PUTRAJAYA is continuing efforts to reduce its reliance on Petronas for government revenue, with Finance Minister II Datuk Seri Amir Hamzah Azizan stating that the oil and gas giant’s contribution has already declined from over 40% previously to around 19-20% in 2023.
“For future projections, we aim to bring this down to around 15 per cent to 16 per cent while simultaneously growing other sources of revenue,” he was quoted as saying by The Star.
The government is focusing on economic diversification under the Madani Economy Framework, with foreign direct investment playing a crucial role, especially in sectors like construction, data centers, and new factories.
Malaysia recorded RM378.5 bil in total approved investments last year, with a strong conversion rate from approvals to actual investments.
Amir Hamzah downplayed the idea of bringing back the Goods and Services Tax, saying the government is expanding the scope of the Sales and Services Tax (SST), as announced in Budget 2025.
This move is expected to generate an additional RM5 bil in revenue.
He also highlighted that SST has been in place for over four decades and is more familiar to businesses.
The government collected RM476.1 mil from the Low-Value Goods tax in 2024, introduced on January 1, and RM1.6 bil from the Service Tax on Digital Services, implemented in 2020. —Mar 9, 2025
Main image: Offshore Technology
