing gains/losses changes
Acquisition of Financial Financial Financial

Financial assets
financial assets assets assets assets
Incurrence of
Liabilities Liabilities Liabilities Liabilities
liabilities

GFSM 2014 framework underlines the integrated balance sheet approach by incorporating all flows
and stock positions on an accrual basis while maintaining cash-flow data to evaluate the liquidity
of a government. The framework summarises the overall performance and financial position of the
general government or the public sector using balancing items measured within the framework,
such as the net operating balance, net lending/net borrowing, and the change in net worth. GFSM
2014 reporting also produces core statements, as shown in Figure 4.
ࢯࢸࢰࣣࣳࢥ4. Government Finance Statistics Manual 2014 Core Statements
Summary of transactions in a given Shows the influence on the financial

Integrated
reporting period (revenue, expense, Statement Statement of position:
change in stock of capital assets and of Flows and Transactions
Operations Stock Other economic flows
financing)
Position i. Holding gains/losses
ii. Other volume changes in assets/
liabilities
Shows the stock positions of assets, Shows the total amount of cash
liabilities, and net worth of public sector
Statement of Statement of generated or spent through operations
Total Changes Sources and and transactions in nonfinancial assets,
unit at the beginning and end of in Net Worth Uses of Cash
accounting period financial assets and liabilities (other than
cash)
8SGDWH RQ WKH $GRSWLRQ RI *)60 LQ 0DOD\VLD
GFSM 2014 implementation in Malaysia is a collaboration mainly between the Ministry of Finance
(MOF) and Accountant General’s Department of Malaysia (AG), supported by the Economic Planning
Unit, Department of Statistics of Malaysia and Bank Negara Malaysia. The Government has received
three series of technical assistance from the IMF, funded by the Government of Japan through
Japan International Cooperation Agency, to assist migration efforts from GFSM 1986 (cash basis) to
GFSM 2014 (accrual basis). The most recent technical assistance was held virtually in early 2021,
where efforts were focused on synchronising AG’s accrual accounting codes for Federal Government
to GFSM 2014 codes and improving data reporting for other public sector units.
Currently, the MOF submits annual fiscal data on a cash basis at budgetary central government
(BCG) level for GFSM 2014 data submission, while the progress of other public sector units for the
reporting is shown in Table 1.

࣮ࢍ࢚ࣇࢥ Status for Government Finance Statistics Manual 2014 Reporting: Malaysia
ࢸ࣮࣎ࣧࢸ࣮࣮ࣳࢸࣔ࣎ࢍࣇࣧࢥ࢛࣮ࣣࣔࣧ
Budgetary central government Ȏ 2ࢇFLDO*)60 Ȏ 6WDWLVWLFDOGLVFUHSDQF\ Ȏ 2ࢇFLDO*)60

(BCG) submission based on checking of BCG submission based on
– Federal Government cash data data for GFSM 2014 accrual data
Ȏ 'HYHORSPHQWRI reporting, simulated
Chart of Accounts using Federal
to map AG accrual Government’s 2018
accounting codes to accrual data
GFSM 2014 codes
Ȏ 'HYHORSPHQWRI%&*
data compilation
sheet for GFSM 2014
reporting
Extrabudgetary funds Ȏ 5HGHVLJQUHVWUXFWXUH Ȏ 5HࢉQHPHQWRIGDWD Ȏ 5HYLVLRQRI)HGHUDO
– Federal Statutory Bodies and adopt new data collection template Statutory Bodies’
collection template to Ȏ &KHFNLQJRI coverage to be more
align with GFSM 2014 consolidated data for comprehensive
FODVVLࢉFDWLRQ statistical discrepancy
State governments Ȏ (QJDJHPHQWZLWK
state governments
to improve data
collection as per GFSM
2014 requirements
Local governments Ȏ 5HGHVLJQUHVWUXFWXUH Ȏ 5HࢉQHPHQWRIGDWD
and adopt new data collection template
collection template to Ȏ &KHFNLQJRI
align with GFSM 2014 consolidated data for
FODVVLࢉFDWLRQ statistical discrepancy
Ȏ &RPSUHKHQVLYH
coverage of local
governments
Completed In progress Action required
Source: Ministry of Finance, Malaysia and Tillmann-Zorn, H. (2021). Report on The Government Finance Statistics Technical Assistance Mission (February 1 – March
31, 2021), IMF
Currently, Malaysia reports GFSM 2014 data at the BCG level based on Federal Government cash
data. Likewise, state governments are also adopting cash accounting, while Federal Statutory
Bodies, local governments and public corporations have adopted accrual-based reporting. The
implementation of accrual accounting at the Federal Government level will expedite the progress
of GFSM 2014 reporting. Moving forward, accrual accounting-related Acts are expected to be tabled
in Parliament by the end of 2021, followed by the publication of the Federal Government’s accrual
financial statements by the AG.
Depending on the availability and readiness of resources, countries have different timelines for
implementing GFSM 2014, as shown in Table 2. In supporting the full implementation of the
framework, important aspects for consideration include converting the existing cash-based to
accrual-based accounting system, adopting the GFSM 2014 classification structure for all economic
flows, and improving the data availability of the balance sheet.

࣮ࢍ࢚ࣇࢥ ASEAN Countries’ Reporting for Government Finance Statistics Manual 2014
࢚ࣳࢡࢰࢥ࣮ࢍࣣअ࢛ࢥ࣮ࣣ࣎ࢍࣇ ࢛ࢥ࣮ࣣ࣎ࢍࣇ ࢰࢥ࣎ࢥࣣࢍࣇ

࢛࣮ࣣࣔࣳ࣎ࢸࢥࣧ
ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎મ࢚࢛ࢰય ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎
1 Brunei NA NA NA
2 Cambodia / / NA
3 Indonesia NA / /
4 Lao PDR / NA NA
5 Malaysia /* NA NA
6 Myanmar / / /
7 Philippines / NA NA
8 Singapore / / /
9 Thailand / / /
10 Viet Nam NA NA NA
Note: *Submission is based on cash data since Malaysia is in the pre-transition period of implementing accrual accounting for BCG level (Federal Government)
NA: Not Available
Source: IMF Data - Government Finance Statistics, IMF
&RQFOXVLRQ
Overall, GFSM 2014 provides an inclusive and analytical framework towards enhancing transparency
and improving public sector financial reporting. Events such as episodes of economic and financial
crises, which have resulted in rising fiscal deficits and debt levels, highlight the importance of
comparable, reliable and timely financial statistics for early risk detection and formulation of
appropriate prevention measures. GFSM 2014 reporting is essential for fiscal analysis and plays an
important role in sound fiscal management and economic policies.
Implementation of accrual accounting benefits public sector financial reporting in terms of full
compliance with GFSM 2014. Thus, detailed information obtained from GFSM 2014 reporting allows
policymakers to effectively analyse and make decisions for sustainable policies for economic
development. Furthermore, it will support the enactment of the Fiscal Responsibility Act, which
aims to strengthen fiscal institutions through better governance, accountability and transparency
based on international best practices.
5HIHUHQFHV
International Monetary Fund. (2014). Government Finance Statistics Manual 2014.
Tillmann-Zorn, H. (2019). Report on The Government Finance Statistics Technical Assistance Mission
and Preceding Remote Support (March 4-8, 2019). International Monetary Fund.
Tillmann-Zorn, H. (2021). Report on The Government Finance Statistics Technical Assistance Mission
(February 1 – March 31, 2021). International Monetary Fund.
International Monetary Fund. (2021). IMF Data – Government Finance Statistics. Retrieved from
https://data.imf.org/?sk=89418059-d5c0-4330-8c41-dbc2d8f90f46&sId=1435762628665
International Federation of Accountants. (2021). Public Sector Financial Accountability Index – 2020
Financial Reporting Basis. Retrieved from https://www.ifac.org/what-we-do/global-impact-map/
accountability

General Government With revenue declining at a faster pace than

OE, the general government’s current surplus
is expected to fall to RM23.5 billion
The general government sector in Malaysia (2020: RM28.3 billion). In contrast, the
comprises the Federal Government, state consolidated DE is projected to rise by 22.3%
governments, local governments and Federal to RM68.5 billion, mainly due to higher Federal
Statutory Bodies1 that undertake principal Government DE. With the Federal Government’s
economic functions of the government. The additional spending from the COVID-19 Fund,
functions include providing non-commercial total expenditure is expected to increase
public goods and services, ensuring income to RM366.8 billion (2020: RM358.1 billion).
and wealth redistribution, and financing Consequently, after netting off intra-transfers
activities primarily through taxation or and net lending, the general government’s
transfers. The purpose of reporting the general overall deficit is expected to increase to
government’s financial position is to evaluate RM84 billion or 5.5% to GDP in 2021
its performance and the overall impact of (2020: RM65.6 billion; 4.6%).
government operations on the economy.
The general government’s overall deficit is
The consolidated general government primarily financed by Federal Government
revenue is expected to decline by 3.3% to borrowings and accumulated reserves. All state
RM282.9 billion in 2021, particularly due to governments2 and Federal Statutory Bodies
the lower revenue of the Federal Government may borrow only from or with the approval
and Federal Statutory Bodies. Similarly, the of the Federal Government, while local
consolidated operating expenditure (OE) is governments3 may borrow with the consent of
estimated to be lower by 1.8% at RM259.3 the respective state governments. Thus, the
billion, mainly attributed to the expenditure credit risk exposure of the general government
rationalisation by the Federal Government. is contained at the Federal Government level.
࣮ࢍ࢚ࣇࢥ Consolidated General Government Financial Position,

2020 – 2022
࢛ࢵࢍ࣎ࢰࢥ
ࣣ࣍࣍ࢸࣇࣇࢸࣔ࣎
મય
2020 2 20223 2020 2 20223
Revenue 292,427 282,859 294,347 -10.4 -3.3 4.1
Operating expenditure 264,090 259,316 272,317 -11.5 -1.8 5.0
&XUUHQWEDODQFH 23,543 22,030 b
Development expenditure 55,987 68,464 82,052 -3.7 22.3 19.8
COVID-19 Fund1 37,980 39,039 23,000 2.8 -41.1
2YHUDOOEDODQFH
WR*'3 -4.6 -5.5 -5.1 b b
1
2
Revised estimate
3
1
Federal Statutory Bodies are governed by Federal ministries and are subjected to respective acts to carry out specific Government functions in
various sectors, including education, health and agriculture. Revenues comprise mainly grants from the Federal Government.
2
Articles 111 and 112 of the Federal Constitution (except Sabah and Sarawak, which are allowed to borrow, upon the approval by the Central Bank).
3
Section 41 and 42 of the Local Government Act 1976.

roads in Selangor, and implementing water

State Governments supply projects in Pahang and Kedah. Hence,
the consolidated total expenditure of state
The state governments’ consolidated revenue governments is forecast to be higher by 14.4%
in 2021 is estimated to increase by 3% to to RM27.2 billion.
RM35.4 billion or 2.3% to GDP, of which
RM28.7 billion or 81.1% is from state-generated Overall, the consolidated state governments’
revenue (2020: RM27 billion; 78.5%), while the current balance is estimated at RM20.2 billion
balance is from Federal Government transfers or 57% of total consolidated revenue. The state
and grants. The main sources of their revenue governments’ overall balance is also estimated
are sales tax, petroleum royalties, investment to register a surplus of RM8.7 billion.
income, land premiums and land taxes. In
terms of state-generated revenue, Sarawak,
࣮ࢍ࢚ࣇࢥ Consolidated State Governments’
Sabah, Selangor, Terengganu and Johor are Financial Position,
the main contributors, accounting for 85.5% or 2020 - 2021
RM24.5 billion.
ࣣ࣍ ࣍ࢸࣇࣇࢸࣔ࣎ ࢛ࢵࢍ࣎ࢰࢥ
Tax revenue is estimated at RM9.5 billion or મય
26.7% of the total consolidated revenue. Direct
2020 2020
tax collection is projected at RM3.5 billion,
mainly tax on natural resources such as land, Revenue 34,414 35,435 2.1 3.0
mines and forestry. Indirect tax is expected to Operating
record RM6 billion or 63.3% of tax revenue, 14,003 15,221 13.2 8.7
expenditure
mainly attributed to sales tax4 on petroleum
&XUUHQW EDODQFH
products amounting to RM4.2 billion.
Gross development
9,782 11,996 -11.5 22.6
Non-tax revenue is expected to register expenditure
RM12.6 billion or 35.6% of the total Development
consolidated revenue. The main components 9,774 11,832 -11.3 21.1
Fund
are petroleum royalties (RM3.7 billion),
Water Supply
investment income (RM3.2 billion) and land 8 164 -78.4 1950.0
Fund
premiums (RM2.1 billion). Non-revenue receipts
of RM13.3 billion comprise mainly grants from Less: Loan recovery 666 476 -11.5 -28.5
the Federal Government. The grants include Net development
Capitation Grants, which is based on annual 9,116 11,520 -11.5 26.4
expenditure
population projection, operating grants under
2YHUDOO EDODQFH
the Concurrent List of the Federal Constitution
and service charges for the involvement of WR *'3 0.8 0.6
states’ employees in Federal development
projects. 1
Estimate
The consolidated state government OE

is projected to increase by 8.7% to
RM15.2 billion (2020: 13.2%; RM14 billion) Non-Financial Public
mainly due to higher supplies and services as
well as emoluments. Similarly, consolidated Corporations
DE is expected to increase by 22.6% to
RM12 billion (2020: -11.5%; RM9.8 billion). The inevitable economic downturn has forced
For the year, major development projects many economic sectors to adapt quickly
undertaken include developing rural areas to survive the crisis, particularly from the
in Sarawak, agriculture programmes and impact of the movement control restrictions
projects in Sabah, construction and upgrading to curb the spread of the pandemic. While
4
Sales tax in Sabah and Sarawak is under the jurisdiction of the respective states and is one of the main sources of revenue for the states as
stipulated in the Federal Constitution, Tenth Schedule, Part V, Additional Sources of Revenue Assigned to States of Sabah and Sarawak.

