KUALA LUMPUR — Malaysia on Friday unveiled a scaled-back spending plan for the year despite a sharply slowing economy as Prime Minister Anwar Ibrahim focuses on narrowing the budget deficit.
Here are some highlights from the new 2023 budget:
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BUDGET
* 2023 expenditure seen at 386.1 billion ringgit ($87.11 billion), lower than 395.2 billion ringgit in 2022
* 2023 revenue seen at 291.5 billion ringgit, lower than 294.4 bln ringgit in 2022
* Operating expenditure seen at 289.1 billion ringgit; development expenditure at 97 billion ringgit
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* State oil company Petronas estimated to pay dividend of 40 billion ringgit in 2023, lower than 50 billion ringgit in 2022
* Petroleum-related revenue to decline as crude oil price seen at $80 per barrel
* Government seeks to widen revenue base to achieve sustainable revenue
ECONOMY
* 2023 economic growth seen at about 4.5%, moderating from 8.7% in 2022
* 2023 gross exports seen up 1.6%, down sharply from 25% growth in 2022
* 2023 gross imports seen increasing 1.1% after a 31.3% rise in 2022
* 2023 current account surplus seen at 55.2 billion ringgit
* Inflation projected at 2.8-3.8% in 2023
DEFICIT
* 2023 fiscal deficit seen at 5% versus 5.6% in 2022
* Fiscal deficit expected to reach 3.2% at end of 2025
POLICY
* Malaysia to introduce a luxury goods tax this year and look into introducing capital gains tax in line with international standards.
* Government to provide counter-cyclical policy support and expedite structural reforms
* Efforts to be intensified to position Malaysia as a major investment destination
* Malaysia to improve efficiency of tax system and broaden tax base
* Prime Minister Anwar vows to expedite reforms and strengthen social safety net ($1 = 4.4325 ringgit) (Reporting by A. Ananthalakshmi Editing by Ed Davies)
