Tabled on 18 October 2024, Budget 2025 emphasises the theme "Revitalising the economy, generating change, prospering the Rakyat," leveraging positive economic sentiment.
Some key highlights include:
Investment and Trade
- Public-Private Partnerships: The government aims to boost private investment by RM78 billion through the Pelan Induk Kerjasama Awam-Swasta (PIKAS), targeting the creation of 900,000 jobs by 2030.
- Direct Domestic Investments: The GEAR-uP initiative will lead Government-Linked Investment Companies (GLICs) to invest RM120 billion over five years, with RM25 billion earmarked for the next year.
- Power Sector Investment: UEM Lestra and Tenaga Nasional Bhd (TNB) plan to invest RM16 billion to upgrade the grid and decarbonize industrial areas.
Sustainability Initiatives
- National Energy Transition Roadmap (NETR): An additional RM300 million allocated to NETR initiatives, increasing total funding from RM100 million to enhance the transition to sustainable energy sources.
- Carbon Tax: Set to be introduced on the iron and steel, and energy industries by 2026, with revenue directed toward funding green research and technology programs.
- Climate Adaptation: At least RM3.85 billion is allocated for flood mitigation and disaster preparedness projects, addressing the impacts of climate change.
Workforce Initiatives:
- Tax deductions of up to 50% for hiring women returning to the workforce.
- Implementation of flexible work arrangements and paid caregiver leave.
Personal Tax Relief:
- Increase in personal tax relief for education and medical insurance from RM3,000 to RM4,000.
- Expanded medical expenses deduction for self, spouse, and child up to RM10,000.
- Income tax exemption on childcare allowance now includes elderly care.
Support for First-Time Homebuyers:
- Reinstatement of tax relief on housing loan interest payments.
These initiatives reflect the government’s commitment to enhancing competitiveness, supporting entrepreneurship, and fostering sustainable development while addressing social welfare and environmental challenges.
Source: https://www.pwc.com/my/budget