continuing to operate, the non-financial public to record better performance as providers

corporations (NFPCs) are also adapting to of essential services during the pandemic.
the new normal and better prepared to Meanwhile, the pandemic has led companies,
face future disruptions. As at end-2020, the in particular, in the transportation and utility
consolidated net assets of NFPCs were lower at subsectors to reformulate their business
RM457.4 billion (2019: RM515.1 billion) due to strategies through digitalisation. Consequently,
high impairment. Nevertheless, the availability NFPCs’ revenue is projected to register a
of quality assets and robust revenue streams slower growth of 4.4% to RM310.2 billion
enable the NFPCs to finance their investments or 20.5% to GDP as most NFPCs’ business
through retained earnings and borrowings. portfolio is not under telecommunications,
healthcare, and energy subsectors.
ࢯࢸࢰࣣࣳࢥ 6.1. NFPCs’ Assets and Liabilities,
End-2020 The NFPCs’ total expenditure for 2021 is
estimated to increase to RM343.6 billion
(2020: RM331 billion) or 22.7% to GDP in
RM billion
line with business expansion and investment
1,000
requirements. Of the total, current expenditure
is expected to account for 78.5%, while the
balance is for capital expenditure. Given the
800 Net assets:
RM457.4 bilion Government’s policy to support the economy
and gradually relax the MCO through the
600
National Recovery Plan, NFPCs will continue
their investment activities. Among the ongoing
RM977.1 bilion
projects include the Mass Rapid Transit
400 Putrajaya Line and Light Rail Transit Line 3.
RM519.7 billion
However, the MCO affects other projects such
Including debt: as the construction of the gas development
200 RM247.2 billion project in Sabah and Sarawak, hydropower
development, and digitalisation infrastructure.
With further widening of vaccination program
0 coverage and the gradual reopening of the
economy, NFPCs are expected to normalise
TOTAL ASSETS their operations and improve their financial
TOTAL LIABILITIES performance in 2022.
࣮ࢍ࢚ࣇࢥ Consolidated Non-Financial Public

Corporations1 Financial Position,
2020 – 2021
With some countries and sectors recovering ࣣ࣍ ࣍ࢸࣇࣇࢸࣔ࣎ ࢛ࢵࢍ࣎ࢰࢥ

faster than others, the NFPCs’ consolidated મય
ࢉQDQFLDO SRVLWLRQ LV H[SHFWHG WR UHFRUG D
2020 2 2020 2
modest current surplus of RM40.5 billion in
2021 (2020: RM28 billion), compared to the Revenue 297,146 310,154 -22.8 4.4
pre-crisis level averaging RM60 billion. Current
Nevertheless, the global economic, regulatory, 269,172 269,627 -18.4 0.2
expenditure
and political dynamics require NFPCs to incur a
&XUUHQW EDODQFH
VLJQLࢉFDQW FDSLWDO H[SHQGLWXUH RI 50 ELOOLRQ
+HQFH WKH RYHUDOO GHࢉFLW IRU LV SURMHFWHG Capital
61,839 73,937 -19.2 19.6
to slightly improve at RM33.4 billion expenditure
(2020: RM33.9 billion) or 2.2% to GDP.
2YHUDOO EDODQFH
Most economic sectors continue to grow at a WR *'3 -2.4 -2.2

slower pace due to Movement Control Order
(MCO). However, the telecommunication, 1
Refers to 26 major NFPCs
2
Estimate
healthcare and energy subsectors are expected Source: Ministry of Finance, Malaysia

࣮ࣧࢍ࣮ࢸ࣮ࣧࢸࣅ ࣅࢥࣿࢍ࣎ࢰࢍ࣎ ࢍࣿࢍ࣍ _ ࢚࣠ࣳࣇࢸ࢛ ࢯࢸ࣎ࢍ࢛࣎ࢥ ࣮ࣧࢍ࣮ࢸ࣮ࣧࢸ࢛ࣧ
Statistik Kewangan
Awam
Public Finance
Statistics
࣮ࢸ࣎ࣃࢍࣳࢍ࣎ ࢯࢸࣧࣅࢍࣇ ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 207

SENARAI STATISTIK KEWANGAN AWAM

LIST OF PUBLIC FINANCE STATISTICS
No. Jadual
Table No.
Kewangan Kerajaan Persekutuan 1.1

Federal Government Finance
Hasil Kerajaan Persekutuan 2.1

Perbelanjaan Mengurus Kerajaan Persekutuan mengikut Komponen 3.1

Federal Government Operating Expenditure by Component
Perbelanjaan Mengurus Kerajaan Persekutuan mengikut Sektor 3.2

Federal Government Operating Expenditure by Sector
Perbelanjaan Pembangunan Kerajaan Persekutuan mengikut Sektor 3.3

Federal Government Development Expenditure by Sector
Pinjaman Bersih Kerajaan Persekutuan 4.1

Federal Government Net Borrowings
Hutang Kerajaan Persekutuan mengikut Pemegang 4.2

Federal Government Debt by Holder
Hutang Luar 4.3

External Debt
Jaminan Pinjaman 5.1

Loan Guarantees
Kedudukan Kewangan Sektor Awam Disatukan 6.1

Consolidated Public Sector Financial Position
Kedudukan Kewangan Kerajaan Negeri Disatukan 6.2

Consolidated State Governments Financial Position
Kedudukan Kewangan Kerajaan Tempatan Disatukan 6.3

Consolidated Local Governments Financial Position
Kedudukan Kewangan Badan Berkanun Disatukan 6.4

Consolidated Statutory Bodies Financial Position
Kedudukan Kewangan Syarikat Awam Bukan Kewangan Disatukan 6.5

Consolidated Non-Financial Public Corporations Financial Position

1.1. KEWANGAN KERAJAAN PERSEKUTUAN )('(5$/ȭ*29(510(17ȭ),1$1&(

RM juta RM million
2018 2019 2020 20214 20225
Hasil
232,882 264,415 225,076 221,023 234,011
Revenue
% perubahan
5.7 13.5 -14.9 -1.8 5.9
% change
Perbelanjaan mengurus
230,960 263,343 224,600 219,600 233,500
Operating expenditure
% perubahan
6.1 14.0 -14.7 -2.2 6.3
% change
Baki semasa
1,922 1,072 476 1,423 511
Current balance
Perbelanjaan pembangunan kasar
56,095 54,173 51,360 62,000 75,600
Gross development expenditure
% perubahan
25.0 -3.4 -5.2 20.7 21.9
% change
Perbelanjaan langsung
54,405 52,058 49,331 60,814 73,617
Direct expenditure
% perubahan
28.7 -4.3 -5.2 22.2 22.6
% change
Pinjaman kasar
1,690 2,115 2,029 1,186 1,983
Gross lending
Tolak: Terimaan balik pinjaman
788 1,603 1,259 800 600
Less: Loan recovery
Perbelanjaan pembangunan bersih
55,307 52,570 50,101 61,200 75,000
Net development expenditure
% perubahan
28.5 -4.9 -4.7 22.2 22.5
% change
Kumpulan Wang COVID-191
– – 38,019 39,000 23,000
COVID-19 Fund1
Baki keseluruhan
-53,385 -51,498 -87,644 -98,777 -97,489
Overall balance
% KDNK
-3.7 -3.4 -6.2 -6.5 -6.0
% GDP
Baki primer2
-22,838 -18,565 -53,149 -59,777 -54,389
Primary balance2
% KDNK
-1.6 -1.2 -3.8 -3.9 -3.3
% GDP
Sumber pembiayaan
Sources of financing
Pinjaman bersih luar pesisir
-320 6,977 -331 1,601 –
Net offshore borrowings
Pinjaman bersih dalam negeri
54,427 44,755 86,921 98,800 –
Net domestic borrowings
Perubahan aset3
-722 -234 1,054 -1,624 –
Change in assets3
1
Kumpulan wang amanah khusus di bawah Akta Langkah-Langkah 1
A specific trust fund established under Temporary Measures for
Sementara bagi Pembiayaan Kerajaan (Penyakit Koronavirus 2019 Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020 to
(COVID-19)) 2020 untuk membiayai pakej rangsangan dan pelan finance economic stimulus packages and recovery plan
pemulihan ekonomi 2
Excluding debt service charges
2
Tidak termasuk bayaran khidmat hutang 3
(+) indicates drawdown of assets; (-) indicates accumulation of assets
3
(+) menunjukkan pengurangan aset; (-) menunjukkan pertambahan 4
Revised estimate
aset
5
4
Anggaran disemak
5
Anggaran belanjawan tidak termasuk langkah Bajet 2022

2.1. HASIL KERAJAAN PERSEKUTUAN )('(5$/ȭ*29(510(17ȭ5(9(18(

RM juta RM million
2018 % 2019 % 2020 % 20213 % 20224 %
Cukai langsung
130,034 (55.8) 134,723 (51.0) 112,511 (50.0) 120,048 (54.3) 127,334 (54.4)
Direct tax
% perubahan
12.1 3.6 -16.5 6.7 6.1
% change
Cukai pendapatan
122,486 (52.6) 126,507 (47.8) 104,884 (46.6) 111,811 (50.6) 118,722 (50.7)
Income taxes
Syarikat
66,474 (28.5) 63,751 (24.1) 50,065 (22.2) 60,588 (27.4) 65,499 (28.0)
Companies
Individu
32,605 (14.0) 38,680 (14.6) 38,953 (17.3) 36,400 (16.5) 37,510 (16.0)
Individual
Petroleum 20,082 (8.6) 20,783 (7.9) 12,772 (5.7) 11,500 (5.2) 12,400 (5.3)
Pegangan dan lain-lain
3,325 (1.4) 3,293 (1.2) 3,094 (1.4) 3,323 (1.5) 3,313 (1.4)
Withholding and others
Lain-lain 1
7,548 (3.2) 8,216 (3.2) 7,627 (3.4) 8,237 (3.7) 8,612 (3.7)
Others1
Cukai tidak langsung
44,026 (18.9) 45,843 (17.3) 41,887 (18.6) 41,782 (18.9) 44,040 (18.8)
Indirect tax
% perubahan
-28.6 4.1 -8.6 -0.3 5.4
% change
Duti eksport
1,725 (0.7) 1,126 (0.4) 746 (0.3) 1,406 (0.6) 1,610 (0.7)
Export duty
Petroleum 1,513 (0.6) 1,091 (0.4) 634 (0.3) 626 (0.3) 850 (0.4)
Lain-lain
212 (0.1) 35 (0.0) 112 (0.0) 780 (0.3) 760 (0.3)
Others
Duti import
2,897 (1.3) 2,733 (1.0) 2,346 (1.0) 2,330 (1.1) 2,500 (1.1)
Import duty
Duti eksais
10,779 (4.6) 10,511 (4.0) 9,855 (4.4) 9,760 (4.4) 10,200 (4.3)
Excise duties
Cukai jualan
3,971 (1.7) 15,385 (5.8) 14,767 (6.6) 14,241 (6.4) 14,560 (6.2)
Sales tax
Cukai perkhidmatan
1,473 (0.6) 12,283 (4.7) 12,006 (5.3) 12,287 (5.6) 13,000 (5.6)
Service tax
Cukai barang dan
perkhidmatan 20,236 (8.7) 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0)
Goods and services tax
Lain-lain
2,946 (1.3) 3,805 (1.4) 2,167 (1.0) 1,758 (0.8) 2,170 (0.9)
Others
Hasil bukan cukai 2
58,822 (25.3) 83,849 (31.7) 70,678 (31.4) 59,193 (26.8) 62,637 (26.8)
Non-tax revenue2
% perubahan
37.6 42.5 -15.7 -16.2 5.8
% change
Jumlah
232,882 (100.0) 264,415 (100.0) 225,076 (100.0) 221,023 (100.0) 234,011 (100.0)
Total
% perubahan
5.7 13.5 -14.9 -1.8 5.9
% change
1
Termasuk hasil daripada duti setem dan cukai keuntungan harta tanah 1
Include revenue from stamp duties and real property gains tax
2
Termasuk lesen, fi dan permit, bayaran perkhidmatan, sewaan, faedah 2
Include licences, fees and permits, service fees, rental, interest and return
dan pulangan pelaburan, denda dan penalti, hasil daripada Wilayah on investment, fines and penalties, revenue from the Federal Territories
Persekutuan dan terimaan bukan hasil and non-revenue receipts
3
Anggaran disemak 3
Revised estimate
4
Anggaran belanjawan tidak termasuk langkah Bajet 2022 4
212 ࣮ࢸ࣎ࣃࢍࣳࢍ࣎ ࢯࢸࣧࣅࢍࣇ ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

