RON95 subsidy rationalisationCertain income groups can expect changes in the RON95 fuel prices, as the government targets to remove blanket subsidies by mid-2025.
The subsidised RON95 will continue for 85% of the population.
The government is considering a mechanism where eligible Malaysians will scan their MyKads to pump subsidised petrol.
Blanket subsidies for diesel were removed in 2024, except in Sabah and Sarawak.
Taxation
Sales and services tax (SST) will be further expanded to more goods and services, with the detailed list to be announced early this month.
The expansion will include fee-based financial services and non-essential premium food items like avocados and salmon.
New no-smoking areas
Laundry shops and workplace buildings are listed as no-smoking areas following the enforcement of the Control of Smoking Products for Public Health Act 2024.
This brings the total number of areas gazetted as no-smoking areas to 28, including hospitals, clinics, government premises and educational institutions.
Public TransportKlang Valley folks can look forward to more public transport and accessibility next year, with the LRT Shah Alam Line (LRT 3) projected to commence operation in September.
The LRT line will connect residents from Johan Setia in Klang to Bandar Utama in Petaling Jaya.
It also has interchange stations at Bandar Utama for the MRT Kajang line and Glenmarie for the LRT Kelana Jaya line.
Prasarana Malaysia Bhd had said that daily ridership on the Rapid KL network may reach 1.4 million by the end of 2025.
Wage Reform
Starting Feb 1, the minimum wage for employees will increase from RM1,500 to RM1,700.
The adjustment is a strategy designed for the most basic workers, especially for the 4.35 million individuals currently earning below RM1,700.
War on sugar continues
Sugary drinks will become more expensive, as rates on excise duty on sugary drinks will increase to 90sen per litre starting on Jan 1.
Excise duty on sugary drinks was already increased to 50sen in January 2024 from 40sen previously.
This year will see an 80% rise in the excise tax, as part of the government’s ‘war on sugar’.
Malaysia has one of the highest obesity rates in South-East Asia, and sugar is one of the major culprits behind the rise in non-communicable diseases.
Asean
Malaysia officially takes over the Asean Chairmanship.
Under the theme “Inclusion and Sustainability”, Malaysia will host over 300 Asean meetings and summits throughout the year.
Among issues that will be raised during Malaysia’s chairmanship is the ongoing South China Sea dispute, the Myanmar crisis, food security and climate change.
The 20-year vision roadmap, Asean Community Vision 2045, will also be unveiled at the Asean Summit in Malaysia in May.Malaysia previously chaired Asean in 1977, 1997, 2005 and 2015.
