Malaysia’s Prime Minister Anwar Ibrahim will announce the 2025 budget in parliament on Friday, 18 October 2024. Analysts and economists suggest the government is likely to implement additional new taxes and reduce subsidies for its 2025 budget, reports Reuters.
This move aims to bolster the country’s fiscal position as government revenues continue to decline.
The Prime Minister is expected to announce a tax on high-value goods and sugary beverages. However, analysts say the government is unlikely to reintroduce a broad-based goods and services tax.
The 2025 budget is expected to include subsidy adjustments for petrol (RON95), sugar, and locally produced white rice. This follows the elimination of costly subsidies for diesel fuel, electricity, and chicken.
The government is also expected to adjust its 2024 economic growth forecast to 4.5%- 5.1%, up from 4%- 5%, with growth expected to reach 5% in 2025.
