KRI PRESS |
Aug 20, 2025
Budget 2023: Embodying the principles of Malaysia MADANI
## Media Release from Tan Sri Nor Mohamed Yakcop
**Chairman, Khazanah Research Institute (KRI)**
Budget MADANI 2023 is certainly the right step forward in facing the many difficult challenges hovering on the horizon, particularly amidst the disruption of global supply chains and rising food prices.
The New Industrial Master Plan 2030 which is to be announced this year will be a significant step to achieve a high value add growth path. Targeted financing of RM1.5 billion by GLCs for high impact and high growth start-ups is in the context of creating an innovation-based economy. A total of RM40 billion in grants and loans for MSME business development as well as additional financing for MSMEs digitalisation and automation should enable Malaysian businesses to remain resilient and competitive.
KRI commends the initiatives the government has taken to increase the household income of various groups. Measures to empower the earning potential of low-income households through the _Inisiatif Pendapatan Rakyat_(IPR), incentives to employers to increase wages for targeted groups, as well as a reduction in tax rates for the M40 households truly reflects the concept of Prosperity (_Kesejahteraan)_ for all Malaysians.
Expansion of social protection towards those who are self-employed through an 80% contribution by the government towards their PERKESO accounts as well as a RM500 transfer to the EPF account 1 for those who are aged 40-54 with low retirement savings contributes significantly to the general welfare of the lower income groups.
The Budget’s focus in managing increasing climate risks is represented by an increase in the Ecological Fiscal Transfers (EFT) for environmental conservation. Meanwhile, _Sumbangan Tunai Rahmah_ (STR), targeted at 8.7 million recipients and totalling to RM8 billion, makes an important contribution to food affordability and accessibility through the distribution of food baskets or vouchers.
KRI believes that the budget can enable inclusive and sustainable economic growth, instil confidence through institutional and governance reforms, as well as advance social justice.
**END**
* * *
For further information, please contact Najyah Johar Salim ( [najyah.johar@krinstitute.org](mailto:najyah.johar@krinstitute.org)) or call 03-2034 0000.
**Chairman, Khazanah Research Institute (KRI)**
Budget MADANI 2023 is certainly the right step forward in facing the many difficult challenges hovering on the horizon, particularly amidst the disruption of global supply chains and rising food prices.
The New Industrial Master Plan 2030 which is to be announced this year will be a significant step to achieve a high value add growth path. Targeted financing of RM1.5 billion by GLCs for high impact and high growth start-ups is in the context of creating an innovation-based economy. A total of RM40 billion in grants and loans for MSME business development as well as additional financing for MSMEs digitalisation and automation should enable Malaysian businesses to remain resilient and competitive.
KRI commends the initiatives the government has taken to increase the household income of various groups. Measures to empower the earning potential of low-income households through the _Inisiatif Pendapatan Rakyat_(IPR), incentives to employers to increase wages for targeted groups, as well as a reduction in tax rates for the M40 households truly reflects the concept of Prosperity (_Kesejahteraan)_ for all Malaysians.
Expansion of social protection towards those who are self-employed through an 80% contribution by the government towards their PERKESO accounts as well as a RM500 transfer to the EPF account 1 for those who are aged 40-54 with low retirement savings contributes significantly to the general welfare of the lower income groups.
The Budget’s focus in managing increasing climate risks is represented by an increase in the Ecological Fiscal Transfers (EFT) for environmental conservation. Meanwhile, _Sumbangan Tunai Rahmah_ (STR), targeted at 8.7 million recipients and totalling to RM8 billion, makes an important contribution to food affordability and accessibility through the distribution of food baskets or vouchers.
KRI believes that the budget can enable inclusive and sustainable economic growth, instil confidence through institutional and governance reforms, as well as advance social justice.
**END**
* * *
For further information, please contact Najyah Johar Salim ( [najyah.johar@krinstitute.org](mailto:najyah.johar@krinstitute.org)) or call 03-2034 0000.
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