Kuala lumpur: The Dewan Negara has successfully passed the Supplementary Supply Bill (2025) 2026, sanctioning the first additional operating expenditure for 2025, which amounts to RM8.4 billion. This bill, introduced by Finance Minister II Datuk Seri Amir Hamzah Azizan, garnered majority approval following a debate with participation from 17 senators.
According to BERNAMA News Agency, the supplementary supply includes an additional operating expenditure of RM7.9 billion, presented for approval, while RM472 million is allocated for charged expenditures and did not undergo debate. The RM7.9 billion supplementary allocation encompasses funds for the Finance Ministry (MOF) amounting to RM6.69 billion, the Domestic Trade and Cost of Living Ministry (KPDN) with RM993.94 million, and the Education Ministry (MOE) receiving RM257.59 million.
In his address concluding the debate, Amir Hamzah confirmed that the additional allocation for 2025 was fully utilized and did not impact the fiscal deficit target of 3.8 percent for the year. Additionally, he noted a reduction in the fiscal deficit to 3.7 percent. He explained that while the actual operating expenditure for 2025 was less than the initially approved allocation, several ministries required funds exceeding their original allocations. The First Supplementary Operating Expenditure Estimate for 2025, totaling RM8.4 billion, was devised to address these requirements, and this supplementary figure has already been incorporated into the actual operating expenditure for 2025, which totaled RM330.8 billion, remaining below the approved allocation of RM335 billion.
Amidst global uncertainties, Amir Hamzah acknowledged the potential fiscal implications of geopolitical tensions in West Asia, which could influence the nation's fiscal position due to rising global commodity prices, especially crude oil. The MOF remains vigilant in monitoring international political developments and is ready to implement necessary measures to uphold economic and fiscal stability.
An additional RM993.94 million for KPDN was required to adjust to the increasing global crude palm oil (CPO) prices. The average CPO prices have seen an upward trend, with refined, bleached, and deodorized palm olein market prices reaching RM4,500 per tonne in 2025, compared to under RM4,000 per tonne in 2023. Concurrently, the subsidized one-kilogramme cooking oil packet retail price has remained at RM2.50 per kilogramme, in contrast to the market price of a one-kilogramme bottle of cooking oil nearing RM7, creating substantial demand for the subsidized option.
The MOE's additional RM257.59 million allocation aims to cover operating expenses at several public universities experiencing cash deficits, including the International Islamic University Malaysia, Universiti Malaysia Sarawak, Universiti Malaysia Sabah, Universiti Teknologi MARA, and Universiti Sains Islam Malaysia. These operational needs encompass various costs such as increased utility charges due to higher electricity and water tariffs, increased contract values due to higher sales and service tax rates, minimum wage implementation, and essential maintenance and repairs.
Amir Hamzah highlighted that public universities could mitigate rising operating costs by generating their own income through tuition fees, professional programs, research, consultancy services, and industry collaborations. On average, these institutions rely on government funding for approximately 75 to 80 percent of their financial needs, mainly covering emoluments and basic operational expenses.
The Dewan Negara session will continue tomorrow.