2023 Budget and Economic Prospects
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The Budget 2023 set a course for sustaining economic recovery amid a small effort to resume the fiscal consolidation path for restoring the health of public finances.
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Ministry of Finance (MOF) expects the economy to pace slower to 4.0%-5.0% in 2023 from estimated 6.5%-7.0% in 2022 due to:
i. Slower domestic demand; and
ii. Slower exports on weaker global demand and lower energy and commodity prices.
2023 Budget – Measures and Initiatives
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The fiscal policy remains expansionary to support continued economic growth while undertaking economic reforms.
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FOR KELUARGA MALAYSIA: Financial assistance and personal tax reduction to ease the financial burden of targeted households.
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FOR BUSINESSES AND INVESTMENT: Incentives to attract investment; financing and loan facilities for SMEs; allocation for public infrastructure and utilities.
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FOR SUSTAINABILITY: Green initiatives and Environmental, Social and Governance (ESG); financing for sustainable Development; and 5G infrastructure.
