Publication

INSAP welcomes the Ministry of Finance’s position to strengthen Malaysia’s fiscal position and to ensure wider coverage of assistance or welfare aid for the lower income groups, including people with special needs and marginalized groups. We understand that the government is laying the foundation for the eventual removal of subsidies for fuel and other essentials that would see rise in prices. However, we caution that the staringly lack of reform in the tax regime and support system for the working class or middle-income groups could potentially erode prosperity and wellbeing these group in the future.

As the Minister of Finance prepares to table Budget 2025 this Friday, the nation stands at a critical crossroads. The upcoming fiscal blueprint arrives amid persistent inflation, geopolitical tensions, and shifting trade dynamics, presenting both challenges and opportunities for our economy.

1. The Time for GST to Return: Reintroducing GST could simplify Malaysia’s tax system and generate RM20-30 billion annually. Despite political resistance, many believe now is the time to reconsider it for greater revenue stability.
2. Investing in the Future of Malaysia: Budget 2025 should focus on healthcare, education, and green technology to drive economic growth. Investments in healthcare and technical education will improve livelihoods and align with future industry needs.
3. Malaysia to Capture World’s Attention with ASEAN: As ASEAN chair in 2025, Malaysia has a strategic opportunity to lead regional integration and sustainable development, leveraging its green economy initiatives.
4. Support for MSMEs: MSMEs need enhanced support through digitalization, technical assistance, and outcome-based financing. Integrating informal workers into social protection schemes will foster inclusive growth. Healthcare access for workers is also crucial

Kuala Lumpur, 7 October 2024 – The Institute of Strategic Analysis and Policy Research
(INSAP) objects to any suggestions to the introduction of inheritance tax in the upcoming 2025
budget.
This is in response to a recent article which pointed out that the Malaysian government may
introduce a new inheritance tax as one of additional sources of tax revenue.

Kuala Lumpur, 2 October 2024—The Institute of Strategic Analysis and Policy Research (INSAP) welcomes recent comments by Datuk Koong Lin Loong, the Treasurer-General of the Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM), calling for the government to help small, medium, and micro enterprises (MSMEs) and the general public manage the increasing costs of doing business and the cost of living in Malaysia.

On the same note, INSAP wishes to point out that we took a step further by putting a similar proposal in our memorandum to the Ministry of Finance handed to the Second Finance Minister on 18 September 2024. In our tax reform paper to the ministry, INSAP researcher Wong Yun Tinn also called for the government to increase personal relief from the existing RM9,000 to RM15,000. For the record, the last revision of personal tax relief was over 14 years ago, which is not in line with the current rising cost of living. Policymakers must implement effective measures to safeguard the B40 and M40 households from the increasing cost of living.

上周，美国国家安全顾问杰克·沙利文（Jake Sullivan）与中国外交部长王毅在北京举行了一次具有重要意义的外交会晤。这次会晤标志着美中两国在应对和处理复杂关系方面所作出的持续努力，是朝着创造持久和平、避免直接冲突迈出的积极一步。

以下是我们的观点。

Joint Statement between the People’s Republic of China and the Russian Federation on Deepening the Comprehensive Strategic Partnership of Coordination for a New Era on the occasion of the 75th anniversary of the establishment of diplomatic relations between the two countries