The government has pledged to continue its financial commitment to national strategic projects in transport such as the light rail transit and the mass rapid transit, according to the revised 2023 Economic and Fiscal Outlook report.

Putrajaya pledges continued financial support in strategic transport projects in 2023

The Malaysian economy is expected to grow by 4.5% to RM1.57 trillion this year, supported by stable domestic demand, mainly from household spending, in line with the recovery in the labour market, according to the government’s revised 2023 Economic and Fiscal Outlook report.

Malaysia’s 2023 GDP growth seen moderating to 4.5% amid softening global economy

The government said it is exploring options to efficiently manage future pension obligations, including introducing defined contribution schemes.

Given that Malaysia is now an ageing nation by the United Nations definition, pension obligations are expected to continue to increase, according to the Finance Ministry's revised 2023 Economic and Fiscal Outlook report.

Govt exploring defined contribution scheme to manage future pension obligations

KUALA LUMPUR (Feb 24): The Federal Government’s debt is estimated to reach around 62% of gross domestic products (GDP) by end-2023, up from 60.4% or RM1.08 trillion last year, as Putrajaya continues to borrow for the financing of development programmes and projects under the 12th Malaysia Plan, and also as the redemption of 1Malaysia Development Bhd (1MDB) bonds mature in March.

Fed govt debt likely to rise to 62% of GDP by end-2023 on higher borrowings to fund 12MP, 1MDB bond redemption

Petroliam Nasional Bhd (Petronas) is expected to pay about RM40 billion in dividends to the government in 2023, slightly higher than the previous Budget 2023's headline RM35 billion.

Petronas to contribute RM40b dividend payout to govt in 2023

The government has estimated that operating expenditure (OE) in 2023 will decline by 1.2% to RM289.1 billion from RM292.7 billion in 2022, primarily due to lower subsidy allocations as commodity prices are expected to moderate while the targeted subsidy mechanism is gradually implemented.

The RM289.1 billion estimated OE is 15.3% of the gross domestic product, according to the Finance Ministry’s revised 2023 Economic & Fiscal Outlook report.

Govt operating expenditure falls 1.2% to RM289 bil in 2023 on lower subsidy allocations

The government expects to be able to generate higher revenue of RM291.5 billion this year, mainly supported by a further growth of 6.9% in direct tax collection, thanks to improved corporate earnings prospects and “continuous efforts in enhancing auditing and tax compliance”.

With a budgeted expenditure of RM386.14 billion, the government is expecting a fiscal deficit of RM93.94 billion, equivalent to 5% of gross domestic product (GDP) in 2023, down from RM99.48 billion (5.6%) in 2022 and RM98.74 billion (6.4%) in 2021, according to the revised 2023 Economic and Fiscal Outlook report.

Govt sees higher direct tax collection supporting 2023 revenue, expects 5% fiscal deficit

KUALA LUMPUR (Feb 24): Malaysia’s inflation rate is expected to rise to between 2.8% and 3.8% in 2023 amid slower economic prospects and stable commodity prices, according to the Ministry of Finance (MOF)’s revised Economic and Fiscal Outlook 2023 report.

Malaysia’s 2023 inflation seen at 2.8%-3.8%

The government has budgeted a slightly smaller amount for operating expenditure (OE) in 2023 due mainly to the expectation of less money required for subsidies.

Some RM272.34 billion has been allocated for 2023, which is 4.3% lower compared with RM285.7 billion in 2022 while it was RM231.5 billion in 2021. The 2023 OE is 15% of GDP.

Govt operating expenditure falls 4.3% despite 'subsidies & social aid' allocation shrinking by 28.7%

The labour market is anticipated to improve in 2023, with the unemployment rate forecasted to reduce to 3.5%-3.7%, according to the Economic Report released by the Ministry of Finance.

Unemployment in 2023 seen lower at 3.5%-3.7%

KUALA LUMPUR (Oct 7): The Malaysian government will still spend more than it earns in 2023 due partly to higher emolument for civil servants and debt service charges, expecting a budget deficit of RM99.07 billion, or 5.5% to gross development product (GDP).

Budget deficit in 2023 only about RM400 mil less than record high in 2022

KUALA LUMPUR (Oct 7): The government has reduced the allocation of subsidy and social assistance to RM42 billion in Budget 2023 compared with RM58.9 billion in 2022.

However, the Ministry of Finance has revealed over the months that the country’s susbidy bill has ballooned to RM77 billion in 2022.

