Budget 2024: Malaysia presents tighter budget for 2024

KUALA LUMPUR: Malaysia on Friday unveiled a tighter budget for 2024, focusing on subsidy rationalisation to strengthen its fiscal position as an economic slowdown puts a strain on government spending.

Here are some highlights from the planned budget:

BUDGET

* Expenditure seen at RM393.8bil, lower than RM397.1bil in 2023

* 2024 development budget seen at RM90bil

* 2024 operating expenditure seen at 303.8bil

* Govt to spend RM52.8bil on subsidies and social assistance in 2024

* Revenue collection for 2024 seen at RM307.6bil, from RM303.2bil in 2023

* Petronas dividend estimated at 32 billion ringgit in 2024, lower than 40 billion ringgit in 2023

ECONOMIC GROWTH

* 2023 growth lowered to 4% from 4%-5%

* 2024 growth seen at 4%-5%

* Domestic demand seen driving growth

* 2024 export growth seen at 5.1% vs a 7.8% drop in 2023

* Headline inflation seen at 2.1%-3.6% for 2024 vs 2.5%-3% for 2023

* Economic growth in 2024-2026 seen averaging 4.8%, assuming oil prices at $80 per barrel

FISCAL TARGETS

* 2024 fiscal deficit forecast at 4.3% of GDP vs 5% in 2023

* Medium term deficit target at 3%

* 2024 current account surplus seen at RM62.2bil

MONETARY STANCE & RINGGIT

* Current monetary policy stance remains accommodative and supportive of economy

* Monetary policy to be guided by mandate of achieving price stability and sustainable economic growth

* Ringgit currency seen supported by end of U.S. rate hikes and China's economic recovery - Reuters