KUALA LUMPUR, Oct. 18 (Xinhua) -- Malaysian Prime Minister Anwar Ibrahim unveiled an expansionary budget for 2025 on Friday, the biggest in the country's history, aimed at boosting economic growth and facilitating its ambition of transforming into a regional economic powerhouse.
The budget allocates 421 billion ringgit (97.81 billion U.S. dollars), aiming to fund initiatives that focus on attracting high-quality investments, stimulating business opportunities as well as undertaking projects for the well being of the people and relieving the burden of cost of living while ensuring their access to affordable essential goods and services, Anwar said in his speech to parliament.
Of the total, 335 billion ringgit is for operating expenses, and 86 billion ringgit for development.
Measures aimed at helping the people cope with the cost of living include 12 billion ringgit in subsidies that will be applied to various good and services to address the high cost of living.
Additionally the country's minimum wage will be raised from 1,500 ringgit to 1,700 ringgit per month, effective on Feb. 1 next year, he said.
Anwar, who is also finance minister, said a new investment incentive framework will be introduced, including a strategic investment fund worth 1 billion ringgit aimed at enhancing the capacity of local talent and encouraging high-value activities including in the semiconductor and artificial intelligence (AI) sectors.
To enhance the diversification of the electrical and electronics sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, he noted that tax incentives for boosting exports will be expanded to include IC design activities.
Anwar said the government has approved Forest City as a duty-free island to promote tourism and stimulate local economic activities, and a tax incentive package for the Forest City Special Financial Zone has been introduced to encourage financial services, including global business services and fintech. (1 ringgit equals 0.23 U.S. dollars) ■
