Budget 2023: Malaysia banks on strong fundamentals, reforms amid external headwinds
KUALA LUMPUR — Riding on solid economic fundamentals and steady growth thus far in 2022, Malaysia is set to transition from recovery strategies to structural reforms to strengthen its economic resilience and improve people’s well-being through Budget 2023 on Friday (07 Oct).
At the same time, the country must keep on its toes amid external challenges mainly coming from China, the United States (US) and the United Kingdom
Finance Minister Tengku Zafrul Abdul Aziz has remarked that Malaysia’s economic growth may even surpass the official forecast of between 5.3 and 6.3 per cent in 2022 as the country saw faster growth in the second quarter at 8.9 per cent and a strong performance is expected in the third quarter.
Budget Goodies To Cushion Global Impact
However, he also warned that Malaysia will not be spared from the expected global economic slowdown in 2023, as all three of the world’s major economic drivers — Europe, China and the US — are expected to grow at a slower rate next year compared with this year.
Under this Budget 2023, households with income of RM1,169 will be able to enjoy electric bill subsidy up to RM40, Tengku Zafrul said.
“The current eligible income was RM980, with the change on the income eligibility.
“I hope the subsidy will benefit more rakyat,” he said in tabling Budget 2023 in Dewan Rakyat.
Tengku Zafrul also announced that the personal taxation rate will be reduced by 2 per cent on taxable income ranging from RM50,000 to RM100,000 for domiciled individuals.
“Taxable income range RM50,001 to RM70,000, the rate will be reduced from 13 per cent to 11 per cent.
“For the RM70,001 to RM100,000 range, it will go down from 21 per cent to 19 per cent.
“Those in the taxable income range of RM250,000-RM400,000 and in the RM400,000-RM600,000 range will be subject to a rate of 25 per cent,” the finance minister said.
Tengku Zafrul noted that this would allow tax savings of up to RM1,000 for the middle income group, and RM250 for the high income group. — NMH
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