KUALA LUMPUR: The Dewan Negara today passed the Supplementary Supply Bill (2024) 2025 authorising additional expenditure of RM20.19 billion from the Consolidated Fund for government services.
The bill, tabled by Finance Minister II Datuk Seri Amir Hamzah Azizan was passed with a majority of votes after being debated by 12 Senators.
The additional allocation includes RM12.62 billion for the Treasury’s General Services, RM3.15 billion for the Statutory Fund, RM1.76 billion for the Ministry of Education, RM1.15 billion for the Public Service Department, and RM1.08 billion for the Ministry of Domestic Trade and Cost of Living.
Other allocations include RM418 million for the Ministry of Higher Education and RM8.19 million for the Election Commission.
Earlier, during the winding-up of the bill’s debate, Amir Hamzah highlighted that Malaysia’s fiscal deficit had narrowed from 5.5 per cent in 2022 to five per cent in 2023, reflecting ongoing fiscal consolidation efforts.
He noted that in 2024, the deficit reduction outperformed the target set in the national budget, reaching 4.1 per cent of gross domestic product (GDP) compared to the initial projection of 4.3 per cent.
“This aligns with the government’s prudent debt management approach, as the increase in new debt has declined from RM92.6 billion in 2023 to RM77 billion in 2024. This demonstrates our commitment to balancing development needs with fiscal responsibility.
“The government remains committed to reducing the deficit, projecting 3.8 per cent in 2025, and working towards meeting the Fiscal Responsibility Act commitment of lowering it to as low as three per cent of GDP by the end of 2028 at the latest,“ he said.
On targeted subsidies for RON95 petrol, Amir Hamzah said the government will use MyKad as the primary reference to verify citizenship status, while other criteria, including vehicle ownership (motorcycle or car), and the locality of subsidy recipients, are still under review.
“The government is also assessing the approach for determining the household income brackets to ensure that the majority of 85 per cent of the people, will not be adversely affected when targeted RON95 petrol subsidies are implemented,“ he said.
Meanwhile, Amir Hamzah addressed concerns regarding the government’s loan to Sapura Energy Bhd, stating that the loan could be converted into equity, depending on the company’s performance.
“If Sapura Energy’s business improves and there is value in conversion, we may convert the loan into equity for better returns. This loan is also secured, with over RM3 billion worth of assets pledged against RM1.1 billion facility,“ he said.
He reiterated the government’s support for the oil and gas sector, expressing hope that Sapura Energy would recover and regain its competitive edge in international markets.
The Dewan Negara sitting continues tomorrow.