3.1. PERBELANJAAN MENGURUS KERAJAAN )('(5$/ȭ*29(510(17ȭ23(5$7,1*

PERSEKUTUAN MENGIKUT KOMPONEN (;3(1',785(ȭ%<ȭ&20321(17
RM juta RM million
2018 % 2019 % 2020 % 20213 % 20224 %
Emolumen
79,989 (34.6) 80,534 (30.6) 82,996 (36.9) 84,529 (38.5) 86,510 (37.0)
Emoluments
Bayaran persaraan
25,177 (10.9) 25,894 (9.8) 27,533 (12.3) 27,581 (12.6) 28,067 (12.0)
Retirement charges
Bayaran khidmat hutang
30,547 (13.2) 32,933 (12.5) 34,495 (15.4) 39,000 (17.8) 43,100 (18.5)
Debt service charges
Dalam negeri
29,891 (12.9) 32,239 (12.2) 33,770 (15.0) 38,104 (17.4) 42,316 (18.1)
Domestic
Luar negeri
656 (0.3) 694 (0.3) 725 (0.4) 896 (0.4) 784 (0.4)
External
Pemberian dan serahan
kepada kerajaan negeri 7,605 (3.3) 7,574 (2.9) 7,669 (3.4) 7,745 (3.5) 7,927 (3.4)
Grants and transfers to state
governments
Pemberian di bawah
Perlembagaan 5,495 (2.4) 5,619 (2.1) 5,739 (2.5) 5,705 (2.6) 5,887 (2.5)
Constitutional grants
Pemberian/pindahan lain1
2,110 (0.9) 1,955 (0.7) 1,930 (0.9) 2,040 (0.9) 2,040 (0.9)
Other grants/transfers1
Perkhidmatan dan bekalan
35,283 (15.3) 31,507 (12.0) 29,323 (13.0) 23,265 (10.6) 30,367 (13.0)
Supplies and services
Subsidi dan bantuan sosial
Subsidies and social 27,516 (11.9) 23,901 (9.1) 19,769 (8.8) 16,701 (7.6) 17,352 (7.4)
assistance
Pembelian aset
447 (0.2) 770 (0.3) 631 (0.3) 415 (0.2) 533 (0.2)
Asset acquisition
Bayaran balik dan hapus
kira 883 (0.4) 893 (0.3) 654 (0.3) 511 (0.2) 375 (0.2)
Refunds and write-offs
Pemberian kepada badan
berkanun 13,763 (6.0) 13,780 (5.2) 10,291 (4.6) 13,190 (6.0) 14,066 (6.0)
Grants to statutory bodies
Lain-lain2
9,750 (4.2) 45,557 (17.3) 11,239 (5.0) 6,663 (3.0) 5,203 (2.3)
Others2
Jumlah
230,960 (100.0) 263,343 (100.0) 224,600 (100.0) 219,600 (100.0) 233,500 (100.0)
Total
% perubahan
6.1 14.0 -14.7 -2.2 6.3
% change
1
Termasuk pemberian/pindahan selain pemberian yang ditetapkan di 1
Include grants/transfers other than those listed in the Federal Constitution
bawah Perlembagaan Persekutuan 2
Include grants to Statutory Funds, public corporations, international
2
Termasuk pemberian kepada Kumpulan Wang Terkanun, syarikat organisations, insurance claims and gratuities as well as others
awam, pertubuhan antarabangsa, tuntutan insurans dan 3
Revised estimate
pampasan serta lain-lain
4
3
Anggaran disemak
4

3.2. PERBELANJAAN MENGURUS KERAJAAN 3.2. )('(5$/ȭ*29(510(17ȭ23(5$7,1*

PERSEKUTUAN MENGIKUT SEKTOR (;3(1',785(ȭ%<ȭSECTOR
RM juta RM million
2018 2019 2020 20213 20224
Ekonomi
14,064 15,605 16,737 17,992 18,799
Economic
Pertanian
4,618 3,457 2,506 3,020 3,184
Agriculture
Tenaga dan kemudahan awam
297 243 642 263 440
Energy and public utilities
Perdagangan dan perindustrian
2,703 2,936 1,891 3,633 3,956
Trade and industry
Pengangkutan
3,448 5,638 5,914 6,316 6,529
Transport
Perhubungan
96 87 11 89 88
Communications
Alam sekitar
70 135 131 121 125
Environment
Lain-lain
2,832 3,109 5,642 4,550 4,477
Others
Sosial
90,968 93,494 94,740 87,548 95,967
Social
Pendidikan dan latihan
56,233 56,546 56,508 56,331 59,361
Education and training
Kesihatan
26,435 27,873 27,133 23,113 28,319
Health
Perumahan
13 10 14 0.4 0.4
Housing
Lain-lain
8,287 9,065 11,085 8,104 8,287
Others
Keselamatan
27,229 23,429 24,790 24,197 25,158
Security
Pertahanan
16,283 10,633 11,032 10,715 11,098
Defence
Keselamatan dalam negeri
10,946 12,796 13,758 13,482 14,060
Internal security
Pentadbiran am1
17,597 16,901 13,675 12,827 12,319
General administration1
Lain-lain2
81,102 113,914 74,658 77,036 81,257
Others2
Jumlah
230,960 263,343 224,600 219,600 233,500
Total
% perubahan
6.1 14.0 -14.7 -2.2 6.3
% change
1
Termasuk perkhidmatan am, bayaran balik dan bayaran ganti serta 1
Includes general services, refund and reimbursement, and foreign affairs
perkhidmatan luar negeri services
2
Termasuk bayaran khidmat hutang, bayaran persaraan dan bayaran 2
Include debt service charges, retirement charges and transfer payments
pindahan 3
Revised estimate
3
Anggaran disemak 4
4

3.3. PERBELANJAAN PEMBANGUNAN KERAJAAN )('(5$/ȭ*29(510(17'(9(/230(17

PERSEKUTUAN MENGIKUT SEKTOR EXPENDITURE %<6(&725
RM juta RM million
2018 % 2019 % 2020 % 20213 % 20224 %
Ekonomi
36,103 (64.4) 31,300 (57.8) 28,712 (55.9) 33,767 (54.5) 40,205 (53.2)
Economic
% perubahan
49.3 -13.3 -8.3 17.6 19.1
% change
Pertanian
2,133 (3.8) 2,314 (4.3) 2,003 (3.9) 2,815 (4.5) 2,860 (3.8)
Agriculture
Tenaga dan kemudahan awam1
2,254 (4.0) 2,760 (5.1) 2,315 (4.5) 2,976 (4.8) 3,167 (4.2)
Energy and public utilities1
Perdagangan dan
perindustrian 2,512 (4.5) 3,054 (5.6) 2,576 (5.0) 2,365 (3.8) 2,087 (2.8)
Trade and industry
Pengangkutan
17,004 (30.3) 13,750 (25.4) 12,779 (24.9) 13,014 (21.0) 15,509 (20.5)
Transport
Perhubungan
68 (0.1) 71 (0.1) 75 (0.1) 182 (0.3) 975 (1.3)
Communications
Alam sekitar
1,665 (3.0) 1,723 (3.2) 1,324 (2.6) 1,537 (2.5) 2,059 (2.7)
Environment
Lain-lain
10,467 (18.7) 7,628 (14.1) 7,640 (14.9) 10,878 (17.6) 13,548 (17.9)
Others
Sosial
12,873 (22.9) 14,484 (26.7) 13,827 (27.0) 17,347 (28.0) 22,671 (30.0)
Social
% perubahan
3.6 12.5 -4.5 25.5 30.7
% change
Pendidikan dan latihan
6,505 (11.6) 7,629 (14.1) 6,737 (13.1) 8,118 (13.1) 11,955 (15.8)
Education and training
Kesihatan
1,773 (3.2) 1,827 (3.4) 3,983 (7.8) 4,397 (7.1) 4,457 (5.9)
Health
Perumahan
1,285 (2.3) 2,126 (3.9) 1,015 (2.0) 1,582 (2.6) 1,771 (2.3)
Housing
Lain-lain
3,310 (5.8) 2,902 (5.3) 2,092 (4.1) 3,250 (5.2) 4,488 (6.0)
Others
Keselamatan
4,929 (8.8) 5,614 (10.4) 5,785 (11.2) 7,317 (11.8) 8,970 (11.9)
Security
% perubahan
-7.6 13.9 3.0 26.5 22.6
% change
Pertahanan
3,262 (5.8) 2,931 (5.4) 3,197 (6.2) 4,478 (7.2) 5,415 (7.2)
Defence
Keselamatan dalam negeri
1,667 (3.0) 2,683 (5.0) 2,588 (5.0) 2,839 (4.6) 3,555 (4.7)
Internal security
Pentadbiran am2
2,190 (3.9) 2,775 (5.1) 3,036 (5.9) 3,569 (5.7) 3,754 (4.9)
General administration2
% perubahan
-25.5 26.7 9.4 17.6 5.2
% change
Jumlah
56,095 (100.0) 54,173 (100.0) 51,360 (100.0) 62,000 (100.0) 75,600 (100.0)
Total
% perubahan
25.0 -3.4 -5.2 20.7 21.9
% change
1
Sebahagian besarnya bekalan elektrik dan air 1
Mainly electricity and water supply
2
Termasuk perkhidmatan am, penyenggaraan dan pengubahsuaian 2
Includes general services, maintenance and renovations
3
Anggaran disemak 3
Revised estimate
4

4.1. PINJAMAN BERSIH )('(5$/*29(510(17

KERAJAAN PERSEKUTUAN NET BORROWINGS
RM juta RM million
2017 2018 2019 2020 20212

40,732 54,427 44,755 86,921 98,800
Sekuriti Kerajaan Malaysia
Malaysian Government Securities
Terbitan kasar
60,416 51,030 57,200 73,000 83,000
Gross issuances
Bayaran balik prinsipal
53,166 35,327 43,412 30,715 38,700
Principal repayments
Bersih
7,250 15,703 13,788 42,285 44,300
Net
Terbitan Pelaburan Kerajaan Malaysia
Malaysian Government Investment Issues
Terbitan kasar
53,500 64,305 58,500 76,4661 77,000
Gross issuances
20,000 27,500 24,000 40,000 29,000
Bersih
33,500 36,805 34,500 36,466 48,000
Net
Bil perbendaharaan
Treasury bills
Terbitan kasar
15,269 16,229 11,778 31,601 45,500
Gross issuances
15,287 14,310 13,711 20,731 33,000
Bersih
-18 1,919 -1,933 10,870 12,500
Net
Sukuk Perumahan Kerajaan
Government Housing Sukuk
Terbitan kasar
– – – – –
Gross issuances
– – 1,600 2,700 6,000
Bersih
– – -1,600 -2,700 -6,000
Net
Pinjaman bersih luar pesisir
-342 -320 6,977 -331 1,601
Net offshore borrowings
Projek
Project
Terimaan
63 36 134 – –
Receipts
405 356 327 331 310
Bersih
-342 -320 -193 -331 -310
Net
Pasaran
Market
Terimaan
– – 7,170 – 5,277
Receipts
– – – – 3,366
Bersih
– – 7,170 – 1,911
Net
Jumlah
40,390 54,107 51,732 86,590 100,401
Total
1
Termasuk Sukuk Prihatin 1
Include Sukuk Prihatin
2
Anggaran 2
Estimate

