Malaysia's 2025 budget is an ambitious bid to unlock investment

But labor shortages and misaligned education systems raise feasibility concerns

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Prime Minister Anwar Ibrahim holds the 2025 Malaysia budget document at the Finance Ministry building, as he departs for parliament, in Putrajaya, Malaysia, on Oct. 18. © Reuters

Doris Liew is an economist and assistant research manager at IDEAS Malaysia.

Building upon economic momentum from the first half of this year, Malaysia's 2025 budget introduces several ambitious measures aimed at boosting the country's competitiveness. While it outlines new economic clusters, tax incentives and talent development strategies, the hurdles Malaysia faces -- ranging from labor shortages to misaligned education systems -- raise concerns about the feasibility of fully capitalizing on emerging opportunities.

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