Kuala Lumpur (VNA) – The Malaysian Budget 2025, unveiled by Prime Minister and Finance Minister Anwar Ibrahim on October 18, demonstrates the government’s dual goals of consolidating finance and fostering economic growth.
Shan Saeed, Chief Economist at Juwai IQI, an international real estate technology group, said the budget sets ambitious targets on reducing debt, bolstering economic growth, increasing income, and addressing key areas to ensure sustainable development.
He noted that the government projects an economic growth rate of 4.5-5.5% in 2025, driven by robust investment and consumption, adding spending on infrastructure will contribute significantly to GDP growth, providing a solid foundation for Malaysia's economic trajectory.
A key aspect of the budget, he said, is fiscal consolidation, with the government aiming to bring the fiscal deficit to 3.8% of the GDP next year.
He said he supports the government’s commitment to reducing debt as it is necessary to maintain investors’ confidence and ensure economic stability.
The government intends to cut subsidies for RON95 petrol in the middle of 2025 with an expected annual saving of 1.88 billion USD, which, the economist said, aligns with a broader goal of improving financial sustainability without adversely affecting low-income earners’ living standards.
Additionally, the expansion of the Sales and Service Tax to cover more services and non-essential goods will help the government increase revenue and reduce budget deficit, he added./.
VNA
