In its pre-budget statement, the ministry said it aims to restructure the economy towards greater competitiveness and higher value-added activities; improve quality of life and inclusiveness of opportunities; and strengthen governance and public delivery.

“The pre-budget statement sets out the theme of ‘Madani economy: A prosperous nation for the well-being of the rakyat’ to guide the national consultation process for Budget 2025,” it said.

The ministry said the government was committed to a holistic and inclusive process in formulating Budget 2025 and welcomed feedback from the people.

Second finance minister Amir Hamzah Azizan affirmed the ministry’s dedication to advancing fiscal reforms in Budget 2025, aligning with the Fiscal Responsibility Act’s medium-term goals to reduce deficits and manage debt sustainably.

“At the same time, the ministry will also ensure that the fiscal policy remains supportive of private sector-led growth,” he said.

The ministry said Malaysia’s economy was experiencing robust growth, with the gross domestic product increasing from 2.9% in the fourth quarter of 2023 (Q4 2023) to 4.2% in Q1 2024.

It is projected to expand by 5.8% in Q2 2024.

“This growth was fuelled by, among others, a recovery in exports, which grew by 5.2% in Q1 2024 compared with the 8.1% contraction in 2023,” it said.

“Private investment growth strengthened to 9.2% in Q1 2024 compared with 4.6% in Q1 2023.”

The pre-budget statement is in line with global best practices to promote public discourse and transparency in formulating annual budgets.

The finance ministry said the pre-budget statement was issued to communicate the government’s priorities for Budget 2025 to stakeholders, as well as to guide inputs and proposals for the national budget.

The national budget formulation process kicked off on July 9 with a consultation session chaired by Prime Minister Anwar Ibrahim, who is also the finance minister.

“More than 400 participants representing government agencies, the private sector, academics, NGOs and civil society organisations participated in the inaugural consultation session,” it said.

“This will soon be followed by a series of nationwide consultations over the coming weeks.”

The finance ministry said the public could submit their comments, feedback and proposals to the Belanjawan 2025 portal at https://belanjawan.mof.gov.my.

Budget 2025 will be tabled in the Dewan Rakyat on Oct 18.