2023 Budget and Economic Prospects
The retabling of new Budget 2023 reinforces economic resilience; addressing immediate concerns about cost of living pressures; and implementing reforms for growth and business sustainability.
Ministry of Finance (MOF) expects the economy to slow to 4.5% in 2023 (2022: 8.7%) from an estimated 4.0%-5.0% in the original Budget due to:
i. Slower global economy;
ii. Normalisation of domestic demand; and
iii. Decelerating exports;
2023 Budget – Measures and Initiatives
The fiscal policy remains expansionary and continues focusing on improving the inequality and sustainability agenda.
FOR RAKYAT: Financial assistance and subsidies as well as equality measures (personal tax adjustment, shift of wealth, social protection, etc.) aim for a more targeted and fairer economy.
FOR BUSINESSES AND INVESTMENT: Incentives, financing and loan facilities, assistance for SMEs, agriculture and tourism remain supportive.
FOR SUSTAINABILITY: Green initiatives and Environmental, Social and Governance (ESG); financing for sustainable Development; and 5G infrastructure.