Trade groups say Budget 2025 will set strong foundation for sustainable economic growth

KUALA LUMPUR, Oct 21 — Budget 2025 will help Malaysia achieve sustainable economic growth and address key challenges, National Chamber of Commerce and Industry of Malaysia (NCCIM) has said today.

NCCIM president Datuk Seri N. Gobalakrishnan said the development budget of RM86 billion will improve local infrastructure that will benefit the entire economy.

“This injection will ripple through our economy, stimulating domestic consumption and breathing life into various sectors,”Gobalakrishnan told reports at a press conference at its headquarters here.

He also praised the initiatives such as the allocation of RM50 million for industry digitalisation grants, RM750 million allocated under the Exporter Sustainability Incentive Scheme, and the RM40 million allocated under the Malaysia External Trade Development Corporation (Matrade).

Federation of Malaysian Manufacturers vice-president Jacob Lee said it was heartening that the government will finally adopt the multi-tier levy system for the foreign workers to channel the levy collected for the backup of the industry.

However, he asked for transparency in how the levy collections would be used.

He further asked for policies to stem the country’s loss of talent abroad.

“We also have been advocating for the government should consider to lower the corporate tax for the industry, we are one of the highest in the region, if I’m not mistaken even higher than Indonesia and Thailand,” Lee said.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) council member Teoh Kok Lin said Budget 2025 was heading for the right direction.

He said the country is doing the “hard work” in rationalising blanket subsidies for fuel, education, and healthcare while demonstrating discipline in reducing the fiscal deficit.

“We are seeing that global and as well as domestic investors are watching this, because if we going at the right direction, they will have more confidence in our economy and our ringgit,” he said.

Prime Minister Datuk Seri Anwar Ibrahim tabled a RM421 billion federal spending plan under Budget 2025 on Friday, the largest in the history of the country.