Malaysia Budget 2024 Key Points – Powered by ChatGPT AI Chatbot
The Malaysian government has unveiled an expansive RM392 billion budget for 2024, seeking to balance economic recovery, fiscal consolidation and socio-economic upliftment. The 2024 fiscal plan sees increased allocations across healthcare, education, social protection, infrastructure development and agriculture.
Key focus areas include food security, rural development, digitalisation and transitioning towards a low-carbon economy. At the same time, the budget aims to strengthen public finances, with the fiscal deficit projected to reduce to 4.3% of GDP in 2024.
On the revenue side, the government has proposed new taxes on luxury goods and capital gains, while also expanding the scope of service tax. In line with post-pandemic recovery efforts, the budget has a strong emphasis on vulnerable groups, with sizeable allocations for cash aid, welfare of the disabled, indigenous communities, women’s socio-economic participation and upskilling programs. Major infrastructure upgrades have been announced, spanning roads, public transport, ports, airports, utilities and digital connectivity.
The 2024 blueprint charts a prudent yet progressive vision, balancing targeted subsidy reforms with expanded social protection, investor-friendly policies with domestic growth objectives, and fiscal consolidation with an inclusive pro-people agenda.
You can ask anything to our AI Chatbot about the Budget 2024 at the bottom of this article.
Economy and Fiscal Position
- GDP growth projected at 4-5% in 2024
- Inflation rate at 2% in August 2023
- Unemployment rate at 3.4% in August 2023
- Fiscal deficit targeted at 4.3% of GDP in 2024
- Government revenue estimated at RM307.6 billion in 2024
- Government operating expenditure at RM303.8 billion
- Development expenditure at RM90 billion
- Contingency savings of RM2 billion
Taxes and Subsidies
- Service tax increased from 6% to 8%
- High Value Goods Tax of 5-10% introduced on luxury items like jewelry
- Targeted subsidies to be introduced, savings used to increase cash aid
- Capital gains tax of 10% on disposal of non-listed local companies
- Global minimum tax implementation in 2025
- Tax incentives for angel investors extended until 2026
- 5-year tax exemption for Islamic finance in Labuan
Social Welfare and Assistance
- Cash aid under BSH increased from RM3,100 to RM3,700
- RM500 monthly cash aid for youths under BSH
- B40 healthcare scheme extended with RM100 million allocation
- Industrial building allowance for private nursing homes
- Additional RM1.2 billion for welfare of disabled
- Housewives’ EPF contribution scheme continued with RM50 million
Healthcare
- MOH allocated RM41.2 billion, increased by RM4.9 billion
- RM938 million for USIM Teaching Hospital Johor
- Upgrades for Hospital Raja Perempuan Zainab II and Hosp Sultan Abdul Aziz Shah
- 150 new 1Malaysia clinics and upgrades for 400 old clinics
- Excise duty on sugary drinks increased to 50 sen/liter
Education and Human Capital
- RM58.7 billion allocated to Ministry of Education
- RM6.8 billion for TVET education
- RM510 million for R&D funds
- PTPTN loan discounts 10-15% from Oct 2023 to March 2024
- STEM incentives and allocations in schools
Infrastructure and Transportation
- RM97 million to support stage buses in rural areas
- 150 electric buses to be acquired with RM600 million allocation
- LRT3 rail project resumed with RM4.7 billion allocation
- RM10 billion for Penang LRT project
- Port Klang and maritime transport upgrades
Agriculture and Food Security
- RM2.6 billion for agriculture subsidies and incentives
- Floor price of paddy increased to RM1,300 per metric tonne
- Food production boost under Food Security Reinforcement Programme
- RM400 million to optimize agricultural land use
