The Malaysian economy is expected to grow by 4.5% to RM1.57 trillion this year, supported by stable domestic demand, mainly from household spending, in line with the recovery in the labour market, according to the government’s revised 2023 Economic and Fiscal Outlook report.

Malaysia’s 2023 GDP growth seen moderating to 4.5% amid softening global economy

The government has pledged to continue its financial commitment to national strategic projects in transport such as the light rail transit and the mass rapid transit, according to the revised 2023 Economic and Fiscal Outlook report.

Putrajaya pledges continued financial support in strategic transport projects in 2023

The government said it is exploring options to efficiently manage future pension obligations, including introducing defined contribution schemes.

Given that Malaysia is now an ageing nation by the United Nations definition, pension obligations are expected to continue to increase, according to the Finance Ministry's revised 2023 Economic and Fiscal Outlook report.

Govt exploring defined contribution scheme to manage future pension obligations

Petroliam Nasional Bhd (Petronas) is expected to pay about RM40 billion in dividends to the government in 2023, slightly higher than the previous Budget 2023's headline RM35 billion.

Petronas to contribute RM40b dividend payout to govt in 2023

The government has estimated that operating expenditure (OE) in 2023 will decline by 1.2% to RM289.1 billion from RM292.7 billion in 2022, primarily due to lower subsidy allocations as commodity prices are expected to moderate while the targeted subsidy mechanism is gradually implemented.

The RM289.1 billion estimated OE is 15.3% of the gross domestic product, according to the Finance Ministry’s revised 2023 Economic & Fiscal Outlook report.

Govt operating expenditure falls 1.2% to RM289 bil in 2023 on lower subsidy allocations

The government expects to be able to generate higher revenue of RM291.5 billion this year, mainly supported by a further growth of 6.9% in direct tax collection, thanks to improved corporate earnings prospects and “continuous efforts in enhancing auditing and tax compliance”.

With a budgeted expenditure of RM386.14 billion, the government is expecting a fiscal deficit of RM93.94 billion, equivalent to 5% of gross domestic product (GDP) in 2023, down from RM99.48 billion (5.6%) in 2022 and RM98.74 billion (6.4%) in 2021, according to the revised 2023 Economic and Fiscal Outlook report.

Govt sees higher direct tax collection supporting 2023 revenue, expects 5% fiscal deficit

KUALA LUMPUR (Feb 24): The Federal Government’s debt is estimated to reach around 62% of gross domestic products (GDP) by end-2023, up from 60.4% or RM1.08 trillion last year, as Putrajaya continues to borrow for the financing of development programmes and projects under the 12th Malaysia Plan, and also as the redemption of 1Malaysia Development Bhd (1MDB) bonds mature in March.

Fed govt debt likely to rise to 62% of GDP by end-2023 on higher borrowings to fund 12MP, 1MDB bond redemption

KUALA LUMPUR (Feb 24): Malaysia’s inflation rate is expected to rise to between 2.8% and 3.8% in 2023 amid slower economic prospects and stable commodity prices, according to the Ministry of Finance (MOF)’s revised Economic and Fiscal Outlook 2023 report.

Malaysia’s 2023 inflation seen at 2.8%-3.8%

KUALA LUMPUR (Oct 7): The government has reduced the allocation of subsidy and social assistance to RM42 billion in Budget 2023 compared with RM58.9 billion in 2022.

However, the Ministry of Finance has revealed over the months that the country’s susbidy bill has ballooned to RM77 billion in 2022.

Lower subsidy and social aids at RM42 bil in 2023 amid expectation of lower oil prices

KUALA LUMPUR (Oct 7): The Malaysian government will still spend more than it earns in 2023 due partly to higher emolument for civil servants and debt service charges, expecting a budget deficit of RM99.07 billion, or 5.5% to gross development product (GDP).

Budget deficit in 2023 only about RM400 mil less than record high in 2022

The government has budgeted a slightly smaller amount for operating expenditure (OE) in 2023 due mainly to the expectation of less money required for subsidies.

Some RM272.34 billion has been allocated for 2023, which is 4.3% lower compared with RM285.7 billion in 2022 while it was RM231.5 billion in 2021. The 2023 OE is 15% of GDP.

Govt operating expenditure falls 4.3% despite 'subsidies & social aid' allocation shrinking by 28.7%

The labour market is anticipated to improve in 2023, with the unemployment rate forecasted to reduce to 3.5%-3.7%, according to the Economic Report released by the Ministry of Finance.

Unemployment in 2023 seen lower at 3.5%-3.7%

The Ministry of Finance has said investors are expected to remain cautious following the US Federal Reserve's indication of further interest rate hikes to curb high inflation.

MOF: Fed's hawkish stance may undermine Malaysian equities

Malaysia’s economic growth in 2022 could land higher than initial estimates at 6.5%-7%, before slowing to 4%-5% in 2023, said the Ministry of Finance in its 2023 Economic Outlook report.

