Advertisement
Malaysia
This Week in AsiaExplained

Explainer | Winners and losers of Malaysian PM Anwar Ibrahim’s first budget

  • Malaysia’s poorest, small businesses as well as middle-income earners are expected to benefit the most from Anwar Ibrahim’s first budget as PM
  • Meanwhile, high-income earners and Malaysia’s unregulated electronic cigarette and vaping sector could have the most to gripe about

Reading Time:3 minutes
Why you can trust SCMP
Malaysia’s Prime Minister and Finance Minister Anwar Ibrahim holds a briefcase containing his 2023 budget speech. Photo: AFP
Hadi Azmi
Malaysia’s Prime Minister Anwar Ibrahim announced the first budget of his administration on Friday, with giveaways for the poor and taxes aimed mainly at the rich, in an effort to help offset soaring inflation. So who will benefit, and will be hurt by the budget?

Winners

Malaysia’s poorest

Pledging to “end extreme poverty”, the government is allocating 750 million ringgit (US$169 million) to upskill workers under a pilot programme dubbed the People’s Income Initiative. To be launched on Sunday, the scheme will focus first on agriculture.

“Malaysia has advantages in terms of geography, climate and perfect accessibility to support the agricultural sector to continue to grow,” said its minister Rafizi Ramli.

This is alongside the 2.5 billion ringgit the government has set aside for direct cash aid for more than 400,000 recipients.

Small businesses

With the rise of gig workers, particularly in the food delivery sector, the government allocated 330 million ringgit for micro and small businesses with 10 million ringgit earmarked for poor families to start a motorcycle delivery business.

Advertisement

According to government statistics, almost 98 per cent of gig workers in these sectors are young.

The government says it will foot the bill for those eligible to get motorcycle licences, as well as bus, taxi and e-hailing certifications.

Advertisement

This is on top of 40 billion ringgit in loans and assistance under a variety of programmes aimed at the sector.

Malaysia’s government allocated 330 million ringgit for small businesses in PM Anwar Ibrahim’s first budget. Photo: Bloomberg/File
Malaysia’s government allocated 330 million ringgit for small businesses in PM Anwar Ibrahim’s first budget. Photo: Bloomberg/File
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x