KUALA LUMPUR – Budget 2025 lacks of clarity and details for investors and the business community, the opposition said in response to the federal government’s spending plan tabled in Parliament today.
Bersatu vice-president Datuk Radzi Jidin said the proposed expansion of the sales and services tax’s (SST) scope was an example, where Prime Minister Datuk Seri Anwar Ibrahim failed to propose a tax hike rate, nor did he say which industries would be affected.
The Perikatan Nasional (PN) politician also saw Anwar’s announcement on the RON95 subsidy rationalisation set to take place in the middle of next year also lacked details on implementation.
“There is no clear economic framework or strategy for the country’s economy next year.
“It’s not just (the lack of clarity) with the RON95 targeted subsidy, the SST scope expansion, too, was unclear, as was the announcement to increase the minimum wage to RM1,700.
“People need details because they have to plan their businesses with these economic policy changes,” Radzi, who is Putrajaya MP, said at a press conference in Parliament.
Anwar, who is also finance minister, tabled Budget 2025 which has a total allocation of RM421 billion, an increase of 3.3% for 2024. Anwar had announced that to increase government revenue, Putrajaya would widen the scope of SST beginning May 1, 2025, excluding its application on necessities such as food.
He also said the government will discontinue the blanket subsidy for RON95 petrol which the rich and foreigners enjoyed, and replace it with a targeted approach to benefit 85% of the population.
This will allow the government to save RM8 billion which can be used to improve education, healthcare and transportation.
Additionally, Anwar also said that the government agreed to increase the minimum wageRM1,500 to RM1,700 beginning in February 2025, and August 2025 for businesses with less than five employees. – October 18, 2024