PETALING JAYA: The government has significantly increased allocations for the continuation of all existing programmes, said UniKL business school economic analyst Dr Aimi Zulhazmi Abdul Rashid.
He remarked that, overall, aside from it being the largest in the country’s history, totalling RM421 billion, Budget 2025 is not much different than Budget 2024.
“All government programmes, such as those providing aid and welfare for the people, including Sumbangan Asas Rahmah (Sara), Sumbangan Tunai Rahmah (STR), Social Welfare Department (JKM) and Payung Rahmah, as well as various initiatives to support micro, small and medium enterprises, startups and others, have received increased allocations for continuation,” he said when commenting on Budget 2025.
Aimi Zulhazmi highlighted notable improvements in the Budget, particularly the government’s plan to introduce targeted subsidies for RON95 this year. However, the implementation mechanism has not yet been explained, whether it will involve Central Database Hub (Padu), eKasih or another approach.
He also pointed out that in the 2025 pre-budget dialogue, the government had announced further incentives to boost the economy, such as the Johor-Singapore Special Economic Zone being established as a tax-free area and a financial hub for high-net-worth fund management, along with the implementation of e-invoicing to streamline national tax transactions.
“There were some surprises in the tax aspect, including the introduction of a new 2% tax on company dividends, though Inheritance Tax and high-value goods tax were not introduced as expected. The implementation of a carbon tax for the iron and steel industry, anticipated for 2026, was also confirmed,” he added.
Aimi Zulhazmi said the government continues to provide cash assistance through schemes such as Sara and STR, with increased allocations compared to last year, recognising the growing population and the rising cost of living, despite improvements in the national economy.
“The government also aims to redirect savings from targeted subsidies, such as those on electricity bills and diesel, to the B40 segment, which is in greater need. For example, RM4 billion saved from diesel subsidies has now been reallocated through STR and Sara to RM13 billion, an increase of RM3 billion from Budget 2024,” said Aimi Zulhazmi.
Additionally, he observed that the government has made substantial provisions for citizens and businesses to adapt to the digital economy, particularly in areas involving smart technologies such as artificial intelligence (AI).
“Digital transformation initiatives include MyDigital ID, which covers Padu, Road Transport Department and Inland Revenue Board, alongside efforts to strengthen the country’s cybersecurity. Public universities have been given special allocations to develop AI in line with their respective specialisations.
“A special tax deduction incentive has also been introduced for all private universities and skills institutes offering courses in digital technology, AI, robotics, IoT, data science, fintech, and sustainable technology,” he said.
Aimi Zulhazmi noted that the government remains committed to the energy transition programme aimed at achieving the net-zero greenhouse gas target, with various innovative projects receiving government support.
“Likewise, the government is encouraging individuals and businesses to save electricity by promoting energy efficiency, while continued support for electric vehicles has now been extended to include electric motorbikes as well,” he said.
