Malaysia to introduce new taxes, slash subsidies in economic reform push

Malaysian Prime Minister Anwar Ibrahim on Thursday announced the implementation of several economic reforms, including new taxes and progressive cuts to state subsidies.

Anwar, who is also finance minister, said economic growth is likely to slip to 4% this year but could reach nearly 5% in 2024.

He said Malaysia's annual subsidies for fuel, food and other items were among the highest in the world but its taxes among the lowest. This year, for instance, he said government subsidies and social assistance surged to 81 billion ringgit ($17 billion) as global commodity prices rose. For 2024, the government allocated 52.8 billion ringgit ($11.2 billion).