Guaranteeing the successful implementation of the revised Malaysia Budget 2023 – formulated as “Belanjawan MADANI” – requires possessing the accountability and values needed to tackle current challenges that have been detrimental to socio-economic development.
These challenges, stated Prime Minister and Minister of Finance YAB Dato’ Seri Anwar bin Ibrahim, include a high debt burden; a decline in governance quality; global economic uncertainties; sluggish recovery of investments to pre-pandemic levels; and the impact of economic challenges such as increased inflation rate and unemployment rate on the rakyat.
“Belanjawan MADANI needs to have the capability to muster the strength and energy to forge a new direction.
“Ergo, I would like to use this opportunity to call upon political leaders, ministry leaders, civil servants, in addition to businesses and the ordinary citizens to believe that our country is capable of making that leap and be an example not only to our neighbouring countries in the region but the whole world too, and at the same time instil confidence among the rakyat,” he said when tabling the budget in the Dewan Rakyat sitting on 24 February 2023.
Under Budget 2023, a total of RM388.1 billion has been allocated for operating expenditure (RM289.1 billion) and development expenditure (RM99 billion, including RM2 billion in contingency savings).
The allocation for development expenditure at RM97 billion, in particular, is an increase from RM71.6 billion in the previous budget. This is due to greater emphasis on poverty eradication programmes, as well as public infrastructure and rural facilities improvements.
It is also in line with the Malaysian Government’s expansionary fiscal approach to support economic growth that benefits the rakyat. Together with efforts to carry out improvements and reforms within the government administration, the Prime Minister believed that Malaysia will be able to achieve or exceed projected gross domestic product (GDP) growth of 4.5 per cent this year.
“Sustainable economic development is essential as a future-proofing element that is ready to serve as a shield against any potential risks that may arise.
“A significant shift must be forged. A shift towards combating corruption that deprives people of the opportunity to enjoy a more meaningful life, towards good governance that reflects our principles in spending, which leads to empowerment and socio-economic mobility for all segments of society,” he said.
Themed “Building Malaysia Madani” (“Membangun Malaysia Madani”), Budget 2023 focuses on 12 main measures based on three pillars, namely:
- Inclusive and Sustainable Economic Growth;
- Institutional Reforms and Good Governance to Restore Confidence; and
- Combating Inequality Through Social Justice.
MALAYSIA BUDGET 2023 PILLARS AND MAIN MEASURES
| PILLARS | MAIN MEASURES |
| Inclusive and Sustainable Economic Growth | Fiscal SustainabilityFulfilling the Rakyat’s Economic NeedsFacing DisastersAchieving High-Impact Investments |
| Institutional Reforms and Good Governance to Restore Confidence | Public Sector ReformEmpowering Public-Private PartnershipPrioritising the Digital AgendaStrengthening the Role of Government Linked Companies and Agencies |
| Combating Inequality Through Social Justice | Eradicating Hardcore PoorMinimising Cost of LivingEnsuring Harmony and UnityProviding Quality Basic Amenities |
Source: Budget 2023 Speech by Prime Minister and Minister of Finance YAB Dato’ Seri Anwar bin Ibrahim, available at https://budget.mof.gov.my/en/budget2023/
References:
Ministry of Finance Malaysia. (2023). Budget 2023 Official Website. https://budget.mof.gov.my/en/budget2023/
PwC Malaysia. (2023). Budget 2023. https://www.pwc.com/my/en/issues/budget2023.html
The Edge Markets. (2023). Revised Budget 2023. https://budget.theedgemarkets.com/2023/budget/index.html
