Malaysia PM Anwar tables record RM393.8 billion Budget

  • Malaysian Prime Minister Anwar Ibrahim on Friday (Oct 13) tabled the country’s largest-ever budget, as he made a further push for a shift from the current blanket subsidies to a more targeted approach aimed at giving more to the truly needy.
  • The Sales and Services Tax (SST) increased from six per cent to eight per cent, though it will not include food and beverages or telecommunications.
  • A capital gains tax on unlisted shares will also be introduced at a rate of 10 per cent from March 1 next year.
  • Separately, a high-value goods tax of five to 10 per cent on items such as jewellery and watches will also be introduced, he said.
  • Mr Anwar, who is also the country’s finance minister, announced that RM303.8 billion – about 77 per cent of the RM393.8 billion budget next year – will be allocated for operating expenditure while RM90 billion is for development expenditure.
  • “From next year, a targeted approach to the subsidies will be implemented in phases” PM Anwar said.
  • Diesel subsidies, will however, still be enjoyed by certain groups of consumers, such as logistics companies, he said.

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