With Malaysia becoming a huge financial hub and being South Asia’s third-largest economy, the nation is getting on track after hitting major deficits in the past years following the huge scandal of the previous administration of the nation.

Malaysia has seen a huge sandal called the 1MDB scandal, which happened in the previous administration of the former prime minister Najib. The new administration has been investigating the financial scandal and is trying to claw back the money is lost and the deficit it created for the nation’s finances and economic development. Malaysia is all set to meet its fiscal deficit target of 3.4% of gross domestic product (GDP) and is expected to raise some RM52 billion worth of net direct debt this year stated the Finance Minister of Malaysia Lim Guan Eng. He dismissed allegations by certain quarters that the net direct debt raised had already hit RM58 billion as at Sept 26, saying they are "baseless and false". In a statement yesterday i.e. 26th September 2019, Lim said the RM58 billion figure fails to take into consideration two key factors. One of the two factors is that the government issues and redeems its debt and the second one is securities regularly each year based on its yearly debt issuance and redemption schedule.

The finance minister stated that the RM52 billion funds raised this year as it was planned in Budget 2019 tabled last year and this will be used for development expenditure such as roads and infrastructure for the public and other welfare projects. The government's net debt peaked at RM53 billion last year, translating to a fiscal deficit of 3.7% of GDP.