4.2. HUTANG KERAJAAN PERSEKUTUAN )('(5$/ȭ*29(510(17'(%7

MENGIKUT PEMEGANG %<+2/'(5
RM juta RM million
2017 2018 2019 2020 20216
Hutang dalam negeri

665,572 719,545 764,233 851,284 924,784
Domestic debt
Bil perbendaharaan
4,500 6,500 4,500 15,500 34,000
Treasury bills
Institusi perbankan
855 2,481 2,989 8,656 21,939
Pemilik asing
3,331 3,733 1,511 6,045 10,905
Foreign holders
Lain-lain
314 286 - 799 1,156
Others
Terbitan Pelaburan Kerajaan Malaysia
268,000 304,300 338,800 375,2665 391,2665
0DOD\VLDQ*RYHUQPHQW,QYHVWPHQW,VVXHV
Kumpulan Wang Simpanan Pekerja
91,350 105,281 118,676 116,826 115,803
Employees Provident Fund
Kumpulan Wang Persaraan (Diperbadankan)
11,163 8,968 9,273 9,576 8,612
Retirement Fund (Incorporated)
Syarikat insurans
9,395 10,861 11,858 14,326 15,176
Insurance companies
Bank Negara Malaysia 4,040 3,569 1,549 4,255 5,813
Institusi perbankan
100,760 125,432 138,829 161,357 170,422
Institusi kewangan pembangunan
17,638 17,869 17,459 15,250 16,357
Development financial institutions
Pemilik asing
18,496 15,893 21,095 24,816 30,786
Foreign holders
Lain-lain1
15,158 16,427 20,061 28,860 28,297
Others1
Sekuriti Kerajaan Malaysia
364,672 380,345 394,133 436,418 475,418
0DOD\VLDQ*RYHUQPHQW6HFXULWLHV
90,969 99,791 100,876 90,493 102,545
10,729 14,559 14,742 14,597 18,105
Syarikat insurans
21,544 24,153 23,002 25,970 28,283
Insurance companies
Bank Negara Malaysia 4,616 6,715 2,680 14,407 11,415
Institusi perbankan
55,995 75,074 68,926 86,663 99,708
Institusi kewangan pembangunan
796 1,256 530 780 720
Development financial institutions
Pemilik asing
164,399 146,152 163,888 177,329 192,135
Foreign holders
Lain-lain2
15,624 12,645 19,489 26,179 22,507
Others2
Sukuk Perumahan Kerajaan
28,400 28,400 26,800 24,100 24,100
Government Housing Sukuk

4.2. HUTANG KERAJAAN PERSEKUTUAN )('(5$/ȭ*29(510(17'(%7

MENGIKUT PEMEGANG (samb.) %<+2/'(5cont’d.)
RM juta RM million
2017 2018 2019 2020 20216
Pinjaman luar pesisir

21,265 21,504 28,765 28,276 33,604
Offshore borrowings
Pinjaman pasaran3
15,580 15,907 23,347 23,055 28,703
0DUNHWORDQV3
1,107 1,130 1,118 1,085 1,122
820 837 828 803 831
Syarikat insurans
227 232 230 223 264
Insurance companies
Bank Negara Malaysia 41 42 41 40 41
Institusi perbankan
1,566 1,599 1,582 1,534 1,749
Pemilik asing
10,883 11,111 18,603 18,453 23,514
Foreign holders
Lain-lain4
936 956 945 917 1,182
Others4
Pinjaman projek
5,685 5,597 5,418 5,221 4,901
Project loans
Pemilik asing
Foreign holders 5,685 5,597 5,418 5,221 4,901
Jumlah
686,837 741,049 792,998 879,560 958,388
Total
1
Termasuk institusi kewangan bukan bank; badan berkanun; syarikat 1
Include non-bank financial institutions; statutory bodies; nominees
penamaan dan amanah; syarikat kerjasama dan butiran and trustee companies; co-operatives and unclassified items
yang tidak dapat diklasifikasikan 2
Include securities placed by institutional investors at the central bank
2
Termasuk sekuriti yang disimpan oleh pelabur institusi dalam bank pusat 3
Holders were identified at time of issuance
3
Pegangan dikenal pasti semasa terbitan 4
Include non-bank financial institutions; individuals; non-financial
4
Termasuk institusi kewangan bukan bank; orang perseorangan; syarikat corporations and unidentified sectors
bukan kewangan dan sektor yang tidak dapat dikenal pasti 5
Include Sukuk Prihatin
5
Termasuk Sukuk Prihatin 6
End-June 2021
6
Akhir Jun 2021

4.3. HUTANG LUAR 4.3. EXTERNAL DEBT

RM juta RM million
2017 2018 2019 2020 20216
Pinjaman luar pesisir1

508,583 565,800 563,643 559,560 589,479
Offshore borrowings1
Hutang jangka sederhana dan panjang2
321,094 331,973 348,184 360,997 382,627
0HGLXPDQGORQJWHUPGHEW2
Sektor awam
132,464 138,238 129,007 143,934 164,736
Public sector
Kerajaan Persekutuan
16,567 16,708 24,021 23,672 28,415
Federal Government
Syarikat awam3
115,897 121,531 104,986 120,262 136,321
Public corporations3
Sektor swasta
188,630 193,735 219,178 217,063 217,890
Private sector
Sektor perbankan
46,284 47,980 56,039 55,484 54,729
Banking sector
Sektor bukan perbankan
142,346 145,754 163,139 161,579 163,161
Non-bank sector
Hutang jangka pendek 4
187,489 233,827 215,459 198,563 206,853
Short-term debt4
Sektor perbankan
172,199 204,759 199,729 182,078 187,587
Banking sector
Sektor bukan perbankan
15,290 29,068 15,730 16,485 19,266
Non-bank sector
Pemegangan sekuriti hutang dalam
denominasi ringgit oleh bukan
pemastautin 207,389 180,224 201,015 220,103 244,828
Non-resident holdings of ringgit-
denominated debt securities
Hutang jangka sederhana dan panjang 2
196,074 169,158 193,270 210,811 233,045
0HGLXPDQGORQJWHUPGHEW2
182,855 158,406 182,151 200,060 220,612
Federal Government
Lain-lain
13,220 10,752 11,119 10,751 12,434
Others
Hutang jangka pendek4
11,314 11,066 7,745 9,292 11,782
Short-term debt4
3,331 3,733 1,511 6,045 10,905
Federal Government
Lain-lain
7,983 7,333 6,234 3,247 878
Others
Deposit bukan pemastautin
92,025 98,109 103,014 94,497 93,542
Non-resident deposits
Lain-lain5
77,221 78,896 79,768 83,983 92,816
Others5
Jumlah
885,218 923,029 947,440 958,144 1,020,665
Total
1
Bersamaan dengan hutang luar negeri di bawah definisi terdahulu 1
Equivalent to the external debt as previously defined, comprise mainly foreign
terutamanya merangkumi hutang mata wang asing diperoleh dan nota currency loan raised, and bonds as well as notes issued offshore
serta bon terbitan luar pesisir 2
Medium- and long-term debt refers to debt with tenure of more than one year
2
Hutang jangka sederhana dan panjang merujuk kepada hutang yang 3
Includes both guaranteed and non-guaranteed debt of public corporations
bertempoh matang melebihi satu tahun
4
Short-term debt refers to debt with tenure of one year and below
3
Terdiri daripada hutang syarikat awam yang dijamin dan tidak dijamin
5
Comprise trade credits, IMF allocation of SDRs and miscellaneous
4
Hutang jangka pendek merupakan hutang yang bertempoh matang
setahun atau kurang 6
End-June 2021
5
Merangkumi kredit perdagangan, peruntukan SDR IMF dan lain-lain Note: Total may not add up due to rounding
6
Akhir Jun 2021 Source: Bank Negara Malaysia
Nota: Angka tidak semestinya terjumlah disebabkan pembundaran
Sumber: Bank Negara Malaysia

5.1. JAMINAN PINJAMAN1 5.1. LOAN GUARANTEES1

RM juta RM million
2016 2017 2018 2019 2020
1Malaysia Development Berhad 5,000 5,000 5,000 5,000 5,000

Assets Global Network Sdn. Bhd. 658 556 455 354 253
Bank Pembangunan Malaysia Berhad 6,518 6,400 6,350 5,900 4,250
DanaInfra Nasional Berhad 29,700 42,180 52,740 63,820 72,320
GovCo Holdings Berhad 4,600 8,800 7,300 7,200 7,200
Jambatan Kedua Sdn. Bhd. 7,395 6,318 5,751 5,648 5,528
Johor Corporation 3,000 2,600 2,600 1,800 1,800
K.L. International Airport Berhad 291 181 94 – -
Khazanah Nasional Berhad 18,000 17,000 15,000 12,500 11,300
Lembaga Kemajuan Tanah Persekutuan 4,150 4,100 4,000 3,900 3,850
Lembaga Pembiayaan Perumahan Sektor Awam 4,000 11,500 17,750 22,450 30,150
Malaysia Debt Ventures Berhad 1,200 900 930 1,200 1,000
Malaysia Rail Link Sdn. Bhd. – 14,493 18,862 18,506 21,530
Malaysian Industrial Development Finance
5 – – – -
Berhad
MKD Kencana Sdn. Bhd. – 1,000 3,500 3,500 3,500
Pelabuhan Tanjung Pelepas Sdn. Bhd. 1,925 1,840 1,995 1,910 325
Penerbangan Malaysia Berhad 661 530 469 388 259
Pengurusan Air SPV Berhad 12,710 13,110 13,310 12,210 9,760
Perbadanan Kemajuan Negeri Pahang 200 120 120 60 60
Perbadanan PR1MA Malaysia – 3,718 5,000 5,000 5,000
Perbadanan Tabung Pendidikan Tinggi Nasional 40,350 40,200 37,700 37,300 39,800
Prasarana Malaysia Berhad 18,700 26,614 31,414 32,264 38,914
Projek Lebuhraya Usahasama Berhad 11,000 11,000 11,000 11,000 11,000
Sabah Electricity Sdn. Bhd. 8 2 – – -
Sarawak Hidro Sdn. Bhd. 1,000 1,000 1,000 1,000 1,000
Senai Airport Terminal Services Sdn. Bhd. 330 330 330 330 330
Sentuhan Budiman Sdn. Bhd. 650 800 800 800 800
Small Medium Enterprise Development Bank
2,310 2,600 2,600 2,500 1,850
Malaysia Berhad
SRC International Sdn. Bhd. 4,000 3,900 3,600 3,485 2,485
Suria Strategic Energy Resources Sdn. Bhd. – 2,940 7,925 6,708 6,951
Syarikat Perumahan Negara Berhad – – 530 530 530
Tenaga Nasional Berhad 2,866 2,555 2,547 2,434 2,366
TRX City Sdn. Bhd. 699 595 485 372 253
Turus Pesawat Sdn. Bhd. 5,310 5,310 5,310 5,310 5,310
Jumlah
187,234 238,191 266,468 275,379 294,675
Total
% KDNK
15.0 17.4 18.4 18.2 20.8
% of GDP
1
Jaminan yang diluluskan di bawah Akta Jaminan Pinjaman (Pertubuhan 1
Guarantees approved under the Loans Guarantee (Bodies Corporate)
Perbadanan) 1965 Act 1965
Nota: Angka tidak semestinya terjumlah disebabkan pembundaran Note: Total may not add up due to rounding

6.1. KEDUDUKAN KEWANGAN 6.1. CONSOLIDATED PUBLIC SECTOR

SEKTOR AWAM DISATUKAN FINANCIAL POSITION
RM juta RM million
2018 2019 2020 20212 20223
Hasil
240,976 252,671 248,349 254,334 257,268
Revenue
265,987 298,243 263,556 258,830 271,947
Baki semasa
-25,011 -45,572 -15,207 -4,496 -14,679
Current balance
Baki semasa syarikat awam bukan kewangan

128,174 128,318 71,152 66,260 87,969
Non-financial public corporations’ current balance
Jumlah baki semasa sektor awam

