KUALA LUMPUR, November 3 — The Malaysian Parliament, or Dewan Rakyat, approved the Supply Bill 2024 at the policy stage via a voice vote today. After Finance Minister Datuk Seri Anwar Ibrahim’s winding-up speech for the Bill, Speaker Tan Sri Johari Abdul called for the vote, and it was announced that the Bill was approved with a clear majority in the Lower House. On October 13, Anwar presented Budget 2024, Malaysia’s largest-ever federal spending plan, with a proposed expenditure of RM393.8 billion.
Anwar clarified during his speech that if the government is unable to meet its fiscal deficit projection, he would have no choice but to re-table the Supply Bill 2024 for MPs to object, support, or criticize. Additionally, Anwar highlighted the recently announced targeted subsidies, such as the Capital Gains Tax and High-Value Good Tax, which are expected to contribute to the fiscal projection by generating additional government revenue of approximately RM4 billion. Anwar emphasized the importance of fiscal responsibility and noted that the Public Finance and Fiscal Responsibility Act, passed in Parliament on October 11, would help ensure the sustainability of public finances and macroeconomic stability.
This Act requires the finance minister to formulate a Medium-Term Fiscal Framework to guide fiscal planning, strategies, and priorities over a three- to five-year period, outlining fiscal objectives the government needs to achieve. In response to a question regarding development expenditure figures, Anwar clarified that the decrease in 2024 was due to the payment of RM13 billion in 1MDB debt in 2023, reducing the actual expenditure from RM97 billion to RM84 billion in that year. He emphasized the need for accurate information and encouraged MPs to review the Budget Estimation Book.
The approval of the Supply Bill 2024 represents a significant step forward for Malaysia’s budget planning and fiscal responsibility. It reflects the government’s efforts to manage public finances effectively and ensure long-term economic stability.
