Malaysian Premier Anwar proposes record $98B budget

By Anadolu staff

ANKARA (AA) — Malaysia Prime Minister Anwar Ibrahim on Friday proposed a record annual budget of $98 billion for 2025 in parliament.

The budget proposed by Premier Anwar, who also serves as finance minister, announced an increase in salaries and retirement pensions for government employees, totals 421 billion Malaysian ringgit.

Presenting the budget in parliament, Anwar said that government has decided to not withdraw the subsidy on essential food items and that will continue.

"I would like to emphasize once again that the subsidy burden continues for 85% of the people. This means that the government will continue to bear subsidies estimated at 12 billion ringgit for the needs of 85% of the people," he said on X.

In the proposed budget, the government has also narrowed its fiscal deficit to 3.8% of gross domestic product for next year, also proposing 86 billion ringgit for developmental projects in the Southeast Asian country.

In the proposed budget, the government has decided not to impose sales tax on basic consumer goods, according to the state-run Bernama News Agency.

The Malaysian economy is forecast to expand by 4.5-5.5% in next year.

Meanwhile, Anwar announced a plan to introduce a new law for "house arrest" as an alternative form of punishment for some legal offenses.

*Writing by Islamuddin Sajid