103,163 82,746 55,945 61,764 73,290
Total public sector current balance
Perbelanjaan pembangunan
144,494 134,454 117,460 140,095 155,478
Development expenditure
Kerajaan am
63,672 57,936 55,621 66,158 80,766
General government
Syarikat awam bukan kewangan

80,822 76,518 61,839 73,937 74,712
Non-financial public corporations
Kumpulan Wang COVID-191

37,980 39,039 23,000
&29,')XQG1
Baki keseluruhan
-41,331 -51,708 -99,495 -117,370 -105,188
Overall balance
% KDNK
-2.9 -3.4 -7.0 -7.7 -6.4
% GDP
1
Kumpulan wang amanah khusus di bawah Akta Langkah-Langkah 1
A specific trust fund established under Temporary Measures for Government
Sementara bagi Pembiayaan Kerajaan (Penyakit Koronavirus 2019 (COVID-19)) Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020 to finance economic
2020 untuk membiayai pakej rangsangan dan pelan pemulihan ekonomi stimulus packages and recovery plan
2
Anggaran disemak 2
Revised estimate
3

6.2. KEDUDUKAN KEWANGAN &2162/,'$7('67$7(ȭ*29(510(176

KERAJAAN NEGERI DISATUKAN FINANCIAL POSITION
RM juta RM million
2017 2018 2019 2020 20214
Hasil1
21,767 30,260 33,692 34,414 35,435
Revenue1
% perubahan
9.4 39.0 11.3 2.1 3.0
% change
Janaan negeri
16,994 23,560 26,304 27,026 28,723
State-generated
Pemberian Persekutuan
4,724 6,649 7,329 7,332 6,660
Federal grants
Bayaran balik Persekutuan
49 51 59 56 52
Federal reimbursements
Perbelanjaan mengurus2
12,303 11,870 12,373 14,003 15,221
Operating expenditure2
% perubahan
19.8 -3.5 4.2 13.2 8.7
% change
Baki semasa
9,463 18,390 21,319 20,411 20,214
Current balance
9,456 13,098 11,051 9,782 11,996
% perubahan
6.5 38.5 -15.6 -11.5 22.6
% change
Kumpulan Wang Pembangunan
9,344 13,070 11,014 9,774 11,832
Development Fund
Kumpulan Wang Bekalan Air
113 28 37 8 164
Water Supply Fund
Tolak: Terimaan balik pinjaman
280 292 752 666 476
Less: Loan recovery
9,177 12,806 10,299 9,116 11,520
Baki keseluruhan
286 5,584 11,020 11,295 8,694
Overall balance
Sumber pembiayaan
Pinjaman bersih Persekutuan
6,779 6,572 6,971 6,717 6,764
Net Federal loans
Perubahan aset3
-7,065 -12,156 -17,991 -18,012 -15,458
Change in assets3
1
Hasil meliputi pemberian pembangunan dan bayaran balik daripada 1
Revenue includes development grants and reimbursements from the
Kerajaan Persekutuan yang sebelum ini diletakkan di bawah sumber Federal Government, which was previously treated as a source of financing,
pembiayaan, selaras dengan System of National Accounts (SNA) serta consistent with the System of National Accounts (SNA) as well as conventions
prinsip perangkaan kewangan awam in public finance statistics
2
Tidak termasuk caruman kepada Kumpulan Wang Pembangunan dan 2
Excludes contribution to Development Fund and Water Supply Fund but
Kumpulan Wang Bekalan Air tetapi termasuk perbelanjaan berulang includes recurrent expenditure from Water Supply Fund
dalam Kumpulan Wang Bekalan Air 3
Positive indicates drawdown of assets; negative indicates accumulation of
3
Positif menunjukkan pengurangan aset; negatif menunjukkan assets
pertambahan aset 4
Estimate
4
Anggaran

6.3. KEDUDUKAN KEWANGAN &2162/,'$7('/2&$/*29(510(176

KERAJAAN TEMPATAN DISATUKAN FINANCIAL POSITION
RM juta RM million
2017 2018 2019 2020 20212
Hasil
10,845 11,716 12,211 12,433 10,933
Revenue
% perubahan
6.2 8.0 4.2 1.8 -12.1
% change
Janaan Kerajaan Tempatan
9,802 10,537 10,531 10,872 9,974
Local Government-generated
Pemberian Persekutuan dan negeri
1,043 1,179 1,680 1,561 959
Federal and state grants
7,989 8,513 9,450 8,677 8,946
% perubahan
1.5 6.6 11.0 -8.2 3.1
% change
Baki semasa
2,856 3,203 2,761 3,756 1,987
Current balance
2,215 2,141 2,550 1,855 1,250
% perubahan
11.0 -3.3 19.1 -27.3 -32.6
% change
Baki keseluruhan
641 1,062 211 1,901 737
Overall balance
Sumber pembiayaan
Pinjaman bersih Persekutuan
-8 -2 -3 -3 0
Net Federal loans
Pinjaman bersih negeri
60 4 -12 -10 -15
Net state loans
Perubahan aset1
-693 -1,064 -196 -1,888 -722
Change in assets1
1
(+) menunjukkan pengurangan aset; (-) menunjukkan pertambahan aset 1
2
Anggaran 2
Estimate

6.4. KEDUDUKAN KEWANGAN &2162/,'$7('67$78725<ȭ%2',(61

BADAN BERKANUN DISATUKAN1 FINANCIAL POSITION
RM juta RM million
2017 2018 2019 2020 20214
Hasil
47,660 46,989 49,073 47,029 45,274
Revenue
% perubahan
13.4 -1.4 4.4 -4.2 -3.7
% change
Janaan badan berkanun

18,274 19,320 19,986 20,016 19,604
Statutory bodies-generated
Pemberian Persekutuan dan negeri2

29,386 27,669 29,087 27,013 25,670
Federal and state grants2
37,727 37,094 35,623 36,013 37,442
% perubahan
9.0 -1.7 -4.0 1.1 4.0
% change
Baki semasa
9,933 9,895 13,450 11,016 7,832
Current balance
3,725 2,596 2,472 1,891 2,666
% perubahan
18.4 -30.3 -4.8 -23.5 41.0
% change
Baki keseluruhan
6,208 7,299 10,978 9,125 5,166
Overall balance
Sumber pembiayaan

8,976 8,376 9,756 14,787 7,128
Perubahan aset3
-15,184 -15,675 -20,734 -23,912 -12,294
Change in assets3
1
Badan berkanun merujuk kepada badan korporat yang ditubuhkan 1
Statutory bodies refer to any corporate body that is established under
di bawah peruntukan undang-undang Persekutuan. Data meliputi 88 Federal law. The data covers 88 statutory bodies
badan berkanun 2
Refers to both operating and development grants
2
Merujuk kepada pemberian mengurus dan pembangunan 3
3
(+) menunjukkan pengurangan aset; (-) menunjukkan pertambahan 4
Estimate
aset
4
Anggaran

6.5. KEDUDUKAN KEWANGAN SYARIKAT AWAM 6.5. CONSOLIDATED NON-FINANCIAL PUBLIC

BUKAN KEWANGAN DISATUKAN1 CORPORATIONS1),1$1&,$/ȭ326,7,21
RM juta RM million
2017 2018 2019 2020 20212
Hasil
329,145 395,182 385,070 297,146 310,154
Revenue
Perbelanjaan semasa
262,763 317,366 329,859 269,172 269,627
Current expenditure
Baki semasa
66,382 77,816 55,211 27,974 40,527
Current balance
Perbelanjaan modal
82,580 80,822 76,518 61,839 73,937
Capital expenditure
Baki keseluruhan
-16,198 -3,006 -21,307 -33,865 -33,410
Overall balance
1
Mulai tahun 2021, merujuk kepada 26 syarikat awam bukan kewangan 1
From 2021, refering to 26 major non-financial public corporations (NFPCs)
(SABK) utama meliputi Axiata Group Bhd., Bintulu Port Holdings Bhd., comprising Axiata Group Bhd., Bintulu Port Holdings Bhd., Boustead
Boustead Holdings Bhd., Cement Industries (Sabah) Sdn. Bhd., IJN Holdings Bhd., Cement Industries (Sabah) Sdn. Bhd., IJN Holdings Sdn. Bhd.,
Holdings Sdn. Bhd., Indah Water Konsortium Sdn. Bhd., Keretapi Tanah Indah Water Konsortium Sdn. Bhd., Keretapi Tanah Melayu Bhd., Kulim
Melayu Bhd., Kulim (Malaysia) Bhd., Malaysia Airports Holdings Bhd., (Malaysia) Bhd., Malaysia Airport Holdings Bhd., Malaysian Aviation Group
Malaysian Aviation Group Bhd., Malaysia Digital Economy Corporation Bhd., Malaysia Digital Economy Corporation Sdn. Bhd., Mass Rapid Transit
Sdn. Bhd., Mass Rapid Transit Corporation Sdn. Bhd., MIMOS Bhd., Corporation Sdn. Bhd., MIMOS Bhd., Penerbangan Malaysia Bhd., Petroliam
Penerbangan Malaysia Bhd., Petroliam Nasional Bhd. (PETRONAS), Nasional Bhd. (PETRONAS), Prasarana Malaysia Bhd., Rakyat Berjaya Sdn.
Prasarana Malaysia Bhd., Rakyat Berjaya Sdn. Bhd., Sabah Energy Bhd., Sabah Energy Corporation Sdn. Bhd., Sabah Ports Sdn. Bhd., Syarikat
Corporation Sdn. Bhd., Sabah Ports Sdn. Bhd., Syarikat Perumahan Perumahan Negara Bhd., Syarikat Sesco Bhd., Telekom Malaysia Bhd.,
Negara Bhd., Syarikat Sesco Bhd., Telekom Malaysia Bhd., Tenaga Tenaga Nasional Bhd., TH Plantation Bhd., UDA Holdings Bhd. dan UEM
Nasional Bhd., TH Plantation Bhd., UDA Holdings Bhd. dan UEM Group Group Bhd.
Bhd. 2
Estimate
2
Anggaran Note: The NFPCs are public sector agencies undertaking the sale of
Nota: SABK merupakan agensi sektor awam yang menjual barang dan industrial and commercial goods and services. They include Government-
perkhidmatan industri dan komersial. SABK termasuk syarikat yang owned and/or Government-controlled companies. Major NFPCs refers to
dimiliki dan/atau dikuasai oleh Kerajaan. SABK utama merujuk kepada ownership more than 50% of total equity, minimum annual sales of at least
pemilikan melebihi 50% jumlah ekuiti, hasil jualan tahunan minimum RM100 million and/or of significant impact to the economy
RM100 juta dan/atau mempunyai impak yang besar kepada ekonomi

Treasury Memorandum
on the Federal
Government Revenue
Estimates For 2022
ࢯࢥࢡࢥࣣࢍࣇ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࣣࢥࣾࢥ࣎ࣳࢥ ࢥ࣮ࣧࢸ࣍ࢍ࣮ࢥࣧ
TREASURY MEMORANDUM ON THE FEDERAL GOVERNMENT

REVENUE ESTIMATES FOR 2022
1. This Memorandum explains the revenue estimates of the Federal Government for 2022 and
the revised estimates for 2021. The Memorandum is prepared in accordance with Article 99 of the
Federal Constitution.
2. The Federal Government revenue for 2022 is estimated at RM234 billion. Detailed actual
collection for 2020 as well as revised estimates for 2021 and revenue estimates for 2022 are in
section Summary and Details of Federal Government Revenue Estimates.
Classification of Revenue
3. The Federal Government revenue is classified into four main categories, namely Tax Revenue,
Non-Tax Revenue, Non-Revenue Receipts and Revenue from Federal Territories.
4. Tax Revenue is classified into Direct Tax Revenue and Indirect Tax Revenue. Direct Tax
Revenue are as follows:
a. Income tax (individual1, companies, petroleum, withholding, cooperative, and others); and
b. Other direct tax (stamp duty, real property gains tax (RPGT), Labuan business activity tax,
and others).
5. Indirect Tax Revenue includes:
a. Export duty;
b. Import duty;
c. Excise duties;
d. Sales Tax and Service Tax (SST);
e. Tourism Tax; and
f. Others.
6. Non-Tax Revenue consists of:
a. licences and permits including all charges imposed on the granting of rights to
individuals, corporations, businesses and other enterprises, among others are in the form
of petroleum royalty and motor vehicle licences for purpose of control or regulation;
b. service fees which include receipts from services rendered by the Federal Government to
the public;
c. proceeds from sales of goods including receipts from the sales of Government’s physical
assets such as land, building and office equipment as well as the sale of miscellaneous
goods;
1
Consists of salary and non-salary

