KUALA LUMPUR (Sept 19): Malaysia needs an economic road-map to chart a path from global kleptocracy to sustainable growth, said Finance Minister Lim Guan Eng.

This includes issuance of debt and asset monetisation to meet financing needs, he said.

In a statement today, Lim said Malaysia can aim for sustainable growth with fiscal discipline, prudent budgeting, monetary stability and low inflation.

Investors are aware this is reflected by record high business confidence and consumer confidence in Malaysia, he said.

“In other words, whilst Malaysia may be suffering from legacy issues of corruption and global factors outside our control, with institutional reforms, the only way to go is up.

“If Malaysia can successfully navigate the fiscal challenges over the next 3 years, those who invest now can expect a substantial profit or returns to investment later,” he added.

Lim said there are several options available for the government to meet financing needs in the short term, that do not adversely impact growth.

He said the government will firstly find the lowest financing cost.

“Second, the timing and size of fund-raising will be guided by the ability of financial markets to absorb it in an orderly manner and avoid unintended consequences.

“Third, any form of strategy adopted will be focused on maintaining the overall confidence in fiscal sustainability and economic resiliency,” he said.

On strategies to meet financing needs, Lim said a combination of issuance of debt and asset monetisation will be considered.

On debt issuance, he said it was the simplest, most reliable and easiest to manage, due to the size of institutional investors.

Meanwhile, the other option is for the government to monetise some of its non-critical and non-strategic assets by engaging in the sale of shares, land and leasing of idle government assets and buildings.

Lim said balancing short-term fiscal gains and long-term revenue streams and growth is imperative to the government.

“A mixed policy strategy have many stakeholders and we will ensure that they are all engaged and considered to ensure a thorough and balanced fiscal strategy that minimises negative impacts.

“At the same time, these stakeholders must also realise the goal of the government in achieving a strategy that benefits the nation and the Rakyat as a whole,” he said.