2025 Budget Aims to Drive Economic Growth and Global Partnerships: UOB

The financial plan 2025 strongly emphasises organic growth within Malaysia’s economy. The budget allocates RM2.184 billion to the Investment, Trade and Industry Ministry (Miti), shifting from product-based to activity-based incentives aimed at high-value sectors through the New Investment Incentive Framework (NIIF).

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan stated, “Miti’s oversight of this framework aims to attract quality investments that foster innovation, ultimately driving the nation’s economic transformation.” The budget also includes a RM1 billion Strategic Investment Fund to support local talent and high-value activities, alongside incentives for local supply chains.

Budget Supports Halal Growth

Additionally, the financial plan 2025 allocates RM20 million to enhance the competitiveness of Malaysian halal products and RM200 million through Khazanah Nasional Bhd to train 11,000 local talents in strategic sectors. The Exporter Sustainability Incentive Scheme, amounting to RM70 million, aims to support local exporters in expanding their international presence while achieving sustainability goals.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that “a higher allocation means more capacity-building programmes to promote entrepreneurship and help encourage the adoption of digitalisation.” Stephen Innes, managing director at SPI Asset Management, highlighted that the budget reflects a commitment to fiscal consolidation that could strengthen the ringgit next year.

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Staff Writer

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