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Budget 2025 was the largest Budget allocation ever at RM421 billion, with the objective of revitalizing the economy, catalyzing transformative change and improving the overall well-being of the Rakyat. The Budget strikes a strategic balance, reinforcing the nation’s commitment to fiscal resilience while navigating the challenges of the global and regional economic landscape and setting the foundation for long-term growth.

Riding the wave of robust growth from 2.9% in Q4 of 2023 to 5.9% in Q2 of 2024 and with a vision to further invigorate the economy to achieve a leading status in Asia, Budget 2025 has unveiled impactful and targeted measures, charting a course for sustainable prosperity and enhanced competitiveness.

Fiscal Sustainability, Economic Growth, and Debt Management

The Government has increasingly demonstrated its commitment to fiscal discipline, as evidenced by the enactment of the Public Finance and Fiscal Responsibility Act in December 2023 and the continued emphasis on reducing the fiscal deficit and national debt levels.

Following the rationalization of the diesel subsidy, Budget 2025 provides additional clarity on the Government’s approach and timeline for addressing the RON95 petrol subsidy. The RON95 rationalization exercise will be implemented in mid-2025 in a manner similar to the targeted electricity subsidy program, such that 85% of the Rakyat will not be adversely impacted. The savings from this exercise will be channeled to public welfare.  Whilst rationalization is fraught with complexities, we commend the Government for its efforts in taking this necessary and urgent action.

Broadening the tax base

In light of the decision not to reintroduce Goods and Services Tax (GST) at this stage, as expected, the Government will mobilize various other levers to bolster revenue collection. These include a 2% tax on dividend income exceeding RM100,000 received by individual shareholders (from the year of assessment 2025) and the expansion of the Sales Tax and Service Tax (SST) (effective May 2025) to encompass additional services and non-essential goods.

It is encouraging that the Government will involve stakeholders from the relevant industries to seek feedback before finalizing the SST scope expansion and tax rates, which will smoothen the implementation of the progressive SST system and avoid any unintended consequences.

In addition, there were other proposed tax measures such as carbon tax on iron and steel, and energy sectors (in 2026) and increase in the “sugar tax” starting from 1 January 2025. The revenue from such taxes will be earmarked for specific purposes (e.g. to finance research and green technology programs, cover public health expenditure).

Competitiveness in the Global Landscape

One of the key themes of the Budget is to attract more impactful investments, by introducing the New Investment Incentive Framework (NIIF) which focuses on high-value activities with positive economic spillover to the nation, moving away from existing incentives based on specific products. The NIIF is expected to be implemented in the third quarter of 2025.

Specific focus areas include the diversification of the Electrical and Electronics (E&E) sector through high-value-added activities, creating high-level income job opportunities in the field of artificial intelligence (AI), strengthening the local supply chain and primary sector ecosystems, state-specific economic clusters and ESG-driven investments. Through this more targeted approach, it is hoped that the implementation will attract the right kind of investments. We look forward to the details of the new framework.

The Government has noted that the introduction of Global Minimum Tax (GMT) rules in Malaysia will result in additional top-up taxes on low-taxed income of large multinational groups of companies, which may negatively impact the investment environment. To address this, the Government has committed to streamlining existing tax incentives, introducing non-tax incentives and studying the introduction of a “Strategic Investment Tax Credit”.  We expect this credit to be designed as a ‘Qualified Refundable Tax Credit’ (QRTC) that would be less affected by GMT rules, to give Malaysia a competitive edge in attracting foreign direct investments.

In parallel, there is also continued focus on public service reforms and good governance, including the proposed public administration efficiency commitment Bill which will cover three critical areas i.e. reducing bureaucracy, expediting processes, and improving service delivery.

These initiatives are a continuation of measures from previous MADANI Budgets to enhance Malaysia’s competitiveness. The results of the efforts taken to-date are evident from the increase of foreign direct investment (FDI) numbers, with Malaysia’s ASEAN ranking improving from 6th to 4th between 2020 and 2022.

Redistributing income and reducing inequality

Malaysia is poised to enact a series of fiscal reforms to strengthen its economy and advance its vision for sustainable and inclusive growth. In response to the rising cost of living and to narrow the wage gap, the Government plans to increase the minimum wage to RM1,700 and further enhance various cash assistance programs, as well as maintaining the RON95 subsidy for 85% of the Rakyat.

To boost national productivity and encourage inclusiveness, the Government is introducing incentives to expand the workforce while supporting diverse family and work arrangements. Employers will benefit from a 50% additional tax deduction for hiring women returning to work, implementing flexible work arrangements, and providing additional paid caregiving leave for employees caring for children or ill or disabled family members. We are optimistic that these incentives will accelerate an upward trend in female labor force participation.

