Malaysia Plans RM459.8 Billion 2027 Budget

On Oct 9 in Putrajaya, Prime Minister Anwar Ibrahim held the 2027 budget document at the Finance Ministry before departing for Parliament to table it. The budget totals 459.8 billion ringgit, about 4% higher than 2026's revised 444.1 billion ringgit, with 83 billion ringgit in development expenditure and 376.8 billion ringgit in operating expenditure. Revenue is projected to rise 4.7% to 380.8 billion ringgit. Petronas will pay a 32 billion ringgit dividend in 2027, up from a revised 27 billion in 2026. The 2026 deficit target was raised to 3.6% of GDP from 3.5%, with the 2027 deficit projected at 3.3%. Anwar said this does not represent a departure from fiscal consolidation and demonstrates the value of having built the capacity to respond when circumstances demand it. Subsidies and social assistance in 2026 are expected to reach 74.5 billion ringgit, up 34.7% from 2025. Growth is forecast at 4.2% to 5.2% in 2027; 2026 is expected at the upper end of 4.8% to 5.3% after 5.7% growth in the first half. Inflation is forecast at 1.8% to 2.8% in 2027. The central bank held its benchmark rate at 2.75% through 2026. A government economic outlook report said uplifting wages in labour-intensive MSMEs must be the primary focus to rebuild the wage ladder. Analysts said Anwar may review the minimum wage, now 1,700 ringgit a month.