BERNAMA – Budget 2025 worth MYR421 billion, the biggest in history, is strategically aligned with the MADANI Economy framework, focuses on attracting high-quality investments, stimulating business opportunities, undertaking projects for the wellbeing of the rakyat and not impacting their affordability in purchasing essential goods and services.
Announcing the budget in Parliament yesterday, Malaysian Prime Minister Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.
The initiatives announced in the budget are designed to accelerate Malaysia’s journey to become an economic powerhouse in Asia, positioning it for sustainable growth and resilience.
“The economic performance exceeded expectations, both in terms of growth, investment and the value of the ringgit: reflecting investor confidence and early success from the MADANI Economy’s reform measures. Thus, the 2024 gross domestic product (GDP) is projected to be stronger between 4.8 and 5.3 per cent compared to between four and five per cent previously.
“Next year, we are confident that the national economy will grow strongly between 4.5 and 5.5 per cent, supported by the measures and strategies of the third MADANI Budget 2025,” said Anwar, who is also the finance minister.
Through the budget themed ‘Membugar Ekonomi, Menjana Perubahan, Mensejahtera Rakyat’, the government maintains an expanding budget covering MYR335 billion for operating expenses, MYR86 billion for development, not including MYR2 billion in contingency reserves.
Anwar said this year’s revenue collection is again projected to be higher at MYR322 billion compared to MYR308 billion, while revenue collection in 2025 is expected to continue to rise to MYR340 billion.
The tax collected is still among the lowest at 12.6 per cent of GDP in 2023, compared to neighbouring countries like Thailand (16.1 per cent), the Philippines (14.1 per cent), and Singapore (13.7 per cent), he said.
“Actually, we bear subsidies, incentives and assistance reaching MYR80 billion last year, which are also enjoyed by the rich and foreigners,” he said.
Hence, the fiscal reforms that will be implemented next year will be more aggressive, including the progressive expansion of tax revenue and the targeting of subsidies only to the majority of people in need.
