KUALA LUMPUR, 11 March 2025 – Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed the government’s commitment to creating a fairer national tax system, ensuring equitable contributions from corporations and high-income earners while supporting Malaysia’s economic development.
The Call for a More Equitable National Tax Structure
Speaking at the National Economic Conference 2025, PM Anwar highlighted the need to modernize Malaysia’s tax system, ensuring that it does not burden lower and middle-income Malaysians while generating sufficient revenue for national growth initiatives.
“A just and fair tax system is essential to building a resilient economy. We must ensure that corporations and high-income groups contribute fairly while protecting the financial well-being of ordinary Malaysians,” said Prime Minister Anwar Ibrahim.
Key Focus Areas National Tax Reform
The government’s plan includes:
- Strengthening Progressive Taxation – Reviewing corporate tax structures to ensure higher contributions from large multinational corporations.
- Wealth Tax Consideration – Exploring possible taxation on high-net-worth individuals while ensuring economic competitiveness.
- Digital Economy Taxation – Implementing tax policies for digital businesses and e-commerce platforms.
- Broadening the Tax Base – Reducing reliance on oil revenues by diversifying tax collection mechanisms.
- Reducing Tax Evasion – Enhancing enforcement against corporate tax avoidance and illicit financial flows.
Balancing Economic Growth and Social Welfare
PM Anwar stressed that Malaysia’s tax reform must strike a balance between maintaining an investor-friendly business environment and ensuring the nation’s fiscal sustainability.
“We will implement tax policies that encourage business growth while ensuring that economic gains are shared fairly among all Malaysians,” Anwar added.
Implications for Businesses and Citizens
- For Businesses – A stronger corporate tax framework will ensure that multinational corporations contribute their fair share without discouraging investments.
- For Citizens – The government aims to keep income taxes manageable for middle-income Malaysians, while exploring tax relief measures for small businesses and startups.
- For Investors – The tax reforms will be implemented gradually, ensuring minimal disruptions while maintaining a competitive investment climate.
Will There be New National Tax Reform Policies
The Finance Ministry is expected to table new tax reform policies in Parliament later this year, with public consultations being held to gather feedback from industry leaders, economists, and tax experts.
With Malaysia’s commitment to building a fair and progressive tax system, businesses and citizens alike can expect a more balanced, transparent, and growth-oriented economic framework in the coming years.
For further updates on Malaysia’s tax reforms, economic policies, and business developments, stay connected with ForwardMalaysia.my.