Lower subsidy and social aids at RM42 bil in 2023 amid expectation of lower oil prices

Malaysia’s economic growth in 2022 could land higher than initial estimates at 6.5%-7%, before slowing to 4%-5% in 2023, said the Ministry of Finance in its 2023 Economic Outlook report.

Malaysia’s economic growth expected to ease to 4%-5% in 2023

The Ministry of Finance has said investors are expected to remain cautious following the US Federal Reserve's indication of further interest rate hikes to curb high inflation.

MOF: Fed's hawkish stance may undermine Malaysian equities

South Korea's suspended President Yoon Suk Yeol did not respond on Wednesday to a second summons by anti-corruption authorities who, along with prosecutors, are investigating his short-lived martial law decree issued early this month.

South Korea's Yoon defies second agency summons over martial law

China approved a value-added tax (VAT) law on Wednesday to take effect on Jan 1, 2026, the official Xinhua said, bringing into one document previous regulations that have included exempting items from the tax.

China approves value-added tax law, taking effect in 2026

The new geopolitics after the first Cold War undermines peace, sustainability and human development. Hegemonic priorities continue to threaten humanity’s well-being and prospects for progress.

End of the first Cold War

The end of the first Cold War has been interpreted in va...

My Say: New geopolitics worse for Global South

President Joe Biden signed 50 bills into law on Tuesday that include making the bald eagle the country's official bird and one that stops members of Congress from collecting their pensions if convicted of crimes.

Biden signs 50 bills into law, makes bald eagle the country's official bird

China refrained from cutting the interest rate and drained the most cash since 2014 with a one-year policy tool, keeping its powder dry ahead of possible escalation in trade tensions with the US next year.

China keeps key rate steady as it withdraws most cash since 2014

NEWS: Notti has its paw in the door of the pet food industry

The King and Queen of Malaysia, Sultan Ibrahim Sultan Iskandar and Raja Zarith Sofiah, have extended their Christmas greetings to all Malaysians who are celebrating.

King, Queen extend Christmas greetings

The government has initiated an administrative (sunset) review of anti-dumping duties on imports of cold rolled coils of iron, or non-alloy steel, and of width more than 1,300mm, originating or exported from China, South Korea, Japan, and Vietnam.

Govt initiates sunset review of anti-dumping duties for iron or non-alloy steel cold rolled coils

A leading indicator of Japan's service-sector inflation rose to 3.0% in November, accelerating for a second straight month, data showed on Wednesday, backing up the central bank's view that rising wages are prodding more firms to pass on higher costs.

Japan corporate service inflation rises, bolsters BOJ rate-hike odds

Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition from China raises questions about whether they can make it work in time.

Honda, Nissan tie-up requires something neither can spare: time

Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition from China raises questions about whether they can make it work in time.

China refrained from cutting the interest rate and drained the most cash since 2014 with a one-year policy tool, keeping its powder dry ahead of possible escalation in trade tensions with the US next year.

The government has initiated an administrative (sunset) review of anti-dumping duties on imports of cold rolled coils of iron, or non-alloy steel, and of width more than 1,300mm, originating or exported from China, South Korea, Japan, and Vietnam.

The King and Queen of Malaysia, Sultan Ibrahim Sultan Iskandar and Raja Zarith Sofiah, have extended their Christmas greetings to all Malaysians who are celebrating.

Apple has asked to participate in Google's upcoming US antitrust trial over online search, saying it cannot rely on Google to defend revenue-sharing agreements that send the iPhone maker billions of dollars each year for making Google the default search engine on its Safari browser.

Apple seeks to defend Google's billion-dollar payments in search case

China approved a value-added tax (VAT) law on Wednesday to take effect on Jan 1, 2026, the official Xinhua said, bringing into one document previous regulations that have included exempting items from the tax.

President Joe Biden signed 50 bills into law on Tuesday that include making the bald eagle the country's official bird and one that stops members of Congress from collecting their pensions if convicted of crimes.

A leading indicator of Japan's service-sector inflation rose to 3.0% in November, accelerating for a second straight month, data showed on Wednesday, backing up the central bank's view that rising wages are prodding more firms to pass on higher costs.

The new geopolitics after the first Cold War undermines peace, sustainability and human development. Hegemonic priorities continue to threaten humanity’s well-being and prospects for progress.

<h3>End of the first Cold War</h3>

The end of the first Cold War has been interpreted in va...

South Korea's suspended President Yoon Suk Yeol did not respond on Wednesday to a second summons by anti-corruption authorities who, along with prosecutors, are investigating his short-lived martial law decree issued early this month.

Economic Report 2022/2023

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Economic Report 2022/2023

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