PETALING JAYA: Malaysians from all segments of society will receive help even as the country braces itself to weather the challenging global economy next year, says Tengku Datuk Seri Zafrul Abdul Aziz.
Despite the expected slowdown in 2023, urgent action is needed to ensure a bright future for the younger generation, the Finance Minister said.
“Budget 2023 will offer comprehensive aid not just for the B40 (bottom 40% households), but also the M40 (middle 40%), women, youth, the disabled and other segments of society,” he said of the country’s final budget before the next general election.
Themed “Keluarga Malaysia, Makmur Sejahtera” (A Prosperous Malaysian Family), Budget 2023 has a RM372.3bil expenditure, the biggest in the country’s history, surpassing Budget 2022 that previously held that distinction with RM332.1bil.
Tengku Zafrul described Budget 2023 as an inclusive one that can be characterised by three “Rs” – responsive, responsible and reformist.
Among the highlights of the budget was the increased aid payment under Bantuan Keluarga Malaysia (BKM) for lower-income earners who are struggling to cope with rising prices.
Middle-income earners were not left out. There is a two percentage-point reduction in income tax – from 21% to 19% – for Malaysians with taxable income ranging from RM50,000 to RM100,000.
The budget also targets the country’s youth, with a RM305mil allocation for them to apply for loans under BSN and Majlis Amanah Rakyat (Mara) to start businesses.
Youth will also get to enjoy an extension of the Pakej Remaja Keluarga Malaysia (Malaysian Family Youth Package) initiative until April next year.
To help women return to the workforce after a career break, Tengku Zafrul proposed a tax exemption on income received from next year until 2028.
Women will also benefit from a RM235mil fund managed by various agencies including Mara, for entrepreneurs to improve marketing strategies for their businesses.
Tengku Zafrul said that Budget 2023, while expansionary, was also a responsible one. He said it would be balanced with new fiscal measures to achieve sustainable government finances in the long run.
“Budget 2023 is also reformist, by taking the opportunity to change the country’s development landscape so that it is more inclusive and sustainable.”
With government revenue next year projected at RM272.6bil – up from an estimated RM234.01bil this year – Tengku Zafrul said the fiscal deficit is projected to fall to 5.5% of gross domestic product (GDP) compared to 5.8% last year.
“The government will step up efforts to improve the country’s finances in the medium term to achieve a targeted deficit of 3.5% of GDP as set under the 12th Malaysia Plan,” he said.
