KUALA LUMPUR: Malaysia continues to show fiscal discipline, having progressively narrowed its fiscal deficit since the global financial crisis to-date and putting in painful measures such as introducing the Good and Services Tax (GST), reducing fuel subsidies and diversifying its economy, says Franklin Templeton Investments. The global investment firm said the 2017 Budget aims to strengthen the country's fiscal position through prudent spending while supporting economic growth, and at the same time paying close attention to the well-being of the people. The country's fiscal position in the second half of 2016 and into 2017 is also expected to improve as the government has been exploring other revenues, she noted. "These are signs of a path paved towards a developed economy and in our view, Malaysia remains a competitive economy among its emerging market peers," she said. "Fund raising will also boost the bond and Sukuk market supply, which provides a good hunting ground for investment managers with local portfolios, like Franklin Templeton, to invest in," she said.

Source: New Strait Times October 22, 2016 13:07 UTC