Bonus for civil servants
Anwar ended the tabling by announcing a special bonus of RM500 for all civil servants below Jusa Grade 56 including contract workers.
The special payment will also be given to all government retirees, including pensioned and non-pensioned veterans, amounting to RM250 ringgit.
This assistance will be paid out in February 2025.
Earlier this year, Anwar announced a new pay scheme that would see civil servants receive raises of as much as 15 per cent in stages starting from December
More funding for Islamic affairs
Anwar says the government will allocate RM2 billion for Islamic affairs in the country in 2025.
He said this will include RM150 million for the Department of Islamic Development (Jakim) to maintain religious schools across the country.
Funds will also go towards adding another 1,500 KAFA teachers to support Islamic religious education.
Go for National Service
The National Service Training Programme 3.0 (PLKN 3.0) will proceed as a pilot project through an allocation of RM50 million for the Ministry of Defence.
The Royal Malaysia Police (PDRM) and other uniformed agencies will also be involved in conducting the programme together with Akademi Kenegaraan.
Cheaper students’ travel
Anwar says Prasarana will provide van services for children to travel to school from selected train stations at a fare of 50 sen per trip.
Pilots for this scheme will be conducted at the LRT Sri Rampai and LRT Melati stations.
The prime minister also says the government will provide free rides on the BAS.My stage bus service for all university, polytechnic, community college, and matriculation students nationwide
Helping new home-buyers
The government will assist first-time home owners by offering tax relief of up to RM7,000 on their loan interest payments.
The maximum relief will be extended to buyers of homes valued at up to RM500,000 while those buying residential property between RM500,001 and RM750,000 will get tax relief of up to RM5,000.
This relief will be offered for three consecutive assessment years on sale and purchase agreements finalised between January 1, 2025, and December 31, 2027.
A file photograph shows a general view of the People’s Housing Project (PPR) in Kota Damansara on July 18,2023. — Picture by Ahmad Zamzahuri
A file photograph shows a general view of the People’s Housing Project (PPR) in Kota Damansara on July 18,2023. — Picture by Ahmad Zamzahuri
Bitter news for sugary drinks
For the “War on Sugar”, Anwar says the government plans to gradually increase the excise duty on sugary drinks starting from January 1 by 40 sen per litre, from the current 50 sen.
The revenue will be used to treat diabetes in the country as well as to provide peritoneal dialysis treatment for end-stage kidney patients in the country in addition to those in Felda settlements.
“Malaysia is among the most obese countries in Southeast Asia. And one of the main enemies of non-communicable diseases is sugar.”
Minimum wage up
The government plans to increase the country’s minimum wage from RM1,500 currently to RM1,700 per month starting Feb 1, Anwar said.
The prime minister said the country’s economic reforms could not be considered successful until Malaysians begin enjoying higher incomes.
However, he said deferments of the wage floor increase would be granted to businesses with fewer than five employees, which will get an additional six months until August to comply.
A file photograph shows delivery workers outside a store in Meru, Ipoh, on June 19, 2024. — Picture by Farhan Najib
A file photograph shows delivery workers outside a store in Meru, Ipoh, on June 19, 2024. — Picture by Farhan Najib
Increased cash handouts
Anwar is proposing to increase allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) to a combined RM13 billion, a 30 per cent increase from this year and reaching the highest level in the country’s history.
The prime minister said increase will continue to benefit nine million recipients, equivalent to 60 per cent of the adult population in the country.
More Malay reserve land
Anwar proposed an unprecedented allocation of 50 acres from the Bandar Malaysia as Malay reserve land, saying this would be developed into affordable homes, student accommodation, and commercial buildings under PNB and PHB.
“This is just the beginning of identifying suitable government land to ensure that urban development does not ignore long-term socio-economic balance.”
More money for flood readiness
Anwar announced an additional allocation of RM150 million for the National Disaster Management Agency (Nadma) and local authorities to ensure better preparation for floods in the country.
The prime minister noted recent flooding incidents affecting Kuala Lumpur, as well as the sinkhole incident in August that involved an Indian visitor to the country.
Roads in the city near Jalan Sultan Azlan Shah was submerged by flash floods following heavy rain on Aug 22. — Bernama pic
Roads in the city near Jalan Sultan Azlan Shah was submerged by flash floods following heavy rain on Aug 22. — Bernama pic
New tax on dividend income
The prime minister said the government will introduce a 2 per cent tax on dividends greater than RM100,000 annually for individuals, effective the 2025 assessment year.
Anwar said the proposal was to allow the Inland Revenue Department (LHDN) to expand its revenue base from just salaried workers and include the capital class.
However, he said exemption could be given for dividends from the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB0, unit trusts, and foreign dividends.
Subsidy retargetting to stop “ultra rich” from enjoying
Saying the special grant for Sarawak and Sabah had not been increased since 1969, Anwar pointed out that his government finally raised this to RM140 million to RM300 million this year. Next year, Anwar says this will be doubled to RM600 million.
Subsidies for boarding schools will be retargeted to eliminate financial assistance for the country’s top 15 per cent of income earners, with Anwar also saying that similar reforms will be made to the country’s public healthcare system.
“High-income groups should contribute to better healthcare services in government hospitals. The savings achieved can be used to fund medical devices for poor patients and to upgrade equipment in public hospitals and clinics.”
The government will proceed with rationalising the subsidy for RON95 petrol by the middle of 2025, but Anwar did not provide details of this plan beyond pledging that this would not affect 85 per cent of Malaysians.
The prime minister indicated that the government will be expanding taxation on “luxury” goods, giving salmon and avocado as examples.
Anwar is expected to present a budget of RM421 billion, the largest ever in the history of the country.
The prime minister began tabling at 4pm, thanking lawmakers for approving the constitutional amendment on the country’s citizenship laws yesterday before he began.
Prime Minister Datuk Seri Anwar Ibrahim displays a briefcase with a songket motif as he arrives in Parliament to table Budget 2025, in Kuala Lumpur on October 18, 2024. — Picture by Firdaus Latif
Prime Minister Datuk Seri Anwar Ibrahim displays a briefcase with a songket motif as he arrives in Parliament to table Budget 2025, in Kuala Lumpur on October 18, 2024. — Picture by Firdaus Latif
Prime Minister Datuk Seri Anwar Ibrahim will table Budget 2025 today, his third federal spending plan since leading an alliance dubbed the “national unity government” to power after the 15th general election.
Wearing a white Baju Melayu, Anwar left the Treasury around 3.15pm and arrived in Parliament just before 4pm, where he is scheduled to present the Budget.
Anwar, who is also the finance minister, carried a black file bag with a songket pattern embroidered with gold thread, containing Budget 2025 documents to Parliament.
The songket weave on the bag was produced by local designer Adiguru Rasiah Yusoff from Kampung Tikat Penambang, Kelantan, while the bag was designed by Chew Kai Hung from Penang.
In addition to the songket weaving on the outside, the bag also incorporates a sari combination for the inner lining.
The finance minister is expected to focus on increasing development spending while managing falling revenue and the fiscal deficit, amid the country’s economic recovery underpinned by a rising ringgit backed by his financial reforms.
Malay Mail will be updating this article with his announcements of new policies and initiatives… and maybe new taxes?
The tabling is scheduled for 4pm. Here’s where you can watch it “live”:
While waiting, read our curtainraiser for this year’s budget: