KUALA LUMPUR: In this special edition of Beyond the Headlines, hosts Amalina Kamal and Hazween Hassan dissect Budget 2025, presented by Prime Minister Datuk Seri Anwar Ibrahim.
As the final budget under the 12th Malaysia Plan, it sets a historic precedent with the largest allocation to date—RM421 billion, focusing on economic reform, wealth distribution, and sustainable growth.
Key highlights of the budget include:
- Reducing the fiscal deficit from 4.3 per cent in 2024 to 3.8 per cent in 2025, along with a national debt reduction target of RM80 billion.
- Revenue growth projected at RM340 billion for 2025.
- A shift in sales tax application, sparing essential food items while targeting premium imports.
- Subsidy adjustments, with targeted subsidies for the top 15 per cent income earners starting mid-2025, leaving most of the population unaffected by changes in RON95 petrol and electricity subsidies.
- A reduction in education subsidies for the top 15 per cent, reallocating funds to improve boarding schools and public universities.
- Public-private partnerships and government-linked investments, alongside RM120 billion in public investment for development projects.
Guests Dr. Geoffrey Williams (economist) and Renganathan Kannan (tax advisor) joined the discussion on set.
We explored the budget's impact on Malaysia's economic growth, fiscal sustainability, tax reforms, and wealth inequality.
Key topics included the introduction of a 2 per cent dividend tax, targeted subsidies, social protection programmes, regional development in Sabah and Sarawak, and the country's readiness for the green economy transition.
The episode wrapped up with insights on balancing growth and fiscal discipline.
Emphasis on how Budget 2025 aims to stimulate both public and private sector participation in Malaysia's future economic landscape were also looked into.
Revisit the discussion on NST Online's YouTube.