Fitch expects constrained govt spending despite increased debt limit

Business research firm Fitch Solutions said that with government debt at RM854 billion or 59 percent of GDP, there is very little space left for more borrowings for future stimulus packages if required.

It said the country will have constrained fiscal spending over the next two years despite the Dewan Rakyat passing legislation on Aug 24 to raise the government debt limit from 55 percent to 60 percent of GDP.