ࢯࢥࢡࢥࣣࢍࣇ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࣣࢥࣾࢥ࣎ࣳࢥ ࢥ࣮ࣧࢸ࣍ࢍ࣮ࢥࣧ
d. rentals including rentals on land, building, vehicle, machinery and miscellaneous

equipment;
e. interest and return on investment which include proceed from divestment, dividends
from shares, interest income and profit payment on financing granted by the Federal
Government;
f. fines and penalties including out-of-court settlement fees and forfeitures;
g. contributions and compensations received locally and from abroad; and
h. oil and gas exploration income from Malaysia – Thailand Joint Authority (MTJA).
7. Non-Revenue Receipts include:
a. refund of expenditures which include payments from previous years, refund of salaries
arising from resignations, refund of training expenses, refund of trust funds and
unclaimed monies; and
b. transfer of funds between ministries or departments for services rendered between

government agencies and reimbursements of the government’s contributions under the
Employees Provident Fund scheme and contributions from government departments,
statutory bodies or government-owned companies.
8. Revenue from Federal Territories consists of tax and non-tax revenue including receipts
from licences and permits, land premiums and quit rent, sales of assets, rentals, service fees and
entertainment duties.
Treasury
Ministry of Finance, Malaysia
29 October 2021

Ringkasan Anggaran Hasil
Summary of Federal
Government Revenue
Estimates
ࢍ࣎ࢰࢰࢍࣣࢍ࣎ ࢵࢍࣧࢸࣇ ࣅࢥࣣࢍࣃࢍࢍ࣎ ࣠ࢥࣣࣧࢥࣅ࣮ࣳࣳࢍ࣎ _ ࢯࢥࢡࢥࣣࢍࣇ ࢰࣔࣾࢥࣣ࣎࣍ࢥ࣮࣎ ࣣࢥࣾࢥ࣎ࣳࢥ ࢥ࣮ࣧࢸ࣍ࢍ࣮ࢥࣧ
RINGKASAN ANGGARAN HASIL KERAJAAN PERSEKUTUAN

SUMMARY OF FEDERAL GOVERNMENT REVENUE ESTIMATES
KOD HASIL PENDAPATAN ANGGARAN ANGGARAN
(Revenue Code) 2020 DISEMAK 2022
(2020 Revenue) 2021 (2022 Estimate)
(2021 Revised
Estimate)
RM RM RM
60000 HASIL CUKAI 154,397,967,931 161,829,801,000 171,374,072,000

TAX REVENUE
61000 Cukai Langsung 112,511,151,064 120,048,100,000 127,333,574,000

Direct Tax
61100 Cukai Pendapatan 104,884,438,671 111,810,818,000 118,722,108,000

Income Tax
61900 Cukai Langsung yang Lain 7,626,712,393 8,237,282,000 8,611,466,000

Other Direct Tax
62000- Jumlah Keseluruhan Cukai Tidak 41,886,816,867 41,781,701,000 44,040,498,000

64000 Langsung
Overall Total Indirect Tax
62000 Cukai Tidak Langsung 41,818,865,544 41,781,290,000 44,039,998,000

Indirect Tax
62100 Duti Eksport 746,141,231 1,405,672,000 1,610,000,000

Export Duty
62200 Duti Import 2,346,001,584 2,330,354,000 2,500,000,000

Import Duty
62300 Duti Eksais Terhadap Barangan 4,719,320,979 3,639,645,000 3,803,625,000

Tempatan
Excise Duty on Local Goods
62400 Cukai Jualan Tempatan 6,493,793,033 5,306,264,000 5,425,127,000

Sales Tax (Local)
62500 Cukai Jualan Import 8,272,887,002 8,934,734,000 9,134,872,000

Sales Tax (Import)
62600 Cukai Perkhidmatan 12,006,145,761 12,287,000,000 13,000,000,000

Service Tax
62700 Levi 389,338,968 957,000,000 770,000,000

Levy

Import
Excise Duty on Imported Goods


(2021 Revised
Estimate)
RM RM RM
62900 Pelbagai Cukai Tidak Langsung 1,708,826,590 800,000,000 1,400,000,000

Miscellaneous Indirect Tax
64000 Cukai Pelancongan 67,951,323 411,000 500,000

Tourism Tax
70000 HASIL BUKAN CUKAI 62,046,603,183 51,488,445,000 55,876,146,000

NON-TAX REVENUE
71000 Lesen, Bayaran Pendaftaran dan Permit 10,931,339,962 10,251,697,000 10,958,096,000

Licences, Registration Fees and Permits
71100 Bayaran untuk Kenderaan 3,637,372,248 3,041,128,000 3,245,767,000

Fees for Vehicles
71200 Bayaran untuk Radio, Televisyen 90,424 - -

dan Alat-Alat Elektrik
Fees for Radio, Television and
Electric Equipments
71300 Bayaran untuk Pendaftaran 2,213,638,213 1,882,744,000 2,011,721,000

Individu
Individual Registration Fees
71400 Bayaran untuk Berniaga 4,669,962,092 5,222,303,000 5,590,374,000

Fees for Business
71500 Bayaran Penerbangan 18,380 - -

Aviation Fees
71900 Pelbagai Bayaran 410,258,605 105,522,000 110,234,000

Miscellaneous Payments
72000 Bayaran Perkhidmatan 1,565,731,699 1,683,113,000 1,751,756,000

Service Fees
72100 Bayaran Ikhtisas 688,102,017 722,153,000 751,605,000

Professional Fees
72200 Bayaran Pelajaran 33,247,780 46,073,000 47,950,000

Education Fees
72300 Bayaran Iklan 20,336,182 11,197,000 11,656,000

Advertisement Fees
72400 Bayaran Perkhidmatan 824,045,720 903,690,000 940,545,000

Service Fees


(2021 Revised
Estimate)
RM RM RM
73000 Perolehan daripada Jualan Barang 60,805,300 69,035,000 74,121,000

Proceeds from Sales of Goods
73100 Jualan Barang-Barang Cetak 14,857,160 13,807,000 14,826,000

Sales of Printed Materials
73200 Jualan Barang-Barang Stor 3,819,800 1,382,000 1,482,000

Sales of Store Goods
73300 Jualan Harta Benda Kecuali 16,231,956 22,282,000 23,923,000

Yang Diperolehi dari Peruntukan
Pembangunan
(Termasuk Tanah, Bangunan,
Kemudahan dan Alat Kelengkapan)
Sales of Property Other Than
That Procured Under Development
Allocation (Include Land, Building
and Equipment)
73900 Pelbagai Jualan 25,896,384 31,564,000 33,890,000

Miscellaneous Sales
74000 Sewaan 180,319,974 259,170,000 342,232,000

Rental
74100 Sewa Tanah 76,836,822 118,236,000 156,130,000
Land Rental
74200 Sewa Bangunan 94,823,500 130,404,000 172,197,000

Building Rental
74300 Sewa Kenderaan 1,463,889 3,452,000 4,559,000

Vehicle Rental
74400 Sewa Jentera 17,630 17,000 22,000

Rental for Machinery
74500 Sewa Alat Kelengkapan Pejabat, 11,348 13,000 18,000

Perabot, dan Kelengkapan
5HQWDORI2IÀFH)DFLOLWLHVDQG
Furniture
74600 Sewa Alat Kelengkapan 385,215 4,000 5,000

Elektronik
Rental of Electronic Equipment

Elektrik
Rental of Electrical Equipment


(2021 Revised
Estimate)
RM RM RM
74800 Sewa Alat Kelengkapan Penyiaran 125,174 97,000 128,000

dan Perhubungan
Rental of Broadcasting and
Telecommunication Equipment
74900 Sewa Pelbagai 6,654,179 6,944,000 9,169,000

Miscellaneous Rental
75000 Faedah dan Pulangan Pelaburan 46,067,499,372 35,989,007,000 39,457,483,000

Interest and Return on Investments
75100 Pulangan dari Pelaburan dalam 3,800,067,692 4,130,711,000 5,104,194,000
Perusahaan Kewangan
Return on Investment from
Financial Institutions

Perusahaan Bukan Kewangan
Non-Financial Institutions
75300 Pulangan dari Pelaburan Luar 8,706,740 1,134,000 1,134,000

Negeri
Overseas
75400 Pulangan dari Pelaburan-Pelaburan 7,135,687,114 4,796,224,000 8,283,045,000

dalam Negeri yang Lain
Return from Other Internal
Investments
76000 Denda dan Penalti 1,421,579,016 1,557,330,000 1,573,850,000

Fines and Penalties
77000 Sumbangan dan Bayaran Ganti daripada 177,791,986 8,248,000 10,937,000

Luar Negeri dan Sumbangan Tempatan
Contributions and Compensation From
Overseas and Local Contributions
77100 Bayaran Ganti Bagi Perkhidmatan 31 - -

dari Luar Negeri
Compensation For Services from
Overseas
77400 Sumbangan Tempatan 177,791,955 8,248,000 10,937,000

Local Contributions
78000 Pendapatan daripada Aktiviti Carigali 1,641,535,874 1,670,845,000 1,707,671,000

Minyak dan Gas MTJA
Income from Exploration of Oil and Gas
MTJA


(2021 Revised
Estimate)
RM RM RM
78100 Pendapatan daripada Operasi 1,641,535,874 1,670,845,000 1,707,671,000

Petroleum Pihak Berkuasa Bersama
Malaysia-Thailand (MTJA)
Income from Petroleum Operation
Malaysia-Thailand Joint Authority
(MTJA)
80000 TERIMAAN BUKAN HASIL 7,953,680,648 7,005,000,000 6,030,830,000

NON-REVENUE RECEIPTS
81000 Pulangan Balik Perbelanjaan 2,634,409,058 1,228,943,000 1,015,233,000

Refunds of Expenditure
81100 Pulangan Balik Perbelanjaan Am 2,142,781,134 1,168,461,000 963,160,000

Refunds of General Expenditure
81200 Dapatan Balik Wang Amanah 176,278,285 115,000 100,000

Trust Fund Refunded
81300 Dapatan Balik Wang-Wang Tak 315,349,639 60,367,000 51,973,000

Dituntut
Unclaimed Monies Refunded
82000 Terimaan daripada Agensi Kerajaan 5,319,231,740 5,776,057,000 5,015,597,000

Receipts from Government Agencies
82100 Terimaan untuk Perkhidmatan 2,242,831 3,693,000 3,587,000

Receipts For Services
82200 Bayaran Balik 3,531,510 8,230,000 7,995,000

Repayments
82300 Pemberian dan Caruman 5,250,000,000 5,760,000,000 5,000,000,000

Transfers and Contributions
82400 Jualan 88,481 65,000 63,000

Sales
82500 Pelbagai Terimaan 63,368,918 4,069,000 3,952,000

Miscellaneous Receipts
86000 Terimaan Pelarasan 39,850 - -

Adjustment Proceeds

Adjustment Proceeds


(2021 Revised
Estimate)
RM RM RM
90000 HASIL DARIPADA WILAYAH PERSEKUTUAN 676,695,480 699,754,000 730,382,000

REVENUE FROM FEDERAL TERRITORIES
91000 Hasil Cukai daripada Wilayah 617,784,952 631,144,000 658,727,000

Persekutuan
Tax Revenue from Federal Territories
91100 Cukai Langsung 577,611,112 628,285,000 656,163,000

Direct Tax
91200 Cukai Tidak Langsung 40,173,840 2,859,000 2,564,000

Indirect Tax
92000 Hasil Bukan Cukai daripada Wilayah 58,910,528 68,610,000 71,655,000

Persekutuan
Non-Tax Revenue from Federal Territories
92100 Lesen, Bayaran Pendaftaran dan 4,614,246 4,953,000 5,173,000

Permit
Licences, Registration Fees and
Permits
92200 Perkhidmatan dan Bayaran 52,648,701 61,207,000 63,923,000

Perkhidmatan
Services and Services Fee
92400 Sewaan 50,297 26,000 27,000

Rentals
92900 Pelbagai Hasil Bukan Cukai 1,597,284 2,424,000 2,532,000

Miscellaneous Non-Tax Revenue
JUMLAH HASIL KERAJAAN PERSEKUTUAN 225,074,947,242 221,023,000,000 234,011,430,000

TOTAL FEDERAL GOVERNMENT REVENUE

Perincian Anggaran Hasil

Details of Federal
Government Revenue
Estimates

PERINCIAN ANGGARAN HASIL KERAJAAN PERSEKUTUAN

DETAILS OF FEDERAL GOVERNMENT REVENUE ESTIMATES
(2021 Revised
Estimate)
RM RM RM
60000 HASIL CUKAI 154,397,967,931 161,829,801,000 171,374,072,000

TAX REVENUE
61000 Cukai Langsung 112,511,151,064 120,048,100,000 127,333,574,000

Direct Tax

Income Tax

Individu
Individual Income Tax

Syarikat
Companies Income Tax

Petroleum
Petroleum Income Tax
61104 Cukai Pendapatan 58,645,873 154,372,000 163,548,000

Koperasi
Cooperatives Income Tax
61105 Cukai Pegangan 2,992,934,878 3,114,709,000 3,105,000,000

Withholding Tax
Lain-Lain 42,742,746 54,193,000 44,560,000

Others
61900 Cukai Langsung yang Lain 7,626,712,393 8,237,282,000 8,611,466,000

Other Direct Tax
61912 Duti Setem 5,505,763,486 6,200,336,000 6,549,630,000

Stamp Duty
61913 Cukai Keuntungan Harta 1,687,478,506 1,785,981,000 1,794,810,000

Tanah
Real Property Gains Tax
Lain-Lain 433,470,401 250,965,000 267,026,000

Others


(2021 Revised
Estimate)
RM RM RM
HASIL CUKAI -(Samb.)

