KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim says the fifth Madani Budget will be guided by a clear commitment to strengthening the economy while ensuring that economic growth translates into better living standards for Malaysians.
Anwar, who is also Finance Minister, said economic growth alone was insufficient if people continued to face cost-of-living pressures.
“Therefore, Budget 2027 will continue to focus on efforts to ease the burden, protect the people, open up opportunities and ensure that the benefits of development are felt more fairly.
“I will present all the details this Friday, God willing. May all these efforts be made easier and blessed by Allah SWT,” he said in a post on X today.
Earlier today, Anwar briefed members of the media on the Madani Budget 2027, outlining the MADANI Government’s direction and initiatives for the people.
He is scheduled to table Budget 2027 in the Dewan Rakyat at 3.30pm on Friday.
Meanwhile, Malaysia’s fiscal deficit is expected to narrow to RM76 billion, or 3.3% of gross domestic product (GDP), in 2027 from an estimated 3.5% this year, keeping the government on track to achieve its medium-term target of 3% by 2028.
In a research note today, Apex Securities Bhd said Budget 2027 was expected to remain moderately expansionary but controlled, with emphasis on targeted household support, fiscal discipline and productivity-enhancing investments, Bernama reported.
“Our internal estimates indicate government revenue of RM383.3 billion in 2027, up 5.5% year-on-year, while operating expenditure is expected to increase 4.6% to RM378.4 billion.
“Gross development expenditure is projected at RM82.4 billion compared with RM80 billion in 2026,” it said.
The brokerage said Budget 2027, the fifth MADANI Budget and the second under the 13th Malaysia Plan, was expected to balance three priorities: supporting households, strengthening Malaysia’s growth capacity and maintaining fiscal discipline.
It said the increase in development expenditure to RM82.4 billion was positive, although the allocation did not yet signal the need for another round of fiscal stimulus.
For the construction sector, Apex Securities said the main opportunities would come from projects already in the infrastructure pipeline, particularly in transport, highways, water and connectivity in East Malaysia.
On household support, the firm expects combined allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to rise to about RM17 billion from RM15 billion in 2026.
“This should provide direct support to lower- and middle-income households while supporting consumer spending.
“However, the implementation of such support will take into account the fiscal requirements related to energy subsidies,” it said.
Apex Securities said more cautious consumer sentiment, cost-of-living challenges and possible changes to wages and subsidies were likely to encourage households to prioritise essential spending.
The brokerage does not expect any major broad-based new taxes, with key areas to watch including the incorporation of selected goods and services tax (GST) features into the sales and service tax (SST) framework, expanded SST exemptions, wider e-invoicing adoption and the implementation timeline for a carbon tax.
It said artificial intelligence (AI), semiconductors and data centre infrastructure would remain key growth themes, with Budget 2027 expected to reinforce the ongoing investment cycle.
“The data centre boom increases the importance of grid capacity, transmission systems, stable renewable energy supply and energy storage.
“We will focus on whether Budget 2027 extends green investment tax allowances/green income tax exemptions to energy storage, continues support for rooftop solar, clarifies the automatic fuel price adjustment mechanism and provides direction for investment in the energy transition,” it said.
Apex Securities said the introduction of dedicated incentives for energy storage would be a positive development that exceeded expectations.
It added that Budget 2027 was also expected to have a moderately positive impact on the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), although it did not anticipate a broad-based re-rating of the benchmark index.
“Fiscal consolidation remains at the core of policy, while the expected increase in development expenditure is moderate.
“Therefore, the earnings impact is expected to be concentrated in selected sectors, and we maintain our FBM KLCI target at 1,770 points for end-2026,” it said. – October 7, 2026