Fiscal reforms still a strong focus for country
He said the goal remains the same – to ensure gaps are plugged and businesses as well as the wealthy contribute their fair share so that the nation has fiscal strength while providing financial subsidies for those that need it.
'The same approach applies to the expansion of the sales and service tax (SST). It diversifies revenue and is part of a prudent expenditure management.
'In turn, it allows for growth-enhancing investments which generate equitable economic advantages and benefits for all groups, including businesses and the general public,' he said during the Invest Asean-Malaysia 2025 Conference here yesterday.
He added the initial target of RM10bil in revenue from the expanded SST is still what his ministry expects.
'At the moment, I am still confident and I think the government is fair enough to understand that we should adjust along the way,' he said.
He revealed the government took into account ways to minimise the impact on small and medium enterprises as well as on the general population.
According to Amir Hamzah, there are other separate reforms in the pipeline that are set to support economic growth, build credibility and set good examples.
'These include judicial and institutional reforms, fiscal and public sector reforms, social protection and inclusivity reforms, and digital and innovation-led reforms.
'Current global volatility makes reforms more urgent. Institutional strengthening, fiscal discipline, innovation and capacity building are components to sustainable, resilient economic expansion that is capable of weathering future global disruptions,' he added.
With this in mind, Amir Hamzah said when the upcoming budget is being tabled, the government will have a pragmatic and sensible focus, aimed at driving continuity in the nation's progress.
'While it is too early to share details, I can say that it will be yet another effort in securing our economic future, responding where necessary to current economic categories and building a fairer, more equitable society,' he noted.
Amir Hamzah said the commitment to Malaysia's fiscal consolidation remains in sharp focus.
He pointed out that in 2024, the country achieved a budget deficit of 4.1% to the gross domestic product, better than the official target of 4.3%.
'This year, we are targeting 3.8%, while staying consistent with the target in the Public Finance and Fiscal Responsibility Act to reduce the deficit to 3% in the middle term.
'This has not been an easy journey, but we have made huge strides when we compare it with what we started off in 2022 at a 6.4% deficit,' he said.
He noted that this will be accomplished through revenue enhancing measures, tax system efficiency and taxpayer compliance.
'These various sources of revenue provide the fiscal space to invest in building capacity in the nation's infrastructure, talent and cost-effectiveness which corporates and businesses rely on. In many ways, it is an equitable partnership that drives shared progress,' he said.
Meanwhile, Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed said the current strength of Malaysia's economy is no coincidence, but is the outcome of forward-looking policies.
He said the stock exchange has continued to strengthen regional collaborations and enhance linkages with exchanges and the ecosystem across Asean.
'As the largest Asean exchange by number of listed companies, we continue to solidify our position as a key avenue for fundraising.
'In 2024, we led the region's initial public offering (IPO) 'league table' in both the number of IPOs at 55, and in total IPO funds raised,' he said in his keynote speech.
He added there were already encouraging IPO activities witnessed in the first half of this year despite market volatility.
'As we continuously facilitate businesses to raise funds, we also take pride in witnessing companies progress from the LEAP Market to the ACE Market, and from the ACE Market to the Main Market.
'Since 2020, more than 40 companies have made this transition and graduated upwards,' he said.
On a separate note, the Invest Asean-Malaysia 2025 Conference which began yesterday and will run until tomorrow is expected to attract more than 1,500 delegates from across the region.
Themed 'Driving Asean Integration through Malaysia's Economic Resilience – Capital, Collaborations, Connections', the event comprises a showcase of 71 corporates from Asean, including 30 from Malaysia.
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