DEWAN NEGARA APPROVES SUPPLEMENTARY SUPPLY BILL (2025) 2026

KUALA LUMPUR, March 10 (Bernama) -- The Dewan Negara has passed the Supplementary Supply Bill (2025) 2026 for the first additional operating expenditure for 2025 amounting to RM8.4 billion.

The Bill, tabled by Finance Minister II Datuk Seri Amir Hamzah Azizan, was passed by a majority vote after being debated by 17 senators. 

Of the RM8.4 billion in additional operating expenditure, RM7.9 billion was tabled for approval under the Supplementary Supply Bill 2025, while RM472 million is for charged expenditures and was not debated.

The additional supplementary allocation of RM7.9 billion entails allocations for the Finance Ministry (MOF) (RM6.69 billion), the Domestic Trade and Cost of Living Ministry (KPDN) (RM993.94 million), and the Education Ministry (MOE) (RM257.59 million).

In winding up the debate, Amir Hamzah said the additional allocation had been fully spent in 2025 and did not affect the fiscal deficit target set for the year, which was 3.8 per cent.

In fact, the fiscal deficit has declined to 3.7 per cent to date, he said.

“Although the actual operating expenditure for 2025 was lower than the original allocation approved for the year, several ministries required allocations which exceeds the original amount approved.

“The First Supplementary Operating Expenditure Estimate 2025 of RM8.4 billion was prepared to meet these needs, and this additional amount has already been included in the actual operating expenditure for 2025, which stood at RM330.8 billion.

“This is still below the original operating allocation of RM335 billion approved for 2025,” he said in the Dewan Negara today.

Meanwhile, Amir Hamzah said the government is aware that the development in the geopolitical conflict in West Asia could potentially affect the country’s fiscal position due to rising global commodity prices, particularly crude oil.

“The MOF will continue to monitor international political developments -- ready to take appropriate mitigation measures to ensure the country’s economic and fiscal stability is maintained,” he said.

He said an additional RM993.94 million for KPDN was necessary to accommodate the rise in global crude palm oil (CPO) prices.

“In recent years, average CPO prices have increased, with the market price of refined, bleached and deodorised palm olein reaching RM4,500 per tonne in 2025 compared with less than RM4,000 per tonne in 2023.

“Simultaneously, the retail price of the subsidised one-kilogramme cooking oil packet has been maintained at RM2.50 per kilogramme. Given that the market price of a one-kilogramme bottle of cooking oil is close to RM7, the significant price gap has resulted in strong demand for the subsidised cooking oil packet,” he said.

Meanwhile, the additional allocation of RM257.59 million for the MOE is to cover operating expenditure at several public universities facing cash shortages, namely the International Islamic University Malaysia, Universiti Malaysia Sarawak, Universiti Malaysia Sabah, Universiti Teknologi MARA and Universiti Sains Islam Malaysia.

“The additional operational requirements of public universities cover various expenses, including higher utility costs due to overall increases in electricity and water tariffs, higher contract values due to the increase in the sales and service tax rate from six per cent to eight per cent, the implementation of the minimum wage, as well as urgent maintenance and minor repairs,” he said.

Amir Hamzah said public universities can also generate their own income through tuition fees, professional programmes, research, consultancy services and industry collaborations to help offset rising operating costs.

On average, public universities’ dependence on government funding is at around 75 to 80 per cent, particularly to cover emoluments and basic operating costs.

The Dewan Negara sitting will resume tomorrow.

-- BERNAMA