Malaysia 2024 Federal Budget Preview

A budget to achieve fiscal sustainability and inclusivity

Budget 2024 is set to realise the Malaysia MADANI economic framework and to accelerate the 12th Malaysia Plan (12MP) (2021-2025) Mid-Term Review (MTR)

  • MADANI Economy: The second federal budget by the current administration is expected to realise the Malaysia MADANI policy framework and slogan introduced by YAB Dato’ Seri Anwar Ibrahim, Prime Minister and the Minister of Finance. The budget will further translate the MADANI concept into policy action, focusing on sustainability, care, compassion, respect, innovation, prosperity and trust. This is also to ensure that the economy is able to withstand the impact of a potential global economic slowdown brought by the higher interest rate environment in the advanced economies to combat elevated inflation, the ongoing Russia-Ukraine war, escalation in geopolitical tensions, food security and climate change.
  • Accelerating 12MP development: Under the recently revised 12MP MTR, the government has increased the development spending ceiling by an extra RM15.0b, bringing the total allocation of development expenditure projected to RM415.0b over the 12MP period from 2021 until 2025. So far, the government have spent RM135.8b in 2021-2022, while RM97.0b was allocated under the revised Budget 2023. The remaining balance of RM182.2b is expected to be allocated at an average of RM91.1b per annum for the remaining two years of the 12MP. The bulk of the development spending allocated for the remaining period is expected to be spent on infrastructure and transportation projects such as the rollout of MRT3 and the newly announced Bayan Lepas LRT. This also includes upgrading schools, hospitals, clinics, and roads and focusing on the development of Sabah and Sarawak.