Malaysia to widen tax net and cut subsidies in 2025 as budget spending hits record

Malaysia plans to broaden its sales and services tax and reform fuel subsidies next year, as announced by Prime Minister Anwar Ibrahim. The 2025 budget includes a record $98 billion spending, aiming to reduce the fiscal deficit to 3.8% of GDP. Revenue growth is forecasted at 5.5%, while government debt is expected to remain steady at around 64% of GDP.