Malaysia’s Budget 2025 will be presented today, Friday, October 18, at 4 PM by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim. As with previous budgets, the automotive and transport sectors will be closely monitored for relevant updates.

One key topic expected to be discussed is the rationalization of RON 95 petrol subsidies. Although targeted diesel subsidies have been in place since June 10, it is uncertain whether a similar measure will be introduced for RON 95 at this time. The prime minister previously indicated there were no immediate plans for this, and Economy Minister Rafizi Ramli recently suggested the initiative might be delayed due to positive economic developments.

Analysts also predict that the budget could touch on the possible reintroduction of the goods and services tax (GST) to broaden Malaysia’s tax base. However, Anwar has reiterated, both last year and this week, that there are no immediate or medium-term plans to bring back the GST.

Another likely topic is the postponed High-Value Goods Tax (HVGT). The government initially planned to introduce this tax in May with a threshold of RM200,000 for cars and a rate of 5-10%. However, implementation was postponed to allow further refinement of policies and legal frameworks. The specifics of the tax, including the rate and types of goods it will apply to, remain unknown.

The budget may also cover other key areas, such as the continuation of the My50 public transport pass and updates on road infrastructure projects. More details will be available later today.