Malaysia’s economic growth expected to ease to 4%-5% in 2023

Russia and Ukraine exchanged fire on energy facilities overnight, with an oil refinery damaged in Russia’s Krasnodar region, while Ukraine sustained a missile barrage on gas infrastructure and other targets.

Russia, Ukraine exchange strikes on refinery and gas targets

Deutsche Bank AG is putting aside as much as €1.3 billion (US$1.4 billion or RM6.6 billion) in legal provisions, warning this will hit profits.

The bank will book the potential payment in the current quarter, it said in a statement late on Friday. That will impact “second quarter and full-year profitability”, it said, while adding that the ultimate amount of the provisions is not clear yet.

Deutsche Bank earmarks US$1.4b provision in hit to profit

Genting Malaysia Bhd has dismissed reports linking the group and its deputy chairman and chief executive Tan Sri Lim Kok Thay to supposed discussions relating to the opening of a second casino for Malaysia in Forest City, Johor, to revive the US$100 billion (RM477.60 billion) development.

Genting Malaysia denies involvement in talks for Forest City casino

The Territorial Sea Act 2012 (Act 750) remains valid and applicable throughout Malaysia, including in Terengganu, unless declared otherwise by the court, says the Prime Minister’s Office, despite the Terengganu State Legislative Assembly's decision to reject its use.

Territorial Sea Act 2012 still valid, including in Terengganu, says PMO

The Malaysian government is serious about resolving issues surrounding the palm oil industry in the country, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

Govt serious about resolving palm oil industry issues, says Johari Ghani

Three new semiconductor companies are keen to invest in Penang with total investments of US$100 million (RM477 million), said Chief Minister Chow Kon Yeow.

Three semiconductor firms keen to invest US$100m in Penang

Tan Sri Mokhzani Mahathir and his brother Mirzan Mahathir, who have been asked to declare their assets by the Malaysian Anti-Corruption Commission (MACC), have both denied being investigated by the agency.

Mahathir's sons, Mirzan and Mokhzani, deny being under MACC probe

Defence Minister Datuk Seri Mohamed Khaled Nordin said the government had no plans to temporarily suspend the service of Fennec and HOM helicopters.

Govt not suspending service of Fennec and HOM helicopters, says minister

It will be a four-way fight in the upcoming Kuala Kubu Bahru by-election between Pakatan Harapan’s pick Pang Sock Tao, Hulu Selangor Bersatu action division head Khairul Azhari, Parti Rakyat Malaysia’s Hafizah Zainudin and independent Nyau Ke Xin.

NEWS: Four-cornered fight in KKB by-election

Parti Rakyar Malaysia’s Hafizah Zainudin says that if elected, PRM will stand on a platform of increased transparency in government.

NEWS: Parti Rakyat Malaysia will run on more transparency

Three new semiconductor companies are keen to invest in Penang with&nbsp;total investments of US$100 million (RM477&nbsp;million), said Chief Minister Chow Kon Yeow.

Genting Malaysia Bhd has dismissed reports linking the group and its deputy chairman and chief executive Tan Sri Lim Kok Thay&nbsp;to supposed discussions relating to the opening of a second casino for Malaysia in Forest City, Johor, to revive the US$100 billion (RM477.60 billion) development.

Tan Sri Mokhzani Mahathir and his brother Mirzan Mahathir, who have been asked to declare their assets by the Malaysian Anti-Corruption Commission (MACC), have both denied being investigated by the agency.

The Territorial Sea Act 2012 (Act 750) remains valid and applicable throughout Malaysia, including in Terengganu, unless declared otherwise by the court, says the Prime Minister’s Office,&nbsp;despite the Terengganu State Legislative Assembly's decision to reject its use.

The Malaysian government is serious about resolving issues surrounding the palm oil industry in the country, said Plantation&nbsp;and Commodities Minister Datuk Seri&nbsp;Johari&nbsp;Abdul&nbsp;Ghani.

Deutsche Bank AG is putting aside as much as €1.3 billion (US$1.4 billion or RM6.6 billion) in legal provisions, warning this will hit profits.

The bank will book the potential payment in the current quarter, it said in a statement late on Friday. That will impact “second quarter and full-year profitability”, it said, while adding that the ultimate amount of the provisions is not clear yet.

Russia and Ukraine exchanged fire on energy facilities overnight, with an oil refinery damaged in Russia’s Krasnodar region, while Ukraine sustained a missile barrage on gas infrastructure and other targets.

Defence Minister Datuk Seri Mohamed Khaled Nordin said the government had no plans to temporarily suspend the service of&nbsp;Fennec and HOM helicopters.

Economic Report 2022/2023

‌
‌

Economic Report 2022/2023

‌‌

‌
‌