KUALA LUMPUR, April 9 (Xinhua) -- BMI Country Risk and Industry Research has retained its forecast for Malaysia's federal government budget to narrow to 3.8 percent of gross domestic product (GDP) in 2025 from 4.1 percent in 2024.

The Fitch research unit said in a note on Tuesday that the key to the narrower deficit is a continued broadening of the tax base, while the Malaysian government continues to rein in spending.

"Given the current administration's track record of sticking closely to its fiscal projections, we remain comfortable with our forecast which are largely in line with that of the government's," it said.

The BMI also forecasts Malaysia's revenue growth to slow marginally to 16.3 percent of GDP in 2025, from 16.6 percent in 2024.

It expects Malaysia's total expenditure to fall to 20.1 percent of GDP in 2025 from 20.9 percent in 2024.

It also forecasts Malaysia's total government debt as a share of GDP to remain elevated around 63 percent of GDP, which will remain just a touch below the revised statutory debt limit of 65 percent. Enditem

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