Budget 2025: An Inclusive Growth Strategy – A Critical Analysis for the Malaysian Indian Community

By Ts. Dr. Manivannan Rethinam
Chairman, Majlis Gagasan Malaysia

The unveiling of Budget 2025 by YAB Dato’ Seri Anwar Ibrahim marks a pivotal moment for Malaysia’s economic trajectory, emphasising sustainable growth, fiscal discipline, and inclusive policies. While the budget offers promising initiatives, a thorough analysis reveals significant gaps in addressing the specific needs of the Malaysian Indian community. This critique evaluates the strengths of the budget alongside the shortcomings that must be addressed to enhance the welfare of Indian Malaysians.

Empowering Education and Skills Development

Budget 2025 prioritises Technical and Vocational Education and Training (TVET), aiming to equip the workforce with skills for burgeoning industries like digital technology, AI, and green industries. This presents a crucial opportunity for Indian youths, particularly from lower-income families, to gain employment in these growth sectors.

However, the reduction in universal education subsidies compared to Budget 2024 raises concerns for middle-income Indian families (M40). While B40 households receive continued support, the M40 segment faces increased financial burdens without the broader scholarship opportunities and financial aid previously available. This shift restricts access to higher education for many Indian students, exacerbating socio-economic disparities.

Fostering Economic Empowerment: Absence of MITRA in Budget 2025

One of the critical omissions in Budget 2025 is the absence of the MITRA (Malaysian Indian Transformation Unit) fund, which previously provided essential financial assistance for various initiatives within the Indian community. Though there is a RM130 million allocation for social and welfare programmes, the lack of explicit mention of MITRA raises uncertainties about the continuity of vital support programmes.

While it remains to be seen how this broader allocation will be utilised, the lack of clarity undermines confidence in ongoing support for Indian businesses. Access to capital is vital for growth, and the absence of a clear framework for financial assistance may hinder the ability of businesses within the community to thrive.

Social Welfare and Targeted Subsidies

The transition in Budget 2025 from blanket subsidies to targeted subsidies aims to prioritise assistance for the B40 group, which encompasses many Indian households. This focused approach helps ensure support for essential goods, electricity, and healthcare for the most vulnerable.

However, this strategy neglects the M40 Indian community, which faces rising living costs without sufficient relief measures. This middle-income segment, often caught between qualifying for subsidies and managing escalating expenses, requires specific attention to mitigate the financial pressures of inflation.

Healthcare Accessibility and Public Services

The Indian community faces a high prevalence of non-communicable diseases (NCDs), including diabetes, hypertension, and heart disease. While Budget 2025 invests in healthcare infrastructure, it does not specifically address the pressing health challenges that significantly affect Indian Malaysians.

Unlike the previous budget, which included broad healthcare improvements, the current budget lacks initiatives aimed at preventing and managing NCDs, which are particularly urgent for many Indian families. Targeted efforts to improve health outcomes for this community are essential, especially for those in rural areas who often experience limited access to healthcare services. Such initiatives could help alleviate the healthcare burden and promote better overall health within the Indian population.

Cultural and Community Development

Another shortcoming of Budget 2025 is the lack of support for Indian cultural heritage. While Budget 2024 allocated funds for the development and maintenance of Indian temples, cultural centres, and heritage sites, this year’s budget provides no specific funding for cultural preservation. The absence of support for these institutions risks diminishing the community’s cultural identity and vibrancy.

What is Lacking for the Indian Community?

1. Targeted Financial Support for Indian-Owned Businesses: The absence of dedicated financing programmes for Indian entrepreneurs is a significant oversight. Specific initiatives aimed at empowering Indian SMEs could enhance their competitiveness and growth potential.
2. Scholarships and Educational Assistance: The lack of targeted scholarships for Indian students pursuing higher education is a major concern. Enhanced financial support is essential to alleviate the rising costs faced by families and to ensure equitable access to educational opportunities.
3. Healthcare Initiatives: Given the community’s high rates of NCDs, the absence of community-specific healthcare programmes in Budget 2025 represents a critical gap. Targeted initiatives could improve health outcomes and alleviate the healthcare burden on Indian Malaysians.
4. Cultural and Heritage Support: Without dedicated funding for Indian heritage sites and temples, the community may struggle to preserve its cultural legacy. Government support is crucial for maintaining the cultural fabric of the Indian community in Malaysia.

Conclusion

While Budget 2025 aims for inclusive growth and sustainable development, it falls short in addressing key areas vital to the socio-economic progress of the Malaysian Indian community. The absence of a clear MITRA fund allocation and insufficient targeted support initiatives raise concerns about the continued advancement of Indian Malaysians.

A more focused approach—characterised by specific initiatives to uplift the Indian community—is essential to ensure that Budget 2025 not only contributes to Malaysia’s national development but also fosters the equitable inclusion of all communities.