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Malaysia’s record budget aims to expand tax base, reduce subsidies

PM Anwar focuses on lifting economic growth as he announces largest-ever budget spending of RM421 billion

Tan Ai Leng
Published Fri, Oct 18, 2024 · 05:04 PM — Updated Sat, Oct 19, 2024 · 01:22 PM
    • PM Anwar said the government is looking at increasing the tax revenue by expanding the scope of the country’s sales and service tax, starting in May next year.
    • PM Anwar said the government is looking at increasing the tax revenue by expanding the scope of the country’s sales and service tax, starting in May next year. PHOTO: EPA-EFE

    [KUALA LUMPUR] MALAYSIAN Prime Minister Anwar Ibrahim on Friday (Oct 18) announced the country’s largest budget of RM421 billion (S$128.3 billion) for 2025, focusing on boosting economic growth while continuing to cut subsidies to reduce the fiscal deficit.

    Anwar, who is also the finance minister, said that RM335 billion will be used for operating expenditure, and RM86 billion for development spending.

    The spending plan is higher than the previous budget of RM393.8 billion.

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