Malaysia will introduce a slew of new taxes, cut subsidies for a widely used fuel, and raise the minimum wage from next year, Prime Minister Anwar Ibrahim said on Friday as he announced a record budget spending plan of 421 billion ringgit ($98 billion).

Malaysia on Friday unveiled a record budget spending for 2025, focusing on economic restructuring to improve its revenues through subsidy rationalisation and fiscal reforms.

Prime Minister Anwar Ibrahim will be unveiling his third budget at a time of a resurgent economy and a strong ringgit.

Malaysia announced on Friday record budget spending of 421 billion ringgit ($98 billion) for 2025, with the government boosting salaries and retirement funds for civil servants as it pursues further subsidy and tax reforms to bolster revenue.

Malaysian Prime Minister Anwar Ibrahim has submitted to the parliament a budget spending plan for 2025 worth 421 billion MYR (about 97 billion USD), the biggest in history, in efforts to accelerate the country’s journey to become an economic powerhouse in Asia and position it for sustainable growth and resilience.

The budget aims to grow Malaysia’s appeal as a destination for hi-tech investments while also uplifting the country’s most vulnerable groups.

Malaysia will widen the scope of its sales and services tax (SST) and reform the subsidy of a widely used fuel next year, Prime Minister Anwar Ibrahim said on Friday as he announced record budget spending of 421 billion ringgit ($98 billion).