Malaysia Budget 2023

On 7 October, the Malaysian Government presented the 2023 Budget in Parliament, themed “Strengthening Recovery and Facilitating Reforms towards Sustainability of Economic Resilience and Wellbeing of Keluarga Malaysia”.

The transition from recovery to reform initiatives is a key focus for the Budget 2023. The Budget 2023 focusses on 3 main priorities, i.e., Recovery, Resilience and Reform.

The Budget 2023’s theme aims to provide businesses and ordinary Malaysians with varying levels of support during the challenging period in a modernized economy, crafting on the principles of being responsive and responsible as well as prioritizing the rakyat and sustainable development.

Key Focus Areas 2023

The following are the 10 key focus areas of the Budget 2023 allocation:

RM55 billion for subsidies, aid and Bantuan Keluarga Malaysia;
RM55.6 billion for the education ministry;
RM36.1 billion for the health ministry;
RM45 billion for grants and loans for entrepreneurs;
RM15 billion for flood mitigation;
RM1.3 billion to boost 5G internet coverage nationwide;
Government Linked Companies and Government Linked Investment Companies to invest RM50 billion in the economy;
RM1.5 billion for increments and one-off aid for civil servants;
RM6.3 billion for Sabah and RM5.4 billion for Sarawak;
RM17.4 billion for the defence ministry, including RM4 billion to buy new assets.

Priorities and Strategies

PRIORITIES	STRATEGIES
RECOVERY: Reinforcing the Momentum of Economic Recovery	Building on growth, to create jobs and raise income
	Bolstering tourism and affected sectors post COVID-19
	Leveraging on comparative strength – Islamic economy
	Improving public service delivery and Ease of Doing Business
RESILIENCE: Strengthening Economic Resilience	Strengthening social protection, and targeting assistance to mitigate higher cost living
	Enhancing micro, small and medium-sized enterprise (“MSME”) competitiveness
	Boosting productivity including through digitalization
	Reducing disparities between regions and communities through inclusive development
	Ensuring food security
	Strengthening resilience of public health
REFORMS: Implementing Comprehensive Reforms	Enhancing liveability towards holistic wellbeing
	Catalyzing new growth areas and moving up the value chain
	Promoting green growth and sustainable development
	Enhancing governance and disaster risk management

Please Note:

Subsequent to the announcement of Budget 2023 on 7 October 2023, the Malaysian Parliament was dissolved on 10 October 2023, paving the way for the next General Elections. With the dissolution of Parliament, all bills (including Budget 2023) will be put on hold. Budget 2023 will have to be retabled once the new government has been formed. The new government is not bound by a budget tabled by the previous government.