Kuala Lumpur: The Dewan Negara today passed the Supplementary Supply Bill (2024) 2025, authorising additional expenditure of RM20.19 billion from the Consolidated Fund for government services.
According to BERNAMA News Agency, the bill was tabled by Finance Minister II Datuk Seri Amir Hamzah Azizan and was passed with a majority of votes after being debated by 12 Senators. The additional allocation includes RM12.62 billion for the Treasury’s General Services, RM3.15 billion for the Statutory Fund, RM1.76 billion for the Ministry of Education, RM1.15 billion for the Public Service Department, and RM1.08 billion for the Ministry of Domestic Trade and Cost of Living. Other allocations include RM418 million for the Ministry of Higher Education and RM8.19 million for the Election Commission.
During the winding-up of the bill’s debate, Amir Hamzah highlighted that Malaysia’s fiscal deficit had narrowed from 5.5 per cent in 2022 to five per cent in 2023, reflecting ongoing fiscal consolidation efforts. He noted that in 2024, the deficit reduction outperformed the target set in the national budget, reaching 4.1 per cent of GDP compared to the initial projection of 4.3 per cent.
Amir Hamzah stated that this aligns with the government’s prudent debt management approach, as the increase in new debt has declined from RM92.6 billion in 2023 to RM77 billion in 2024. He emphasized the government’s commitment to balancing development needs with fiscal responsibility, projecting a deficit of 3.8 per cent in 2025 and aiming to meet the Fiscal Responsibility Act commitment of reducing it to as low as three per cent of GDP by the end of 2028 at the latest.
On targeted subsidies for RON95 petrol, Amir Hamzah explained that the government will use MyKad as the primary reference to verify citizenship status, while other criteria, including vehicle ownership and locality of subsidy recipients, are still under review. He added that the government is also assessing the approach for determining household income brackets to ensure that the majority of 85 per cent of the people will not be adversely affected when targeted RON95 petrol subsidies are implemented.
Additionally, Amir Hamzah addressed concerns regarding the government’s loan to Sapura Energy Bhd, stating that the loan could be converted into equity, depending on the company’s performance. He mentioned that if Sapura Energy’s business improves and there is value in conversion, the loan may be converted into equity for better returns. The loan is secured, with over RM3 billion worth of assets pledged against the RM1.1 billion facility. He reiterated the government’s support for the oil and gas sector, expressing hope that Sapura Energy would recover and regain its competitive edge in international markets.
The Dewan Negara sitting continues tomorrow.