Malaysia Unveils Record $98 Billion Budget for 2025

Prime Minister Anwar Ibrahim announces targeted subsidy cuts and tax reforms to boost revenue and reduce fiscal deficit.

The 2025 budget totals 421 billion ringgit, marking the largest in Malaysia's history, with a focus on economic competitiveness and social welfare.
Subsidy reforms include ending blanket subsidies for RON95 petrol by mid-2025, targeting only the top 15% of earners and non-Malaysians.
Government revenue is projected to grow by 5.5% to 339.7 billion ringgit, driven by expanded tax collections and subsidy rationalizations.
Civil servants will see salary increases starting December, part of broader public service restructuring efforts.
The fiscal deficit is expected to narrow to 3.8% of GDP, down from 4.3% in 2024, as part of ongoing fiscal reforms.