‘Budget 2027 to focus on growth’
Economists suggest that Malaysia's upcoming Budget 2027 will likely be expansionary and people-centric to address cost-of-living pressures. The budget is expected to maintain fuel subsidies while targeting a fiscal deficit of 3.5%.
Why it matters
Fiscal policy decisions in Malaysia impact economic growth, inflation, and the financial stability of the M40 middle-income group.
PETALING JAYA: The six measures announced by the Prime Minister on the eve of National Day are indications that Budget 2027 could be expansionary and more people-centric, say economists.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Budget could target a fiscal deficit-to-GDP ratio of about 3.5%.
“I think it’s going to be an expansionary budget and the target for fiscal deficit-to-GDP ratio probably in the region of 3.5% of gross domestic product (GDP).”
He said the measures announced would help contain the risk of higher inflation in the second half of the year, particularly with increased allocations for subsidised fuel.
Sunway University economics professor Dr Yeah Kim Leng said Budget 2027, which is expected to be tabled on Oct 9, is also likely to be expansionary.
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