economy

2025 Budget allocation of RM421bil sets solid foundation for economic growth

KUALA LUMPUR: The RM421 billion allocation in the 2025 Budget lays a strong foundation for economic revitalisation and positive change, according to Datuk Idzham Mohd Hashim, president and chief executive officer of Iskandar Investment Bhd (IIB).

He highlighted the government's focus on sustainable growth, fiscal discipline, and stability as key factors in normalising spending and creating a more predictable economic environment.

In his statement, Idzham commended the budget for its emphasis on fiscal discipline, boosting investor confidence, and fostering favourable conditions for foreign direct investment (FDI).

"By focusing on reducing the national debt and rationalising subsidies, the MADANI Government is laying a stable foundation that aims to keep inflation in check while stimulating long-term growth," he said.

Idzham said the government's decision to introduce tax relief measures for first-time homebuyers complements IIB's upcoming WAWARI project.

He said that this sustainable, mixed-income community will offer affordable housing in harmony with nature. 

Idzham explained that WAWARI will embody a low-carbon city concept, blending nature, community, and innovative urban design.

He also lauded the budget's sustainability measures, including incentives for carbon capture, utilisation, and storage (CCUS) activities, the introduction of a carbon tax, and the extension of the net-energy metering (NEM) program. 

He said these initiatives would enable IIB to further develop Medini as a Net Zero Carbon Central Business District, where digital innovation and sustainability converge to create a thriving business ecosystem.

Idzham said the New Investment Incentive Framework supports this direction by promoting value-added activities and high-quality job creation in emerging sectors. 

Special tax breaks for private universities, for example, encourage the development of courses in digital, AI, robotics, and IoT, which will attract start-ups and foster the growth of Tech Medini as a digital innovation hub in Iskandar Puteri, he said.

Additionally, he said the government's emphasis on broadening the tax base, providing direct cash subsidies, and increasing allocations for education and healthcare illustrates a holistic approach to ensuring the well-being of the people while supporting economic stability. 

This commitment to comprehensive development resonates strongly with IIB's own mission of creating a balanced and inclusive growth model, he said.

Looking forward, the Johor State Special Economic Zone (JSSEZ) stands as a strategic opportunity to build on these initiatives, Idzham said. 

"With tailored incentives and the development of Forest City as a duty-free zone, JSSEZ is positioned to become a hub for high-value industries, tourism, and financial innovation. 

"These efforts aim to draw international investors and accelerate Johor's emergence as a preferred destination for global businesses and cutting-edge industries, further supported by the budget's incentives that will attract higher FDI while keeping inflation in check."

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