Malaysia’s record spending plan is set to drive further foreign interest in its assets as the government continues to build on its fiscal reforms, even if the immediate impact on equities is muted.

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.

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