Pre-Budget Statement 2027

1. INTRODUCTION

Budget 2027 is the fifth MADANI Budget. It seeks to build on the gains of the Ekonomi MADANI framework and carry Malaysia forward. As the second budget under the Thirteenth Malaysia Plan (Thirteenth Plan), it is guided by three priorities: Raising the Ceiling for national growth, Raising the Floor for the people’s living standards, and Driving Reform in Governance.

The year 2026 has been a sobering reminder that, in an increasingly unsettled world, stability cannot be taken for granted. The protracted conflict in West Asia drove crude oil prices above US$100 a barrel and sent shockwaves through global supply chains. Yet Malaysia has held its ground. The structural reforms pursued since the first MADANI Budget, from fiscal consolidation and targeted subsidies to a broader base of growth, have given the economy and the people a buffer against the shock.

Budget 2027 must balance two pressing imperatives: protecting households from the strain of the energy crisis and rising living costs, while laying the foundations for a higher-value, more sophisticated economy. It remains faithful to the MADANI administration’s priorities: driving productivity- and innovation-led growth, accelerating the energy transition, strengthening food security, advancing digitalisation and artificial intelligence (AI), and developing highly skilled talent.

This is a people's budget. It is shaped around outcomes, taking into account public feedback, the concerns of businesses and the counsel of stakeholders.

2. THE MADANI ADMINISTRATION: THREE AND A HALF YEARS OF RESULTS

The MADANI Government inherited a country under strain. Global uncertainty was weighing on the economy, while Malaysia was already saddled with a staggering debt burden of RM1.2 trillion, equivalent to more than 60% of GDP in 2023. Corruption and abuse of power in public office were systemic. Investment had yet to regain its pre-pandemic strength. The strain was felt most acutely by ordinary Malaysians: food inflation reached 5.8% in 2022, while unemployment stood at 3.9%.

The MADANI Government moved with resolve to rebuild public confidence and restore Malaysia’s standing in the eyes of the world. In just three and a half years, its reforms have begun to unpick the structural knots that long held the country back. The Ekonomi MADANI framework has guided policies and measures across government, with results now evident across its three pillars.

Good Governance in Public Administration

• Governance reform has been a priority of the MADANI Government from the outset. This encompasses fiscal discipline, combating corruption, ease of doing business, and the management of development projects in the public interest.
  
  
• Governance reform was swiftly advanced through the establishment of the STAR Team, a Special Task Force on Agency Reform led by the Chief Secretary to the Government, to reform the public service and government agencies and to resolve high-impact bottlenecks in infrastructure and digitalisation.
  
  
• Fiscal discipline has been restored through choices that were neither easy nor ornamental: the Public Finance and Fiscal Responsibility Act 2023 [Act 850], the Government Procurement Act 2026 [Act 882] and the targeting of subsidies. The fiscal deficit has narrowed steadily, from 6.4% in 2021 to 5.5% in 2022, 5.0% in 2023, 4.1% in 2024 and 3.7% in 2025. New borrowing has correspondingly fallen, from RM100 billion in 2021 and 2022 to RM92.6 billion in 2023, RM77 billion in 2024 and RM75.6 billion in 2025.
  
  
• Comprehensive subsidy targeting has at last become a reality. The overwhelming majority of Malaysians have not lost out: subsidies remain intended to benefit the people, while the changes chiefly affect foreign nationals and large businesses. Floating chicken and egg prices, together with the targeting of electricity, diesel and RON95 petrol subsidies, has generated savings around RM15.5 billion a year. Those savings are now helping Malaysia absorb a fuel subsidy bill that could reach RM40 billion this year as the conflict in West Asia drives energy prices higher.
  
  
• MADANI initiatives, such as Sejati MADANI, Kampung Angkat MADANI and Sekolah Angkat MADANI are built on a simple principle: resources should follow needs on the ground. Dilapidated schools and clinics, and pothole-ridden roads, have therefore been given priority from the outset.

Raising the Ceiling

• Malaysia's economy has once again outperformed expectations, even as the global energy crisis raged. GDP grew by 6.0% in the second quarter of 2026, beating the Bloomberg survey median forecast of 5.2% and DOSM's advance estimate of 5.8%. Growth has strengthened steadily under the MADANI administration, from 3.6% in 2023 to 5.2% in both 2024 and 2025. Robust domestic demand, private investment and the breadth of activity under Visit Malaysia Year 2026 (VMY2026) should keep the momentum intact, with full-year growth potentially approaching the upper end of the 4.0% to 5.0% range.
  
  
• Approved investment has set new records year after year, rising from RM267.8 billion in 2022 to RM329.5 billion in 2023, RM384.4 billion in 2024 and RM431.1 billion in 2025. This is the product of a more coherent investment strategy: the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR) and the National Semiconductor Strategy (NSS), reinforced by the GEAR-uP Programme. Through GEAR-uP, government-linked investment companies (GLICs) are directing domestic capital into high-growth, high-value industries.
  
