Budget 2025 Seeks to Balance Growth and Responsibility with Strategic Investments and Revenue Expansion.
Kuala Lumpur, 21 October 2024 – A Post-Budget Dialogue was held to offer a platform for the Ministry of Finance (MOF) to engage in detailed discussions about the newly announced Budget 2025. The event gathered prominent experts and economists to provide insights, clarify key measures, and explore the broader impact of the government’s fiscal strategies.
The dialogue featured remarks from Datuk Johan Mahmood Merican, Secretary General of Treasury, MOF, who outlined the government’s priorities in driving economic growth, strengthening fiscal responsibility, and fostering social inclusion through targeted reforms.
Additionally, the discussion was moderated by Tan Sri Dato’ Seri Sulaiman Mahbob, former President of the Malaysian Economic Association (MEA) and a board trustee at the Malaysian Institute of Economic Research (MIER). Panellists included; Tan Sri Dato’ Seri Dr. Noor Azlan Ghazali, Director of the Malaysian Inclusive Development and Management Institute (MINDA-UKM), Dato’ Prof. Dr. Nik Maheran Nik Muhammad, Faculty of Entrepreneurship & Business, Universiti Malaysia Kelantan, En Firdaos Rosli, Chief Economist, AmBank Group, and Cik Maslynnawati Ahmad, Director of Economics & Research, Bank Pembangunan Malaysia Berhad.
Budget 2025: A Balanced Approach to Growth and Reform
The government’s Budget 2025 reflects a strategic balance between fiscal responsibility and expansionary policies. It highlights key economic improvements, with GDP growth accelerating to 5.9% in Q2 2024, up from 4.2% in Q1, and an upward revision of the 2024 GDP forecast to 4.8%-5.3%.
The budget allocates RM421 billion, an increase from RM407.5 billion in 2024, targeting strategic investments and improving public service delivery. However, managing debt remains a priority, with total government debt standing at RM1.2 trillion and liabilities amounting to RM1.5 trillion. Revenue is expected to reach RM340 billion in 2025, boosted by an additional RM5 billion from the expansion of the Sales and Service Tax (SST).
Key themes emphasised in the dialogue also included:
1. Reforms and Governance: A “Whole of Nation” approach will drive reforms to ensure greater governance, efficiency, and responsiveness in public service delivery.
2. Strategic Investments for Growth: The government is committed to promoting sustainability and inclusiveness by facilitating financing for businesses throughout their lifecycle.
3. Social Protection and Public-Private Collaboration: Targeted assistance programs, such as Cost of Living Aid, will prioritise vulnerable groups, ensuring a higher quality of life for all Malaysians.
Ultimately, this significant dialogue underscored the importance of collaboration between the public and private sectors to meet the government’s long-term goals of creating a resilient, inclusive, and sustainable economy.
