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Malaysia will cut subsidies and tax luxury goods as it unveils a 2024 budget narrowing the deficit
Malaysian Prime Minister Anwar Ibrahim says subsidies will be progressively cut and new taxes launched next year as part of the 2024 federal budget
KUALA LUMPUR, Malaysia (AP) — Malaysia will progressively cut subsidies and launch new taxes including for luxury goods next year as part of economic reforms and to tighten its finances, Prime Minister Anwar Ibrahim said Thursday.
Anwar, who took power last November, announced the measures while tabling 2024 federal budget in Parliament. He said the 393.8 billion ringgit ($83.3 billion) budget is aimed at fixing economic imbalances and helping people to cope with rising cost of living amid a global economic slowdown.
Anwar, who is also finance minister, said economic growth is likely to slip to 4% this year but could reach nearly 5% in 2024.
He said Malaysia's annual subsidies for fuel, food and other items were among the highest in the world but its taxes among the lowest. This year, for instance, he said government subsidies and social assistance surged to 81 billion ringgit ($17 billion) as global commodity prices rose. For 2024, the government allocated 52.8 billion ringgit ($11.2 billion).