Malaysia Announces 2024 Budget Focused on Economic Reforms and Reducing Fiscal Deficit
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Malaysia will cut subsidies and tax luxury goods as part of economic reforms in the 2024 budget to tighten finances.
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Prime Minister Anwar Ibrahim announced the 2024 budget of 393.8 billion ringgit ($83.3 billion) in Parliament, aimed at fixing economic imbalances and helping people cope with rising costs.
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Growth is likely to slip to 4% this year but could reach nearly 5% in 2024. Malaysia's high subsidies and low taxes are unsustainable.
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Luxury goods like jewelry and watches will be taxed 5-10% starting next year. A 10% capital gains tax and increased services tax will also be introduced.
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The moves will help reduce Malaysia's fiscal deficit to 4.3% of GDP in 2024 from 5% this year. Subsidy savings will fund increased cash aid and wages.