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THE Ministry of Finance (MoF) has published its Malaysian Economy report for the first quarter of 2025, detailing a promising outlook for the nation’s fiscal consolidation efforts under the MADANI Government.
Issued quarterly as part of a commitment to enhanced transparency and accountability, the report highlights improvements in the country’s macroeconomic performance and fiscal position.
In its latest edition, the MoF noted that “the Federal Government secured a lower quarterly fiscal deficit as at end-March 2025 at RM21.9 billion (end-March 2024: -RM26.4 billion) attributed to better revenue collection and expenditure optimisation in consonance with fiscal consolidation initiatives”.
Revenue collection for the quarter climbed by three per cent year-on-year to RM72.1 billion, a recovery driven by “higher tax collection, particularly from a surge in Sales Tax and Service Tax (SST) receipts as well as higher collection of individual income tax.”
Total government expenditure contracted by 2.5 per cent to RM94.2 billion, primarily due to “lower subsidy spending following the implementation of the diesel subsidy retargeting programme as well as supported by lower global oil price.”
Despite this reduction, the ministry confirmed that “targeted social assistance programmes including Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), Fish Landing Incentive and Paddy Price Subsidy Scheme have been strengthened.”
Operational efficiency gains also allowed “grants to statutory bodies (to be) optimised due to operational efficiency and effectiveness of the agencies.”
In a release today MOF added that Malaysia’s real GDP expanded by 4.4 per cent in Q1 2025, surpassing the 4.2 per cent growth recorded in the same period last year.
This was “driven by resilient domestic demand and sustained recovery across key sectors such as services, manufacturing, and construction”.
The full report is available via the Ministry’s official website: [https://mof.gov.my/portal/pdf/ekonomi/suku-tahunan/](https://mof.gov.my/portal/pdf/ekonomi/suku-tahunan/). - May 22, 2025