Special tax rates will be introduced in 21 economic sectors in states such as Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, aimed at reducing regional economic disparities and promoting equitable development throughout the country. Various financing facilities are available to support the women, youth and people with disabilities to venture into business. These measures reflect Malaysia’s dedication to creating a robust economy that benefits all citizens.

Digital economy and Artificial Intelligence

Budget 2025 marks a significant step in Malaysia’s journey towards a digital future, with a series of initiatives aimed at strengthening the digital economy and accelerating the adoption of AI. These targeted measures, together with the USD16.9 billion of digital investments already secured by the country, will help propel Malaysia to the forefront of the digital economy and AI, ensuring the nation’s readiness for the opportunities and challenges of the digital age.

Recognizing the importance of digital skills, the proposed NIIF will include incentives to encourage development of qualifying new courses for AI, robotics, Internet of Things (IoT), data science, FinTech, and sustainable technology at Private Higher Education Institutions and private skills training institutions over the next 5 years.

To support digitalization of various industries, the Government has also announced tax incentives such as accelerated capital allowance to encourage use of drones and AI technology in plantation operations, thereby reducing dependence on foreign labor. Investors in Smart Logistics Complexes (SLCs) will be incentivized with a proposed 60% investment tax allowance for a period of 5 years, to be utilized against 70% of statutory income, aimed at stimulating growth and activity in this critical area. These initiatives underscore Malaysia’s dedication to maintaining a competitive edge in the digital era and equipping its workforce for the future.

In conclusion, Budget 2025 is a testament to the Government’s decisive policy making. This expansionary budget reflects a strong commitment to steering the nation towards a sustainable and thriving future by catalyzing growth in key sectors, revitalizing the economy and prospering the Rakyat. We look forward to the positive outcomes these initiatives will bring to the nation.

Kuching, 15 October 2024 – The Sarawak Multimedia Authority (SMA) has signed a
Memorandum of Understanding (MoU) with MEASAT Global Berhad (MEASAT),
Malaysia’s premier satellite solutions provider to enhance Sarawak’s space industry
development. The signing, witnessed by YB Dato Sri Julaihi Narawi, Minister for Utility
and Telecommunication. The MoU exchange ceremony will follow during the
International Digital Economy Conference Sarawak (IDECS) 2024 on 16 October 2024,
officiated by YAB Datuk Patinggi Tan Sri Abang Johari Tun Openg, Premier of Sarawak,
at the Borneo Convention Centre Kuching.

Under this MoU, MEASAT will serve as a consultant to the Sarawak Space Industry and
Satellite Committee (SISCOM) and offer industry expertise to shape policies, guidelines
and the future of space and satellite industries in Sarawak. This also includes training
and talent development, leveraging MEASAT’s 30 over years of experience in satellite
management and service commercialisation.

As part of the collaboration, SMA and MEASAT will explore joint projects, including
satellite operations and management, the development of space, satellite, and launching
policies, guidelines, training, and industry development. The private-public partnership
will bring economic benefit to the State while enhancing Sarawak’s satellite capabilities.

“The collaboration between SMA and MEASAT marks a pivotal moment for Sarawak’s
ambitions in the space industry. By harnessing MEASAT’s satellite expertise, we are
paving the way for greater connectivity, particularly in rural areas, while laying the
foundation for Sarawak to manage its own satellite systems. This partnership is key to
achieving our 2030 goals of satellite self-sufficiency, which will also contribute towards
elevating our policymaking capabilities with advanced data collection and analysis,”
commented YB Dato Sri Julaihi Narawi, Minister for Utility and Telecommunication.

“SMA is committed to fostering open collaboration to explore innovative strategies for
enhancing Sarawak’s connectivity and strengthening its digital infrastructure. SMA’s
partnership with MEASAT is a significant step forward in building a robust space industry
in Sarawak. With MEASAT’s vast experience, this collaboration will allow us to undertake
joint projects, nurture local talent and expertise in Sarawak’s nascent aerospace sector,
and position the state as a leader in satellite technology, besides driving overall
economic growth,” said Dato Dr Anderson Tiong Ing Heng, General Manager, Sarawak
Multimedia Authority.

“MEASAT is honoured to be part of this initiative with SMA to advance Sarawak’s space
ambitions. By providing our industry expertise, we aim to contribute to the development
of satellite technologies that benefit Sarawak’s communities and government operations,
ultimately supporting the state’s broader objectives,” added Yau Chyong Lim, Chief
Operating Officer, MEASAT.

KUALA LUMPUR, 11 OCTOBER 2024 – Kuala Lumpur’s historic landmark, the Malaysia Tourism Centre (MaTiC) will once again light up in a whole new way as TERANG 2024 returns from October 11th to 20th, 2024, 8:00pm to 11:00pm. In its second edition, this 9-day exhibition will feature 34 competitive showcases of 1 to 1.5-minute projection mapping artworks, all inspired by the theme “Cultural Futurism”. 

