Budget 2023 will likely focus on people-centric spending ahead of a general election, according to the World Bank.
The World Bank expects Malaysia’s 2023 Budget to expand and prioritise the people with the aim of achieving the sustainability and digitization goals of the Twelfth Malaysia Plan (RMK12).
World Bank’s Chief Economist for Malaysia Apurva Sanghi said the budget is expected to allocate more resources to education and health in addition to seasonal situations such as floods and elections.
In addition, it is also expected to allocate more spending and incentives to support digitisation efforts for small and medium enterprises (SMEs).
“There are three principles (that the government should adhere to) – manage the budget within the limits of fiscal policy, align it to medium-term strategic priorities and focus on implementation.
“Implementation needs to be planned, monitored and managed. I think this is the part that Malaysia can improve a bit in general,” he said at a recent virtual media briefing titled World Bank East Asia and Pacific Economic Update.
The government allocated a total of RM332.1 billion for the 2022 Budget, which is RM233.5 billion for operational expenditure, RM75.6 billion for development expenditure, RM23 billion for the COVID-19 Fund and RM2 billion for contingency savings.
It is the largest allocation in the history of the national budget with a focus on restoring every socioeconomic segment in the country.
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