Anwar set to boost budget spending as election speculation grows
Malaysian Prime Minister Anwar Ibrahim is expected to prioritize cost-of-living relief and support for key industries in the upcoming 2027 budget. With a general election looming, the government faces the challenge of balancing fiscal consolidation with the need to court voters.
Why it matters
The budget serves as a critical political tool for the incumbent government to address economic dissatisfaction and secure electoral support.
Prime Minister Anwar Ibrahim acknowledged that the country’s strong economic performance has yet to translate into an improved sense of economic well-being for many Malaysians.
KUALA LUMPUR: Prime Minister Anwar Ibrahim is expected to tackle rising living costs in potentially his government’s last budget before he calls a general election.
Anwar, who is also the finance minister, is likely to prioritise cash handouts to middle-income groups when he presents the 2027 spending plan to Parliament on Friday.
He’ll also likely provide more support for the semiconductor and renewable energy sectors, and aim to boost existing revenue streams instead of unveiling new taxes, economists said.
The 79-year-old prime minister, whose Pakatan Harapan coalition has suffered setbacks in a succession of state elections, is trying to court voters and is said to be considering calling nationwide polls in the second half of next year, ahead of the February 2028 deadline.
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