When night falls against the timeless backdrop of the city’s oldest colonial architecture, TERANG 2024 takes the audience on an immersive visual journey, blending vibrant cultural heritage with futuristic elements and innovations, illustrating how our roots continue to evolve brightly in the modern era. 

TERANG, inspired by the Malay word for “bright”, is an initiative by Filamen, a forward-thinking platform focused on empowering and cultivating the new media talents of tomorrow. Through a projection mapping competition, TERANG encourages both international and local professional artists, as well as students, to exhibit their creations that breathe new life into heritage architectures, sparking public interest in the preservation of these landmarks.  

The latest edition of TERANG will feature a diverse array of creative submissions from professional artists from Malaysia, Indonesia, Singapore and across the globe. Lling Lling representing Malaysia, a finalist for SOULFEST 2023 and winner of Mapping from Home Malaysia 2021, collaborates with motion designer Brian Cha on “Future Nature”, a thought-provoking piece that juxtaposes nature with human-made environments. Visual artist and architect, Zafree Azhar’s “Halimunan: The Invisible Reverie“ immerses viewers in a melancholic dreamscape where unrequited love and the fleeting nature of existence converges, transforming the heritage site into ghostly reflections of memory and oblivion. Lunartic Studio, the 2023 TERANG Audience Choice Award winner, returns with “Main-Main,” a playful piece inspired by 80s and 90s arcade games, blending Malaysia’s cultural essence with local favourites like the Monopoly-style game, “Millionaire.” Jonathan Lim’s “Night of the Cultural Museum” brings Malaysia’s cultural heritage to life, imagining a vibrant fusion of traditions secretly unfolding after midnight in a museum. 

International highlights include Ari Dykier from Poland and C.L.V.X from Indonesia, both finalists in the world renowned 1minute Projection Mapping Competition in Japan. Bandung artist Eltria’s “Perseverance” captures the enduring spirit of Malaysian culture through the powerful symbolism of the Malayan tiger and the grace of the wau kite, blending tradition with futuristic elements in a world where both co-exist. Meanwhile, LIVEHUMANSUBJECT, led by Roger Ng and Qin Ai Xin from Singapore, inspired by Legend of Bujang Senang, examines the complex interplay between man, machine, and the cosmos through moving images and automated systems.

In addition to professional submissions, TERANG 2024 has attracted participation from students at leading institutions such as DASEIN Academy of Art, INTI International University & College, The One Academy, Universiti Teknologi MARA (UiTM), Universiti Tunku Abdul Rahman (UTAR), Bandung Institute of Technology, BINUS University, Multimedia Nusantara University, and Sampoerna University Jakarta. 

The projection mapping artworks at TERANG 2024 will be evaluated by a distinguished panel of judges, including Fasyali Fadzly, researcher at My Art Memory Project, ASWARA (Malaysia); Ady Setyawan, Festival Director of ITB Light Festival (Indonesia); Pongamorn Olanrungsikul (TUA) Founder and Creative Director of MotionHouse, (Thailand); and Michiyuki Ishita, Creative Director of 1minute Projection Mapping, (Japan). In addition to this, visitors at MaTiC can be part of the creative process by casting their votes for the “People Choice Award”. Simply explore the illuminated MaTiC, scan the on-site QR codes, and vote for the artworks that resonate most with you! 

“Building on last year’s momentum, TERANG 2024 has gained even stronger support and enthusiasm from our community and partners, both locally and regionally. Alongside showcasing innovative works that are unique to the Southeast Asia narrative, we want to lead the way in creating opportunities for artistic exploration of how our cultural identity could evolve tomorrow through today’s technology,” said Abdul Shakir , organiser of TERANG and co-founder of Filamen.

TERANG SHOWCASE AT KREATIF KL

While MaTiC remains the heart of TERANG 2024, the experience extends to the Old High Court next to Masjid Jamek from October 30th until November 3rd, 2024, as part of the Kreatif KL Festival. This special showcase will feature a selection of award-winning and finalist projection mapping works from TERANG 2023, offering visitors a journey from colonial heritage to the Islamic architectural beauty of Masjid Jamek. The continuation reflects TERANG’s commitment to the sustainability and longevity of its artworks. Featured projection artists include Malaysia’s Seeing Arterlier, NEXMedia, Zhonkvision, Lunartic Studio, alongside Indonesia’s Story of Karana and Fearmos. 

TERANG 2024 is organised by Filamen and Pixel World, co-organised by the Ministry of Tourism, Arts and Culture, ASWARA and the Malaysia Tourism Centre (MaTiC) which has supported TERANG since 2023. This event is also made possible by projection partner EPSON Malaysia and MyCreativeVenture, Think City and RUBIX Communications. 

The TERANG 2024 is free and open to the public from 8:00pm to 11:00pm until 20 October 2024. Join us on a journey where history, art and innovation converge.  For the latest updates about TERANG, follow us @wearefilamen on Facebook and Instagram.