KUALA LUMPUR, July 19 -- Malaysia has not been too cautious or bold with its direct fiscal injections, as the government is prepared to increase fiscal space should the need to support the national economy and the rakyat arise, said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

In an interview with South China Morning Post, he said the highest ever deficit in the country was from 2008 to 2009, when it stood between 6.7 to 6.9 per cent.

"Even during the Parliament session last year, I announced that the deficit target will be around 5.4 per cent. And in February, I announced again it will be six per cent.

"With the recent stimulus packages that we have announced, I believe the deficit will go up to 6.5 to seven per cent. So it s...