Highlights from updates on economic & fiscal outlook and revenue estimates 2024

KUALA LUMPUR: Following are the highlights from Updates on Economic & Fiscal Outlook and Revenue Estimates for 2024:

Unity govt allocates RM393.8 bln for Budget 2024, with 42.3 pct going to Finance, Education and Health Ministries

Malaysia’s economy to grow 4.0-5.0 pct next year, led by services sector

Social sector’s allocation is RM149.7 bln or 7.6 pct of GDP, followed by economy (RM66.7 bln), security (RM40.1 bln) and general administration (RM16.9 bln)

Subsidies and social assistance forecast at RM52.8 bln for 2024 or 17.4 pct of operating expenditure

Increased external uncertainties to pose risks to economic growth

Manufacturing sector to grow 4.2 pct in 2024 driven by better performance in export, domestic-oriented industries

Services, construction, mining and agriculture sectors to expand 5.6 pct, 6.8 pct, 2.7 pct and 1.2 pct respectively in 2024

Inflation rate forecast at between 2.1 pct and 3.6 pct in 2024

Gross exports set to grow by 5.1 pct in 2024, imports by 4.9 pct

Domestic demand forecast to expand 5.3 pct in 2024

Current account projected to post a surplus of RM62.2 bln or 3.2 pct of GNI

Unemployment rate in 2024 to return to pre-pandemic level of 3.4 pct

Federal Govt’s revenue collection in 2024 to grow 1.5 pct to RM307.6 bln, driven by higher tax collection

Petroleum income tax expected to record stable collection at RM21.7 bln on steady crude oil prices averaging US$85 per barrel

CPO projected to average RM4,000-RM4,500 per tonne in 2024 - Bernama