The Selangor state government tabled an expansionary budget for 2024, with a total allocation of RM2.53b or +3.3% more than 2023. According to the state Budget 2024, RM1.2b which is equivalent to 47% of the state’s total expenditure will be spent for development expenditures (DE). OPEX is expected to increase by +6.4% to RM1.33b for 2024. The state revenue collection improved by +7.6% in 2023, higher by 20% than the initial estimate. However, the state income is forecasted lower by -8.5% to RM2.2b in 2024. In terms of budget balance to GDP ratio, Selangor’s fiscal deficit is set to be at -0.1% for 2024. Selangor has been recording healthy fiscal conditions as the fiscal balance ratio hovered between +0.1% to -0.2% since 2010. For 2023, the Selangor economy is forecasted to expand by +4.4% for 2023 (2022: +11.9%).
Rancangan Selangor 1 is a development plan for the state of Selangor to chart its path towards achieving a smart, liveable, and prosperous state for the next five years from 2021. The blueprint has four strategic themes (1) Economy, (2) Social, (3) Sustainability, and (4) Governance with 261 initiatives. Under Theme-1 Economy, there are nine focus sectors including ports & logistics and aerospace. Carey Island development and Selangor International Aero Park in Subang are among the game changers set in the development plan under the first theme. Under Theme-2 Social, there are six focus areas including affordable housing. Rumah Selangorku Program: Rumah Idaman & Harapan to be included.
Under Theme-3 Sustainability, there are five focus areas among others low carbon state, water management, and resilience
& disaster management. Among strategies under sustainability is to develop GHG inventory & low carbon cities capacity
building for every local authority and integrated solid-waste management center with a waste-to-energy treatment plant.
The state government of Selangor predicts the average annual growth rate for the period of 2021-2025 is +6.5~7% per annum. The forecast rate is much higher than 12MP-MTR forecast rate of +4.7% for 2023-2025 and +6.2% for 2021-2025. With various pro-growth initiatives, MIDF says it is optimistic about the ability of the golden state of Selangor to expand beyond +4.5% in 2024. In addition, the RS-1 targets are crucial for the state as well as Malaysia due to the Golden State’s economic size. The themes, strategies, and targets will shape the new landscape for the state economy and be beneficial for Malaysia’s macroeconomic performances and financial market
