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flag Malaysia is on track to meet its 2025 deficit target, with progress shown in reduced borrowing and rising incomes.

flag Malaysia is on track to meet its 2025 fiscal deficit target of 3.8% of GDP, with the deficit narrowing to RM49.4 billion by August 2025, according to government data. flag The country saved RM20 billion in borrowings from 2022 to 2024 through fiscal consolidation, reducing the deficit from 6.4% to 4.1%. flag Household income rose, with median disposable income reaching RM5,999 in 2024, while poverty rates fell to 5.1%. flag The upcoming Budget 2026, set for October 10, is expected to be expansionary, focusing on subsidies, social aid, healthcare reform, and infrastructure amid efforts to balance growth with fiscal sustainability.

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