TAX REVENUE -(Cont.)
62000- Jumlah Keseluruhan Cukai Tidak 41,886,816,867 41,781,701,000 44,040,498,000

64000 Langsung
Overall Total Indirect Tax
62000 Cukai Tidak Langsung 41,818,865,544 41,781,290,000 44,039,998,000

Indirect Tax
62100 Duti Eksport 746,141,231 1,405,672,000 1,610,000,000

Export Duty
62111 Minyak Kelapa Sawit 86,690,738 700,000,000 650,000,000

Mentah
Crude Palm Oil
62114 Petroleum Mentah 634,005,875 626,075,000 850,000,000

Crude Petroleum
Lain-Lain 25,444,618 79,597,000 110,000,000

Others
62200 Duti Import 2,346,001,584 2,330,354,000 2,500,000,000

Import Duty
62209 Motokar CBU 404,203,639 374,311,000 401,560,000

CBU Motor Vehicles
62210 Motokar CKD 21,560,487 24,944,000 26,761,000

CKD Motor Vehicles
62212 Alat-Alat Ganti 280,287,658 328,539,000 352,455,000

Kenderaan Bermotor
Motor Spare Parts
62213 Minuman Keras 74,342,681 65,007,000 69,739,000

Alcoholic Beverage
62227 Mesin dan Alat-Alat Ganti 236,355,057 262,490,000 281,598,000

Machines and Spare Parts
62230 Besi Keluli dalam Bentuk 112,815,566 150,823,000 161,803,000

Struktur
Structured Steel


(2021 Revised
Estimate)
RM RM RM

Cukai Tidak Langsung -(Samb.)

Indirect Tax -(Cont.)
62236 Resin dan Bahan Plastik 130,818,659 139,457,000 149,609,000

Resins and Plastic
Materials
62250 Bahan Keluli untuk 40,297,811 38,865,000 41,694,000

Binaan
Steel for Construction
62289 Barangan Buatan Logam 87,573,386 87,061,000 93,399,000

Metal Products
Lain-Lain 957,746,640 858,857,000 921,382,000

Others

Tempatan
62310 Bir daripada Malt 1,619,172,733 1,245,105,000 1,301,201,000

Beer from Malt
62312 Rokok Buatan Tempatan 37,404,000 24,444,000 25,545,000

Locally Manufactured
Cigarettes
62318 Kenderaan Penumpang 2,372,507,607 1,884,866,000 1,969,786,000

Passenger Vehicles
Lain-Lain 690,236,639 485,230,000 507,093,000

Others
62400 Cukai Jualan Tempatan 6,493,793,033 5,306,264,000 5,425,127,000

Sales Tax (Local)
62408 Kenderaan Bermotor 465,790,323 9,029,000 9,233,000

Penumpang
Passenger Motor Vehicle
62411 Mesin dan Alat-Alat Ganti 326,596,446 339,990,000 347,606,000

Machine and Spare Parts


(2021 Revised
Estimate)
RM RM RM


62415 Barang Buatan Plastik 510,019,232 612,352,000 626,069,000

Plastic Products
62418 Barang-Barang Elektrik 445,654,305 534,735,000 546,713,000

Electrical Goods
62499 Barang-Barang 1,119,403,190 1,044,043,000 1,067,430,000

Perkilangan Dalam Negeri
yang Lain
Other Domestic
Manufacturing Goods
Lain-lain 3,626,329,537 2,766,115,000 2,828,076,000

Others
62500 Cukai Jualan Import 8,272,887,002 8,934,734,000 9,134,872,000

Sales Tax (Import)
62508 Motokar CBU 263,619,742 214,124,000 218,921,000

CBU Motor Vehicles
62514 Pakaian 332,592,699 306,790,000 313,662,000

Clothes
62522 Makanan Dalam Tin dan 387,164,923 464,690,000 475,099,000

Lain-Lain
Canned Food and Others
62535 Mesin dan Alat-Alat Ganti 1,127,166,856 1,385,790,000 1,416,832,000

Machine and Spare Parts
62599 Cukai Jualan Import yang 1,822,092,608 2,153,968,000 2,202,217,000

Lain
Other Imported Sales Tax
Lain-lain 4,340,250,174 4,409,372,000 4,508,141,000

Others


(2021 Revised
Estimate)
RM RM RM


62600 Cukai Perkhidmatan 12,006,145,761 12,287,000,000 13,000,000,000

Service Tax
62603 Bilik Menginap/ Tempat 252,252,356 12,920,000 13,670,000

Tidur
Accommodation
62610 Penyediaan Polisi 1,389,526,938 1,492,147,000 1,588,735,000

Insurans
Insurance Policy
62611 Perkhidmatan 1,433,061,606 1,480,058,000 1,575,944,000

Telekomunikasi
Telecommunication
Service
62627 Perkhidmatan Pengurusan 1,220,887,818 1,237,211,000 1,289,005,000

Management Services
62633 Makanan & Minuman 1,402,162,926 1,245,606,000 1,318,741,000

Food & Drink
62639 Teknologi Maklumat 893,956,543 999,544,000 1,057,547,000

Information Technology
Lain-lain 5,414,297,574 5,819,514,000 6,156,358,000

Others
62700 Levi 389,338,968 957,000,000 770,000,000

Levy
62800 Duti Eksais terhadap Barangan 5,136,410,396 6,120,621,000 6,396,374,000

Import
Excise Duty on Imported
Goods
62802 Rokok Yang Diimport 2,748,499,335 3,272,824,000 3,420,276,000

Imported Cigarettes


(2021 Revised
Estimate)
RM RM RM


62803 Minuman Keras yang 86,034,575 86,166,000 90,048,000

Diimport
Imported Alcoholic
Beverage
62806 Motokar CBU 2,023,243,139 2,080,422,000 2,174,152,000

CBU Motor Vehicles
Lain-lain 278,633,347 681,209,000 711,898,000

Others
62900 Pelbagai Cukai Tidak Langsung 1,708,826,590 800,000,000 1,400,000,000

Miscellaneous Indirect Tax
64000 Cukai Pelancongan 67,951,323 411,000 500,000

Tourism Tax
70000 HASIL BUKAN CUKAI 62,046,603,183 51,488,445,000 55,876,146,000

NON-TAX REVENUE
71000 Lesen, Bayaran Pendaftaran dan Permit 10,931,339,962 10,251,697,000 10,958,096,000

Licences, Registration Fees and Permits
71100 Bayaran untuk Kenderaan 3,637,372,248 3,041,128,000 3,245,767,000

Fees for Vehicles
71105 Lesen Kenderaan 2,935,664,238 2,804,000,000 2,998,120,000

Bermotor
Motor Vehicles Licences
Lain-lain 701,708,010 237,128,000 247,647,000

Others
71200 Bayaran untuk Radio, Televisyen 90,424 - -

dan Alat-Alat Elektrik
Fees for Radio, Television and
Electric Equipments


(2021 Revised
Estimate)
RM RM RM
HASIL BUKAN CUKAI -(Samb.)

NON-TAX REVENUE -(Cont.)
Lesen, Bayaran Pendaftaran dan Permit -(Samb.)

Licences, Registration Fees and Permits (Cont.)
71300 Bayaran untuk Pendaftaran Individu 2,213,638,213 1,882,744,000 2,011,721,000

Individual Registration Fees
71309 Levi Pekerja Asing 1,798,104,483 1,748,001,000 1,871,026,000

Levy on Foreign Workers
Lain-lain 415,533,730 134,743,000 140,695,000

Others
71400 Bayaran untuk Berniaga 4,669,962,092 5,222,303,000 5,590,374,000

Fees for Business
71405 Royalti Petroleum 4,201,966,927 3,698,000,000 3,998,000,000

Petroleum Royalty
Lain-lain 467,995,165 1,524,303,000 1,592,374,000

Others
71500 Bayaran Penerbangan 18,380 - -

Aviation Fees
71900 Pelbagai Bayaran 410,258,605 105,522,000 110,234,000

Miscellaneous Payments
72000 Bayaran Perkhidmatan 1,565,731,699 1,683,113,000 1,751,756,000

Service Fees
72100 Bayaran Ikhtisas 688,102,017 722,153,000 751,605,000

Professional Fees
72200 Bayaran Pelajaran 33,247,780 46,073,000 47,950,000

Education Fees
72300 Bayaran Iklan 20,336,182 11,197,000 11,656,000

Advertisement Fees


(2021 Revised
Estimate)
RM RM RM

Bayaran Perkhidmatan -(Samb.)

Service Fees -(Cont.)
72400 Bayaran Perkhidmatan 824,045,720 903,690,000 940,545,000

Service Fees
73000 Perolehan daripada Jualan Barang 60,805,300 69,035,000 74,121,000

Proceeds from Sales of Goods
73100 Jualan Barang-Barang Cetak 14,857,160 13,807,000 14,826,000

Sales of Printed Materials
73200 Jualan Barang-Barang Stor 3,819,800 1,382,000 1,482,000

Sales of Store Goods
73300 Jualan Harta Benda Kecuali 16,231,956 22,282,000 23,923,000

yang Diperolehi dari Peruntukan
Pembangunan
(Termasuk Tanah, Bangunan,
Kemudahan dan Alat Kelengkapan)
Sales of Property Other Than
That Procured Under Development
Allocation (Include Land, Building
and Equipment)
73900 Pelbagai Jualan 25,896,384 31,564,000 33,890,000

Miscellaneous Sales
74000 Sewaan 180,319,974 259,170,000 342,232,000

Rental
74100 Sewa Tanah 76,836,822 118,236,000 156,130,000

Land Rental
74200 Sewa Bangunan 94,823,500 130,404,000 172,197,000

Building Rental
74300 Sewa Kenderaan 1,463,889 3,452,000 4,559,000

Vehicle Rental
74400 Sewa Jentera 17,630 17,000 22,000

Rental for Machinery


(2021 Revised
Estimate)
RM RM RM

Sewaan -(Samb.)
Rental -(Cont.)
74500 Sewa Alat Kelengkapan Pejabat, 11,348 13,000 18,000

Perabot, dan Kelengkapan
5HQWDORI2IÀFH)DFLOLWLHVDQG
Furniture

Elektronik
Rental of Electronic Equipment

Elektrik
Rental of Electrical Equipment
74800 Sewa Alat Kelengkapan Penyiaran 125,174 97,000 128,000

dan Perhubungan
Rental of Broadcasting and
Telecommunication Equipment
74900 Sewa Pelbagai 6,654,179 6,944,000 9,169,000

Miscellaneous Rental
75000 Faedah dan Pulangan Pelaburan 46,067,499,372 35,989,007,000 39,457,483,000

Interest and Return on Investments

Perusahaan Kewangan
Return on Investments from
Financial Institutions
75105 Hasil Dan Faedah Dari 3,500,000,000 4,000,000,000 5,000,000,000

Pelaburan Dalam Bank
Negara Malaysia
Interest and Return on
Investment from Bank
Negara Malaysia
Lain-lain 300,067,692 130,711,000 104,194,000

Others

Perusahaan Bukan Kewangan
Non-Financial Institutions


(2021 Revised
Estimate)
RM RM RM

Faedah dan Pulangan Pelaburan -(Samb.)

