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Budget 2023 is comprehensive, disciplined and forward-thinking, with a focus on reforms to build resilience and weather uncertainties amidst an increasingly challenging global economic and geopolitical outlook. The Budget also lays the foundation for future growth and competitiveness in strategic areas, such as sustainability and digitalisation.
The Budget was unveiled against the backdrop of a projected national economic growth of between 6.5% and 7% this year, and between 4% and 5% in 2023. The Budget 2023 allocation is 12.1% higher than Budget 2022, with an increase from RM332.1b to RM372.3b.
Budget 2023, themed “Keluarga Malaysia: Makmur Bersama”, focuses on incentives and financing for the B40 and M40 categories, youth, women, the unemployed and entrepreneurs.
The key revenue-raising measures announced were the implementation of the 15% global minimum tax and Qualified Domestic Minimum Top-up Tax (QDMTT) in 2024, e-invoicing, potential carbon taxes and increased customs enforcement. Where relevant, appropriate transitional rules should be developed to ensure businesses have adequate time to study the impact and prepare for the implementation of such measures. It is also important that these measures be balanced with initiatives to maintain Malaysia’s attractiveness as an investment destination.
Whilst anticipating a potentially challenging outlook in the near term, Budget 2023 seeks to further Malaysia's economic recovery post-pandemic, continue fiscal reforms and build resilience and sustainable growth for the future.
In formulating Budget 2023, we note a continuing trend of consultation, focus group discussions and engagement by the Ministry of Finance (MOF), including the publication of a Pre-Budget Statement and several Public Consultation Papers. This is consistent with international best practices and helps ensure that the budget proposals take into account the views of a diverse range of stakeholders.