Malaysian PM Anwar to spend billions in 5-year plan to reduce poverty, boost economic growth
- PM Anwar Ibrahim says poverty eradication, boosting exports of services and establishing an economy driven by the halal industry are key to his economic plans
- The new money would fund programmes aimed at increasing income among the poor, and also for areas including energy transition and digital industries
Malaysia will spend an extra US$3.2 billion on upgrading clinics, infrastructure and defence as well as boosting subsidies to the poor, Prime Minister Anwar Ibrahim has said, as he contends with slowing growth and stubbornly high inflation.
The government would also consider possibly reintroducing the controversial goods and services tax (GST), a minister said in a separate news conference, in a bid to broaden its revenue base without adding to the government’s 1 trillion ringgit (US$214 billion) debt pile.
Speaking on Monday at the midterm review of the 12th Malaysia plan (12MP) – a key document guiding economic development which is published every five years – Anwar said poverty eradication, boosting exports of services and establishing an economy driven by the halal industry and Islamic financing were also at the heart of his economic plans.
To achieve that, his administration will seek to spend an additional 15 billion ringgit (US$3.2 billion) between 2023 and 2025, according to Anwar, who is also finance minister.
“This increase is to raise our ability to fund priority sectors for the people besides improving on management standards and redistribution of subsidies to cover the needs of people’s basic needs,” Anwar told a special parliamentary meeting.