THE Finance Ministry says it has been monitoring the overall performance of Budget 2024 through the Madani Monitoring Unit.
This includes 376 strategic initiatives with an estimated allocation of RM100.2bil, of which RM30bil represents financing guarantees.
As of end-July 2024, about RM20.1bil was spent to implement 305 initiatives, of which a total of RM16.9bil was for the implementation of 50 high-impact initiatives, benefitting the rakyat.
The Finance Ministry outlined three main focus areas, with the first being good governance for service agility.
“In assessing the impact of various initiatives, several studies such as public expenditure review and tax reforms, as well as addressing inequality in Malaysia have been conducted on the need of institutional reforms to address key challenges.
“These studies include enhancing revenue sustainability, strengthening social protection, improving governance of government-linked companies and managing national debt,” the Finance Ministry said in its Economic Outlook 2025 report.
The second focus area is the restructuring of the economy to boost growth.
The ministry said Budget 2024 allocated RM200mil as seed funding, aimed at increasing value-added in the manufacturing sector by 6.5% annually or reaching RM587.5bil by 2030.
This allocation is targeted to catalyse the inflow of investments amounting to RM95bil by 2030.
The government also established the RM2bil National Energy Transition Facility. The facility is targeted to draw in investments that will shift Malaysia’s energy industry towards a high-value green economy.
Meanwhile, the third focus area is raising the rakyat’s standard of living.
Among the measures undertaken were the cash transfer programmes, Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara).
STR involves the allocation of RM8bil, benefitting 8.5 million recipients in 2024. Allocation for Sara, on the other hand, rose to RM740mil from RM130mil, benefitting around 810,000 recipients.
Elaborating on the strategic initiatives for Budget 2025, the Finance Ministry said the budget will continue to emphasise “Raising the Ceiling” by transforming the economy and “Raising the Floor” by improving quality of life as well as reforming the public sector.
Under the “Raising the Ceiling” strategy, the focus will be on improving Malaysia’s competitiveness to make it a “world-class investment destination”, laying the foundation for a digital and innovation-led economy as well as making the country a global leader in Islamic economy.
It also seeks to make micro, small and medium enterprises regional champions and help the country achieve economics of sustainability.
