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KUALA LUMPUR, 9 Oct: Prime Minister Datuk Seri Anwar Ibrahim who is also Finance Minister will present Budget 2027 in the Lok Sabha at 3.30 pm this afternoon, half an hour earlier than usual time of 4 pm.
The Fifth MADANI Budget, entitled "MADANI Malaysia: Sailing in the Sky, Rooting on Earth", is the second budget under the 13th Malaysia Plan (RMK-13). The budget was presented as the government intends to maintain economic momentum while raising the country's growth ceiling, improving people's living standards and strengthening its administration.
With the economy on a solid foundation, the focus of Budget 2027 is to maintain that momentum. The economy is projected to grow 6.0 percent in the second quarter of 2026, while year-over-year growth is expected to remain within the government's forecast range of 4.0 to 5.0 percent.
Based on these developments, fiscal policy remains important in supporting economic growth as well as strengthening fiscal resilience, particularly amid external uncertainty, high energy costs and ongoing price pressures.
Efforts to improve public spending efficiency, strengthen revenue mobilisation and reduce attrition are expected to remain part of the government's fiscal strengthening agenda.
The rationalization of subsidies, which are among the key fiscal instruments, will continue to be an important consideration as governments seek to ensure that public resources are channelled more effectively through targeted assistance and productive economic activities.
In this case, the challenge is to maintain fiscal space while ensuring that subsidy renewals do not affect household consumption or increase operating costs for businesses.
Spending on development will continue to be an important component in supporting economic activity and addressing infrastructure gaps, with spending expected to focus on projects that enhance connectivity and productivity.
Water supply infrastructure, flood control, rural development, utilities and electricity grids, especially in Sabah and Sarawak as well as other underserved areas, may remain among the main focused areas.
In terms of investments, Budget 2027 is expected to strengthen Malaysia's transition towards higher value economic activity, with greater emphasis on industries capable of generating high productivity, quality employment opportunities and technology transfer.
Continuous investments in digitization, artificial intelligence (AI), advanced manufacturing as well as energy, water and digital support infrastructure will be important components to strengthen Malaysia's competitiveness and position in the supply chain in the region.
The next focus in the budget this time is on small and medium enterprises (SMEs) as well as micro, small and medium enterprises (SMEs) which will be introduced with measures to increase productivity, facilitate ways of using technology and strengthen access to finance.
This is particularly needed by them when faced with operating costs and higher wage pressures.
In addition, a stronger domestic business ecosystem will also help ensure investment and economic expansion generate wider chains across the economy.
In the end, Budget 2027 will not be judged solely on the size of its allocation, but rather on the extent to which fiscal resources can effectively translate into sustainable growth, productive investment, stronger domestic businesses and quality employment opportunities, while ensuring that public finances remain on a sustainable footing.
The next challenge is to ensure that Malaysia's economic resilience can translate into a stronger foundation for the next phase of growth under the MADANI Economy framework. - TVS
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