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Budget 2025

Key Highlights of Malaysia Budget 2025

Reinvigorating the Economy, Driving Reforms, and Prospering the Rakyat,”

Key Highlights:

  • Economic Growth: The budget projects a GDP growth rate of 4.5% to 5.5% for 2025, driven by increased domestic demand, private investment, and exports.
  • Fiscal Responsibility: The government aims to reduce the fiscal deficit to 3.8% of GDP in 2025, with a further goal of bringing it down to 3% by 2026.
  • Revenue Growth: Revenue is projected to grow by 5.5% to RM339.7 billion in 2025, primarily due to stronger direct tax collection and the expansion of the Sales and Service Tax (SST).  
  • Debt Management: The government will focus on reducing its debt-to-GDP ratio, aiming to lower it from the current 63.1% of GDP in June 2024.  
  • Tax Reforms: The budget includes measures such as expanding the scope of the SST, introducing a dividend tax on high-income individuals, and rationalizing subsidies.
  • Social Welfare: The budget allocates significant funds for social programs, including healthcare, education, and social assistance for vulnerable groups.
  • Infrastructure Development: The budget prioritizes investments in infrastructure projects, including transportation, digital connectivity, and renewable energy.
  • Digital Economy: The government aims to accelerate the digital transformation of the economy by promoting e-commerce, supporting digital businesses, and investing in digital infrastructure.
  • Green Initiatives: The budget includes measures to promote environmental sustainability, such as investing in renewable energy, promoting green technology, and implementing carbon tax.

Key Takeaways:

  • The budget focuses on revitalizing the economy through targeted investments, reforms, and fiscal consolidation.
  • It prioritizes the well-being of the rakyat through social programs, affordable housing, and improved healthcare access.
  • The budget emphasizes the importance of digitalization and sustainability in driving economic growth and ensuring a prosperous future for Malaysia.

For more detailed information, you can refer to the official Budget 2025 documents or consult with our financial experts.

Contents were sourced from publicly available information and reports released by the Malaysian government. The information provided in this response is for general knowledge and informational purposes only. It is not intended as financial, investment, or tax advice. The Malaysia Budget 2025 is a complex document, and this summary only provides some overview of key highlights.

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