PARLIAMENT 2025: FISCAL DISCIPLINE, ECONOMIC REFORMS, SUBSIDY RETARGETING TAKE CENTRE STAGE

KUALA LUMPUR, Dec 18 (Bernama) -- The parliamentary sessions throughout 2025, involving the Dewan Rakyat and the Dewan Negara, saw economic debates focused on fiscal consolidation, structural reforms and efforts to address the cost of living for the people in an uncertain global economic environment.

Fiscal discipline was among the main topics of discussion, with the government repeatedly emphasising the need to reduce the deficit and improve public spending efficiency to ensure the country's financial sustainability in the medium and long term.

In that context, the rationalisation of subsidies was presented as a necessary policy step, but it sparked widespread debate as lawmakers emphasised the importance of transparent and targeted implementation to protect low- and middle-income groups and prevent leakage.

The government also informed Parliament that it is reviewing the phased retargeting of subsidies on essential goods, including sugar, rice and cooking oil, as part of efforts to ensure subsidies reach those who truly qualify and reduce the burden on fiscal expenditure.

Budget 2026 was a major arena for economic debate, with the government outlining priorities for sustainable growth and increased productivity through strategic infrastructure development, technical and vocational education and training, digitalisation and artificial intelligence, and the energy transition agenda.

During the budget debate, the country's revenue structure was also raised, including dependence on petroleum revenue and the need to broaden the tax base, alongside proposals for tax system restructuring and measures to improve compliance as part of long-term fiscal reforms.

Parliament also discussed efforts to strengthen economic competitiveness, including attracting foreign and domestic direct investment, strengthening supply chains, and positioning Malaysia in strategic industries such as semiconductors, electric vehicles, renewable energy, and green technology.

In the energy sector, Parliament passed several important bills in 2025 to support the country's energy transition agenda.

Among them were the Electricity Supply (Amendment) Bill 2025 and the Energy Commission (Amendment) Bill 2025, which aim to regulate electricity import and export activities and introduce green attribute concepts, such as renewable energy credits.

These steps were taken to support regional energy trade and Malaysia's goal of achieving a 70 per cent renewable energy mix.

Parliament also passed the Atomic Energy Licensing Act (Amendment) 2025 [Act A1779], the first amendment to the Atomic Energy Licensing Act 1984 after more than four decades.

The cost of living remained a cross-sectoral issue throughout the session, encompassing food prices, wages and labour markets, with discussions emphasising the need to balance economic reforms and social protection, as well as efforts to increase worker incomes and productivity.

From an economic standpoint, the 2025 Parliament saw several key Bills presented and debated.

Among the bills presented and passed in the Dewan Rakyat and the Dewan Negara were the Supply Bill 2026, Government Procurement Bill 2025, Supplementary Supply Bill 2024/2025, Carbon Capture, Utilisation and Storage Bill 2025, Consumer Credit Bill 2025, and the Countervailing and Anti-Dumping Duties (Amendment) Bill 2025.

Additionally, several bills related to fiscal and taxation were also presented, including the Finance Bill 2025 and the Tax Collection, Administration and Enforcement Measures Bill 2025, reflecting the government's phased approach to revenue reforms.

At the macro level, Parliament also discussed global economic challenges, including geopolitical uncertainty and supply chain disruptions, and their impact on trade, currency values, and financial stability.

-- BERNAMA