ECONOMY: SUBSIDY RATIONALISATION AS A HALLMARK Reformation
Financially, Malaysia managed to keep home numbers stable while attracting report international investments. The rise in GDP, prices, and employment indicate that the market is recovering despite the uncertainty and reduction of the world. Notable are investments in artificial intelligence, electronics, and information centers, which are expected to continue into 2025.
The gasoline rebate rationalization, which was promised in the Budget 2025 and will be implemented by mid-2025, will be the primary issue in experts ‘ heads in the upcoming season.
This is important for many reasons. Second, diesel payment rationalisation is usually a very emotive issue, especially for an oil-producing state like Malaysia, which has long enjoyed lower rates.
Next, the amount of the president’s reform agreements comes down to this problem- past governments have tried and reversed when faced with opposition.
Third, it might be the last opportunity for challenging reforms before the cohesion government’s “election period,” which is its final two years before the next general election.
Though Mr Anwar has rolled backwards subsidies relating to diesel, electric, and limited food items, the petrol subsidy rationalisation is unlike any other, so presenting an enormous challenge to his administration.
There is no telling what kind of effect this will have on the wider economy, despite the fact that he has narrowed the scale to the top 15 % of income earners. However, if he were to pass this test, he may have accomplished something that his forebears may not be able to do.
As a trade-dependent business, how Malaysia tickets in a US-China business war under Trump 2.0 depends on the depth and breadth of those taxes. As more businesses look for geopolitically balanced and regionally strategic places with long-term planning, the reshoring to Malaysia, as it did in 2024, may increase exponentially. However, if the scope of taxes is higher, i. electronic affecting more items, as it has transistor technology and solar panels in Malaysia, then the net benefit may be lower.