Interest and Return on Investments -(Cont.)
75213 Hasil Dan Faedah 34,000,000,000 25,000,000,000 25,000,000,000

Dari Pelaburan Dalam
Petroliam Nasional
Berhad (PETRONAS)
Investment from Petroliam
Nasional Berhad
(PETRONAS)
75231 Hasil Dan Faedah 1,000,000,000 2,000,000,000 1,000,000,000

Dari Pelaburan Dalam
Khazanah Nasional
Berhad
Investment from Khazanah
Nasional Berhad
Lain-Lain 123,037,826 60,938,000 69,110,000

Others
75300 Pulangan dari Pelaburan Luar 8,706,740 1,134,000 1,134,000

Negeri
Overseas
75400 Pulangan dari Pelaburan-Pelaburan 7,135,687,114 4,796,224,000 8,283,045,000

dalam Negeri yang Lain
Return from Other Internal
Investments
76000 Denda dan Penalti 1,421,579,016 1,557,330,000 1,573,850,000

Fines and Penalties
77000 Sumbangan dan Bayaran Ganti daripada 177,791,986 8,248,000 10,937,000

Luar Negeri dan Sumbangan Tempatan
Overseas and Local Contributions
77100 Bayaran Ganti Bagi Perkhidmatan 31 - -

dari Luar Negeri
Compensation For Services from
Overseas


(2021 Revised
Estimate)
RM RM RM

Sumbangan dan Bayaran Ganti daripada Luar

Negeri dan Sumbangan Tempatan -(Samb.)
Overseas and Local Contributions -(Cont.)
77400 Sumbangan Tempatan 177,791,955 8,248,000 10,937,000

Local Contributions
78000 Pendapatan daripada Aktiviti Carigali 1,641,535,874 1,670,845,000 1,707,671,000

Minyak dan Gas MTJA
Income from Exploration of Oil and Gas
MTJA
78100 Pendapatan daripada Operasi 1,641,535,874 1,670,845,000 1,707,671,000

Petroleum Pihak Berkuasa Bersama
Malaysia-Thailand (MTJA)
Income from Petroleum Operation
Malaysia-Thailand Joint Authority
(MTJA)
80000 TERIMAAN BUKAN HASIL 7,953,680,648 7,005,000,000 6,030,830,000

NON-REVENUE RECEIPTS
81000 Pulangan Balik Perbelanjaan 2,634,409,058 1,228,943,000 1,015,233,000

Refunds of Expenditure
81100 Pulangan Balik Perbelanjaan Am 2,142,781,134 1,168,461,000 963,160,000

Refunds of General Expenditure
81200 Dapatan Balik Wang Amanah 176,278,285 115,000 100,000

Trust Fund Refunded
81300 Dapatan Balik Wang-Wang Tak 315,349,639 60,367,000 51,973,000

Dituntut
Unclaimed Monies Refunded
82000 Terimaan daripada Agensi Kerajaan 5,319,231,740 5,776,057,000 5,015,597,000

Receipts from Government Agencies
82100 Terimaan untuk Perkhidmatan 2,242,831 3,693,000 3,587,000

Receipts For Services


(2021 Revised
Estimate)
RM RM RM
TERIMAAN BUKAN HASIL -(Samb.)

NON-REVENUE RECEIPTS -(Cont.)
82200 Bayaran Balik 3,531,510 8,230,000 7,995,000

Repayments
82300 Pemberian dan Caruman 5,250,000,000 5,760,000,000 5,000,000,000

Transfers and Contributions
82400 Jualan 88,481 65,000 63,000

Sales
82500 Pelbagai Terimaan 63,368,918 4,069,000 3,952,000

Miscellaneous Receipts

Adjustment Proceeds
90000 HASIL DARIPADA WILAYAH PERSEKUTUAN 676,695,480 699,754,000 730,382,000

91000 Hasil Cukai daripada Wilayah 617,784,952 631,144,000 658,727,000

Persekutuan
Tax Revenue from Federal Territories
91100 Cukai Langsung 577,611,112 628,285,000 656,163,000

Direct Tax
91200 Cukai Tidak Langsung 40,173,840 2,859,000 2,564,000

Indirect Tax
92000 Hasil Bukan Cukai daripada Wilayah 58,910,528 68,610,000 71,655,000

Persekutuan
Non-Tax Revenue from Federal Territories
92100 Lesen, Bayaran Pendaftaran dan 4,614,246 4,953,000 5,173,000

Permit
Licences, Registration Fees and
Permits
92200 Perkhidmatan dan Bayaran 52,648,701 61,207,000 63,923,000

Perkhidmatan
Services and Services Fee


(2021 Revised
Estimate)
RM RM RM
HASIL DARIPADA WILAYAH

PERSEKUTUAN -(Samb.)
REVENUE FROM FEDERAL
TERRITORIES -(Cont.)
Hasil Bukan Cukai daripada Wilayah

Persekutuan -(Samb.)
Non-Tax Revenue from Federal
Territories -(Cont.)
92400 Sewaan 50,297 26,000 27,000

Rentals
92900 Pelbagai Hasil Bukan Cukai 1,597,284 2,424,000 2,532,000

Miscellaneous Non-Tax Revenue
JUMLAH HASIL KERAJAAN PERSEKUTUAN 225,074,947,242 221,023,000,000 234,011,430,000

TOTAL FEDERAL GOVERNMENT REVENUE

Hasil Kerajaan Persekutuan

(Selepas Mengambil Kira Langkah Bajet
Yang Dicadangkan Dalam Bajet 2022)

(After Taking Into Account Budget
Measures Proposed In 2022 Budget)

JUMLAH HASIL SELEPAS LANGKAH BAJET TAHUN 2022

৴৲৴৴727$/5(9(18($)7(5%8'*(70($685(6
RM
JUMLAH HASIL KERAJAAN PERSEKUTUAN 234,011,430,000
Sebelum mengambil kira langkah bajet yang dicadangkan
dalam Bajet 2022
727$/)('(5$/*29(510(175(9(18(
Before taking into account budget measures proposed in the
2022 Budget
LANGKAH BAJET:
BUDGET MEASURES:
60000 HASIL CUKAI

TAX REVENUE
61000 CUKAI LANGSUNG 5,196,000,000

',5(&77$;
61100 Cukai Pendapatan 5,027,000,000

Income Tax
61900 Cukai Langsung yang lain 169,000,000

Other Direct Tax
62000 CUKAI TIDAK LANGSUNG 1,221,000,000

,1',5(&77$;
62200 Duti Import (373,000,000)

Import Duty
62300 Duti Eksais Terhadap Barangan Tempatan 1,036,000,000

62400- Cukai Jualan 748,000,000

62500 Sales Tax
62600 Cukai Perkhidmatan 130,000,000

Service Tax
62800 Duti Eksais Terhadap Barangan Import (320,000,000)

Excise Duty on Imported Goods
64000 CUKAI PELANCONGAN (200,000,000)

7285,607$;
90000 HASIL DARIPADA WILAYAH PERSEKUTUAN

91000 HASIL CUKAI DARIPADA WILAYAH PERSEKUTUAN (37,000,000)

7$;5(9(18()520)('(5$/7(55,725,(6
Tambahan Hasil Bersih 6,180,000,000

1HW5HYHQXH*DLQ
JUMLAH HASIL KERAJAAN PERSEKUTUAN 240,191,430,000
Selepas mengambil kira langkah bajet yang dicadangkan
dalam Bajet 2022
727$/)('(5$/*29(510(175(9(18(
After taking into account budget measures proposed in the 2022 Budget

2022 Fiscal Outlook and Federal Government Revenue Estimates

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2022 Fiscal Outlook

Following the proclamation of a public health and economic emergency (“Emergency

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  101

Fiscal accountability goes beyond responsible spending of revenue and ensuring

'$72Ȇ 65, ,60$,/ 6$%5, %,1 <$$.2%

102 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 

0,1,67(5 2) ),1$1&(

Despite ongoing challenges on SOP compliance, targeted containment measures and

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  103

7(1*.8 '$78. 6(5, 87$0$ =$)58/ 7(1*.8 $%'8/ $=,=

104 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 

Borrowings and Use

Non-tax Other Direct Tax

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  105

SECTION 2 FEDERAL GOVERNMENT REVENUE

SECTION 3 FEDERAL GOVERNMENT EXPENDITURE

SECTION 4 DEBT MANAGEMENT

SECTION 5 FISCAL RISK AND LIABILITY

SECTION 6 CONSOLIDATED PUBLIC SECTOR

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  107

PUBLIC FINANCE STATISTICS 207

108 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 

ACRONYMS AND ABBREVIATIONS

11MP Eleventh Malaysia Plan e-Tanah electronic land management

BCG budgetary central government GDP Gross Domestic Product

BNM Bank Negara Malaysia GGs Government guarantees

BPN Bantuan Prihatin Nasional GKP SME Prihatin Grant

BPR Bantuan Prihatin Rakyat GLC government-linked companies

bps basis points GoM Government of Malaysia

BSH Cost of Living Aid GSSS Green, Social, Sustainability

CIA Collection Intelligence KWAP Retirement Fund

CITA companies income tax KWC-19 COVID-19 Fund

COVID-19 Coronavirus Disease 2019 LPPSA Public Sector Home Financing

DE development expenditure MACC Malaysia Anti-Corruption

ESG environmental, social and MGS Malaysian Government

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  109

MIDA Malaysia Investment PETRONAS Petroliam Nasional Berhad

MPC Monetary Policy Committee PPR People’s Housing Project

MRT mass rapid transit PRIHATIN PRIHATIN Rakyat Economic

NFPCs non-financial public SME small and medium enterprise

OECD Organisation for Economic Co- SRR Statutory Reserve Requirement

PDRM Royal Malaysian Police SWF sovereign wealth fund

PEMULIH National People’s Well-Being TIV total industry volume

PERMAI Perlindungan Ekonomi dan TVET technical and vocational

PEMERKASA Strategic Programme to WGBI World Government Bond Index

110 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 

113 ࢥ ऄ࣠ࢍ ࣎ ࣧ ࢸࣔ࣎ ࢍ ࣣअࢯ ࢸ ࣧ ࢛ ࢍ ࣇ

12 1 ࢯࢸ ࢛ࣧ ࢍ ࣇ࣠ࣔࣧ ࢸ ࣮ ࢸࣔ࣎ࢸ ࣎

12 2 ࣍ࢥ ࢡࢸࣳ࣍ ࣮ࢥ ࣣ ࣍ࢯࢸ ࢛ࣧ ࢍ ࣇ

Fiscal Policy Overview

Overview Recognising that vaccination is the key factor

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  113

1DWLRQDO 7UXVW )XQG

114 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 

ࢯࢸࢰࣣࣳࢥ1. Type of SWF

STABILISATION FUND SAVINGS FUND STRATEGIC AND PENSION

7KH 1DWLRQDO 7UXVW )XQG

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ  115

ࢯࢸࢰࣣࣳࢥ 2. Growth and Return on Asset of the NTF

Source: NTF Annual Report

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 101

102 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 103

7(1.8 '$78. 6(5, 87$0$ =$)58/ 7(1.8 $%'8/ $=,=

104 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 105

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 107

108 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 109

110 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

12 1 ࢯࢸ ࢛ࣧ ࢍ ࣇ࣠ࣔࣧ ࢸ ࣮ ࢸࣔ࣎ࢸ ࣎

12 2 ࣍ࢥ ࢡࢸࣳ࣍ ࣮ࢥ ࣣ ࣍ࢯࢸ ࢛ࣧ ࢍ ࣇ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 113

114 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 115

116 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸࢰࣣࣳࢥSummary of the NTF’s Investment Portfolios

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 117

118 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 119

120 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

࣮ࢍ࢚ࣇࢥ Federal Government Financial Position,

3 4 3 4 3 4

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 121

122 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 123

124 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸࢰࣣࣳࢥFiscal Regulatory Framework

࣮ࢍ࢚ࣇࢥ Debt Acts and Rules

2ࢆVKRUHERUURZLQJFHLOLQJQRWH[FHHGLQJ50ELOOLRQ External Loans Act 1963

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 125

126 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸࢰࣣࣳࢥProposed Fiscal Responsibility Act Framework

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 127

࣮ࢍ࢚ࣇࢥ Feedback from Local Organisations

128 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

࣮ࢍ࢚ࣇࢥ Feedback from International Organisations

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 129

130 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 131

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 135

࣮ࢍ࢚ࣇࢥ Federal Government Revenue

136 ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ

ࢯࢸ࢛ࣧࢍࣇ ࣮ࣔࣳࣇࣔࣔࣅ 137