Highlights of Malaysia's Budget 2024: Economic Reform and Empowering the People
KUALA LUMPUR, Oct 13 - Malaysia's Prime Minister Datuk Seri Anwar Ibrahim presented the Budget 2024 in the Dewan Rakyat, outlining a series of initiatives aimed at economic reform and empowering the nation's people.
The budget, with a total allocation of RM393.8 billion, encompasses both operating and development expenditure, along with a contingency savings fund of RM2 billion. This marks Anwar's second budget since the formation of the Unity Government in November 2022, and it reveals a clear focus on social welfare, economic development, and infrastructure improvement.
Key Budget Highlights:
Unemployment Rate: The unemployment rate stood at 3.4 percent as of August 2023.
Service Tax Increase: The government proposed to increase the Service Tax to 8 percent, excluding food, beverages, and telecommunications.
Targeted Subsidies: Targeted subsidies will be implemented in stages beginning in 2024, with the savings from these subsidies allocated to increase the Rahmah Cash Aid from RM8 billion to RM10 billion.
Price Controls: Price controls for chicken and eggs will be lifted to allow the local market to function freely in ensuring a guaranteed supply.
Infrastructure Development: Significant allocations have been made for the maintenance and repair of various infrastructure, including quarters for civil servants, teachers, hospitals, police, armed forces, and firefighters, as well as federal roads and bridges.
Judicial Productivity: RM38 million is allocated to boost the productivity of the judiciary.
Electricity Bill Rebate: Hardcore poor households will continue to receive electricity bill rebates of up to RM40 per month, with an allocation of RM55 million.
Tourism Promotion: RM350 million has been set aside to boost tourism promotion and activities in Malaysia, including relaxed conditions for the Malaysia My Second Home (MM2H) program.
Agriculture Support: RM2.4 billion is allocated to boost agricultural commodity activities and enhance the socio-economic well-being of smallholders.
Environmental Initiatives: The government is investing in environmentally friendly practices, including the acquisition of electric buses, turning Putrajaya into a low-carbon city, and using electric vehicles as official vehicles.
Flood Mitigation: A total of 33 high-priority flood mitigation projects, costing RM11.8 billion, will be implemented in the coming year.
Food Security: Initiatives to strengthen food security include an increased floor price for rice and funds for the Agricultural Disaster Fund.
Social Welfare: A substantial allocation of over RM2.4 billion goes to the Social Welfare Department to benefit various vulnerable groups.
Education: The Education Ministry receives the largest allocation of RM58.7 billion, with funds directed towards school maintenance and upgrades. The Higher Education Ministry is allocated RM16.3 billion.
Healthcare: The Health Ministry's budget sees a significant increase to RM41.2 billion in 2024.
Excise Duty on Sugary Drinks: Excise duty rates for sugary drinks will be raised from 40 sen to 50 sen per litre.
Infrastructure Projects: Key infrastructure projects include the completion of the Sarawak Pan Borneo Highway in 2024 and an allocation for people's housing projects.
Defense and Security: The Defense Ministry receives RM19.7 billion, and the Home Ministry is allocated RM19 billion for its operations.
Tax Relief: A tax relief limit of up to RM1,000 is provided for the purchase of sports equipment and activities.
Incentives: Civil servants in grades 56 and below, including contract staff, will receive a RM2,000 incentive, and government pensioners, including veterans, will receive RM1,000.
The Budget 2024 reflects Malaysia's commitment to addressing economic challenges, enhancing social welfare, and supporting sustainable development initiatives. The allocation and focus on key sectors demonstrate the government's dedication to creating a more prosperous and inclusive future for its citizens.
