Malaysia raises development spending, taxes for rich in 2023 budget

Malaysia will raise development spending and plans new taxes for the wealthy in a smaller budget plan this year, as the new government seeks to balance between spurring economic growth and reining in the budget deficit.

Three months after his election victory, Prime Minister Anwar Ibrahim unveiled a 386.1 billion ringgit ($87 billion) national budget in Parliament on Friday that focuses on helping people grappling with the rising cost of living amid an economic slowdown.

Fuel and other subsidies, along with cash aid for the poor, farmers and industries are being retained, and new incentives will aim to tackle youth unemployment and bolster foreign investment.

Anwar said the income tax system will also be rejigged to lower taxes for some 2.4 million middle-income earners but raise taxes for those in the high-income group.

Anwar, who is also finance minister, said the government plans to introduce a luxury goods tax this year and is considering a capital gains tax.

The budget also .