Malaysian PM Re-Introduces 2023 Budget, Revises allocation to USD 87B

On Friday (Feb 24), Malaysian Prime Minister Anwar Ibrahim re-introduced the budget for 2023, revising it upwards to RM388.1 billion (US$87.49 billion).

This is the largest allocation in Malaysian history, as the government continues to provide assistance in steering the economy, according to Bernama, citing the finance ministry.

The budget allocation is an increase from the RM372.3 billion budget tabled in October 2022 by the previous government led by Ismail Sabri Yaakob, which could not be passed before parliament was dissolved.

Bernama reports that RM289.1 billion has been set aside for operating expenses, while RM99 billion has been set aside for development expenses, including RM2 billion in contingency savings.

A significant allocation of 23.5 percent will be made for emoluments, subsidies, and social assistance (15.2%), economic (14.3%), debt service charges (11.9%), and supplies and services (8.3 per cent).

There will also be retirement charges (8.0%), social (6.9%), security (3.0%), grants and transfers to state governments (2.1%), general administration (1.0%), and other charges (5.8 per cent).

Mr Anwar also stated that the government expects economic growth to be around 4.5 percent.

The prime minister also stated that Malaysia will implement a luxury goods tax this year and will consider implementing a capital gains tax in accordance with international standards.