Kuala Lampur, April 4 -- Malaysia's fiscal consolidation is not unfolding on stable ground. It is taking place on a tightrope, where every step towards fiscal discipline risks public pushback, and every delay risks eroding economic credibility. The central question is not whether reform is necessary, but whether it can be sustained without undermining growth, public trust, and political legitimacy.

Recent fiscal trends suggest that the government is moving in the right direction. Malaysia's fiscal deficit peaked at 6.4 per cent of GDP in 2021 before narrowing to 5.5 per cent in 2022 and 5.0 per cent in 2023. In 2024, the deficit improved further to 4.1 per cent, outperforming the initial target of 4.3 per cent. The government now aims to...