Budget 2025 Focuses On Boosting Economy, Mastering Innovation, Ensuring Fair Distribution Of Wealth

KUALA LUMPUR, Oct 18 (Bernama) -- A greater emphasis on efforts aim at boosting the economy, mastering innovation aspects, and ensuring a fairer and more equitable distribution of wealth is at the core of the MADANI Budget 2025.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling the national budget amounting to RM421 billion in Parliament today, said the emphasis given to those aspects would indirectly strengthen the nation’s commitment to building and developing a green, digital, and resilient future.

Furthermore, Anwar, who is also Finance Minister, said the focus would also advocate for the weak and vulnerable, ensuring that no groups are left behind in the pursuit of high-income nation status.

“When we (MADANI Government) took over the country’s administration, we set a clear direction that past mistakes should neither be defended nor repeated. Therefore, the principle of good governance must continue to take root and be nurtured,” he said.

Budget 2025 is the highest budget in the country’s history and the third budget tabled under the MADANI Government led by Anwar, as well as the last under the 12th Malaysia Plan (2021-2025) before transitioning to the 13th Malaysia Plan for the next five years.

Elaborating further on this core aspect, Anwar stated that the government does not want leaders and political elites, entrepreneurs, civil servants, and the people to be seen as separate from the framework of uplifting the dignity of the people.

“This is not merely the Ministry of Finance's Budget; it is the People's Budget. Therefore, I want to embrace the entire strength of the people, as I have previously mentioned, that we have never had a better opportunity to shape an agenda to empower the economy and uplift the dignity of the people like we witness now,” he said.

The Prime Minister said that the country should be known for its examples of good governance, leadership values, and those who do not use power and position to protect their own interests.

On Malaysia’s economic performance, the Prime Minister said the country’s Gross Domestic Product (GDP) was projected to be stronger at between 4.8 per cent and 5.3 per cent this year compared to between 4.0 and 5.0 per cent last year.

Moreover, he said that the World Bank has also revised Malaysia's growth forecast to 4.9 per cent, up from 4.3 per cent in April, while ringgit has been recognised as one of the best-performing currencies in the world.

In his two-and-a-half-hour speech, Anwar stated that the MADANI Government is also committed to implementing public service reforms that uphold the principles of good governance to drive productivity.

He said that a bill to ensure public administration efficiency commitment will be drafted, covering three major shifts: reducing bureaucracy, speeding up processes, and enhancing service efficiency.

"The Public Service Reform Agenda focuses on five key outcomes: Values and Governance, Human Capital Development, Organisational Development, Service Delivery, and Strategic Public-Private Synergy,” he said.

On efforts to combat corruption, which he described as a silent cancer that undermines public morale and investor confidence, the Prime Minister said the government has given full independence to the Malaysian Anti-Corruption Commission (MACC) to investigate and take firm action.

“Figures show an increase of more than 20 per cent in arrests and opening of investigation papers in 2023 compared to the previous year,” Anwar said, adding that the MACC's budget has also been increased to RM360 million, up from RM338 million.

In the speech, Anwar also highlighted five important aspects related to the people's lives. 

These five aspects are focused on navigating the MADANI Economy, namely implementing reforms more decisively; eliminating bureaucratic red tape; increasing wages and incomes; and addressing the cost of living.

In the context of a complex global economy, the Prime Minister said the government will do its utmost to ensure that the national economy remains strong and competitive, while also maintaining solid fundamentals to withstand any turbulence that could destabilise the country's economic system.

On targetted subsidy scheme, Anwar said that the government must take a bold approach by introducing targetted subsidies to avoid blanket spending, a move that has resulted in savings that can be allocated to other priorities.

“Subsidies, in principle, much like charity, should not be enjoyed by the super-rich. Up until now, we have been spending subsidies indiscriminately on fuel, electricity, water, education and health services, and even basic goods like chicken.

“Such an approach is certainly unreasonable, especially when the country is burdened by debt and has a low revenue base,” he explained.

Anwar said the government is also committed to maintaining subsidies for the majority of the population, as seen in the targeted electricity subsidy programme, where 85 per cent of citizens were unaffected.

In line with this, he said the government plans to implement targeted subsidies for RON95 petrol in mid-2025.

He said the targetted subsidy initiative and the expansion of the revenue base are among the measures aimed at providing more meaningful assistance to the people.

Next year, he said the government will also increase in the allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes to RM13 billion from RM10 billion this year.

Additionally, he noted that the allocation for the cash assistance under the Department of Social Welfare (JKM) will also be increased to RM2.9 billion, up from RM2.4 billion this year.

Anwar also touched on the allocation for education and health, which received the highest and second highest allcoations at RM64.1 billion and RM45.3 bilion, respectively.

Through the allocation for the Ministry of Education, the government would build 44 new schools, including in Sabah and Sarawak, apart from making 17 types of educational assistance available with an allocation of RM5.3 billion.

Meanwhile, the Ministry of Higher Education has been allocated RM18 billion, with a commitment to improving the quality of higher education institutions, including upgrading infrastructure, replacing outdated equipment, and expanding internet access in all public universities.

Anwar also said that, next year, AI-related education will be expanded to all research universities with a budget of RM50 million, compared to RM20 million this year.

Regarding the healthcare allocation, Anwar stated that it is the Ministry of Health's responsibility to carry out fundamental duties, including ensuring that public healthcare services are of high quality, comfortable, and people-friendly.

The Prime Minister said the allocation for the ministry included the RM1.35 billion for the maintenance of healthcare infrastructure, including repairing dilapidated hospital wards and toilets.

The government has also allocated RM300 million for the upgrade of dilapidated clinics next year.

On Malaysia’s ASEAN Chairmanship for 2025, Anwar said it is Malaysia's best opportunity to steer ASEAN guided by the ASEAN Community Vision 2045.

He said Malaysia is committed to charting the direction of ASEAN that is more resilient, creative and people-centric, with over 270 meetings and activities already lined up across the country throughout the year.

-- BERNAMA