Malaysia's federal finances show stronger surplus and reduced deficit in 2025 audit
The 2025 audit reveals a larger revenue surplus and a narrower fiscal deficit for Malaysia's federal government compared with the previous year.
The National Audit Department's 2025 audit report shows the federal government's fiscal position improving, with the revenue surplus expanding by RM2.184 billion and the overall deficit narrowing by RM3.878 billion versus 2024. The deficit-to-GDP ratio fell to 3.7%, surpassing the 3.8% goal outlined in the 2025 Budget and supporting the medium-term aim of keeping the deficit below three percent. Over the 2021-2025 period, the debt growth rate decelerated to 5.9% from 10.2%, and new borrowing fell to roughly RM185.6 billion, down from about RM202.2 billion the year before.
Most of the new borrowing was used to repay maturing loans and fund development projects via the Development Fund. The audit flagged persistent low collection of recoverable loan arrears—only RM465 million of RM9.273 billion—and recommended stronger oversight and risk assessment by the finance ministry. Additionally, the government wrote off RM578.32 million in loan arrears, covering both principal and interest components.
Why it matters
Improved fiscal metrics signal better budget health and lower debt risk for Malaysia's economy.
How the sides frame it
HIGH AGREEMENTBoth centrist and right-leaning coverage report the same audit findings, but centrist outlets foreground official praise of the audit institution while right-leaning outlets highlight the fiscal numbers and note the audit’s warning about low loan-arrears collection.
CENTER
Centrist coverage frames the story around the audit department’s statements praising improved finances and its strengthened, free, professional role.
RIGHT
Right-leaning coverage frames the story around the concrete fiscal improvements and the audit’s flagging of low loan-arrears collection.
The right emphasises
- revenue surplus expanded by RM2.184 billion
- overall deficit narrowed by RM3.878 billion versus 2024
- audit flagged persistent low collection of recoverable loan arrears - only RM465 million of RM9.273 billion
In this story
