Ministry of Finance highlights priorities for Malaysia in 2025 Pre-Budget Statement

Key drivers include a recovery in exports, which grew by 5.2% in Q1 2024, and strengthened private investment growth, which reached 9.2% in Q1 2024 versus 4.6% in 2023.

The Ministry of Finance Malaysia released its ⁠Pre-Budget Statement (PBS) for Budget 2025. 

Shared on 30 July 2024 (Tuesday), the PBS is expected to be presented to Parliament on 18 October 2024. 

The issuance of the PBS looks to align with global best practices aimed at enhancing public discourse and transparency in the budget formulation process. This document communicates the Government’s priorities for Budget 2025, seeking to guide stakeholder inputs and proposals.

As stated, the economy has shown notable improvement, with growth rising from 2.9% in Q4 2023 to 4.2% in Q1 2024. This trend is further supported by an advanced estimate of 5.8% for Q2 2024. 

Key drivers include a recovery in exports, which grew by 5.2% in Q1 2024, compared to an 8.1% contraction in 2023, and strengthened private investment growth, which reached 9.2% in Q1 2024 versus 4.6% in 2023.

The PBS outlines three short-term priorities for Budget 2025 to achieve the goals of Ekonomi MADANI:

1. To raise the ceiling (in terms of restructuring the economy towards greater competitiveness and higher value-added activities);
2. To raise the floor (in terms of improving quality of life and inclusiveness of opportunities); and
3. To strengthen governance and public delivery.

The PBS also introduced the theme of 'Ekonomi MADANI: Negara Makmur, Rakyat Sejahtera' to guide the national consultation process for Budget 2025, inviting feedback from all sectors of society.

YB Datuk Seri Amir Hamzah Azizan, Minister of Finance II, highlighted at the Pre-Budget 2025 Dialogue with civil servants: "The Government welcomes suggestions from the rakyat and businesses for Budget 2025, particularly proposals to accelerate the implementation of Ekonomi MADANI and to build on the current positive growth momentum."

YB Datuk Seri Amir also affirmed the Ministry’s commitment to advancing fiscal reforms under Budget 2025, in line with the medium-term objectives of the Fiscal Responsibility Act. 

These reforms aim to reduce deficits and manage debt more sustainably while ensuring fiscal policy supports private sector-led growth.

The budget consultation process began on 9 July 2024, chaired by Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim. The inaugural consultation saw participation from over 400 representatives from government agencies, the private sector, academia, NGOs, and CSOs. Further nationwide consultations will follow in the coming weeks.

READ MORE: Median monthly wages in Malaysia's formal sector rose to RM2,844 in March 2024: DOSM

Lead image and Infographics / Prime Minister's Department Malaysia Facebook