  
• External trade has crossed a threshold once thought distant. Total trade exceeded RM3 trillion for the first time in 2025, reaching RM3.06 trillion, 6.3% higher than in 2024. Malaysia has remained resilient through the global crisis; from January to June 2026, total trade rose by 22.4% to RM1.80 trillion, compared with RM1.47 trillion in the same period a year earlier.
  
  
• The ringgit was Asia's best-performing currency in 2025, appreciating by around 10.2% against the US dollar. Bursa Malaysia rose above the 1,700-point mark again. International credit-rating agencies maintained Malaysia's ratings at A3 by Moody's Ratings and A- by S&P Global Ratings, both with stable outlooks. Those judgments reflect a diversified, competitive economy and firm medium-term prospects, further strengthening investor confidence in Malaysia.
  
  
• Malaysia's competitiveness has risen by 19 places in just two years, from 34th in 2024 to 23rd in 2025 and then 15th in the IMD World Competitiveness Ranking 2026, its best result since 2015. This improvement reflects the effectiveness of integrated reforms to raise the efficiency of government and business, alongside improvements in infrastructure.

Raising the Floor

• Cash assistance for the people has reached a historic high. The 2026 allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) totals RM15 billion, with assistance of up to RM4,600. This exceeds Bantuan Rakyat 1Malaysia in 2018 (RM6 billion; up to RM1,200) and Bantuan Keluarga Malaysia in 2022 (RM8 billion; up to RM2,500). More importantly, these benefits are not reserved only for the poor. Under SARA for All, 22 million people receive RM100 in SARA assistance; a family of five may therefore receive RM500.
  
  
• BUDI MADANI has made subsidised petrol and diesel more affordable for the people, at RM1.99 and RM2.10 per litre respectively. Even as global market prices rise, the reform has protected both the country's fiscal resilience and the people's interests. BUDI95 benefits 14 million active users. Against a RON95 retail price of RM3.62 per litre as at 18 August 2026, it saves people RM326 a month, or RM3,912 a year. BUDI Diesel delivers savings of up to RM711 a month, or RM8,532 a year, against the pump price of RM4.47 per litre as at 18 August 2026.
  
  
• The Decent Wage Agenda remains a priority under the MADANI administration. The minimum wage has been raised to RM1,700 a month from RM1,200 before May 2022. Civil servants' salaries, which had not been reviewed for more than a decade, have also been raised by up to 15% under the Public Service Remuneration System (SSPA), with an additional allocation of RM18 billion. A Living Wage of RM3,100 a month has also been adopted by GLICs and GLCs as a commitment to support household income growth and domestic spending.
  
  
• The labour market has remained resilient amid global uncertainty and continues to operate at full employment, with unemployment as low as 2.9% in the first quarter of 2026, the lowest rate in 11 years.
  
  
• Essential goods are more readily available, supply is more assured, and prices are lower under the MADANI administration. Jualan Rahmah MADANI has been increased to weekly programmes in every state constituency, with up to 30,000 programmes targeted for 2026. Policies to manage essential goods are also showing results: after chicken and egg prices were floated, prices are lower and supplies uninterrupted, while improvements in the management of RM2.50 cooking-oil packets reserved for the people have made them easier to obtain than before.
  
  
• Inflation has remained under control at 1.9% in June 2026, far below the 4.0% recorded in November 2022, when MADANI took office. Despite the surge in global energy prices, the effective implementation of a range of measures has prevented sudden increases in the prices of goods.
  
  
• The people's savings funds have also returned respectable dividend rates. The Employees Provident Fund’s (EPF) conventional savings dividends rose from 5.35% in 2022 to 6.15% in 2025; Shariah savings dividends from 4.75% to 6.15%; Amanah Saham Bumiputera (ASB) from 4.60% to 5.75%; Tabung Haji from 3.10% to 3.50%; and the National Education Savings Scheme (SSPN) from 3.05% to 4.10%. This reflects the efficient stewardship of the people's funds and a strong economy under the MADANI administration.

Bumiputera Agenda

The Bumiputera Agenda has been strengthened under the MADANI Government. Bumiputera empowerment continues to be driven through the Bumiputera Economic Transformation Plan 2035 (PuTERA35). Under the MADANI Government, 50 acres of land within the strategic Bandar Malaysia development have been reserved as Malay Reserve Land to ensure that development does not overlook the interests of the people. Permodalan Nasional Berhad (PNB) and Pelaburan Hartanah Berhad (PHB) have also expanded cooperation to develop Malay Reserve Land for affordable housing, student accommodation and commercial development.

Middle-Income Malaysians

• The first MADANI Budget focused on middle-income Malaysians (M40). Beginning in 2023, the personal income-tax rate for resident taxpayers was reduced by 2 percentage points for every income band above RM35,000 up to RM100,000. This reduction provided around 2.4 million taxpayers with up to RM1,300 in additional disposable income.
  
  
• The MADANI Government has also introduced many initiatives to benefit the M40. In addition to RM150 in Early Schooling Aid for every pupil and two rounds of RM100 SARA for All for all citizens aged 18 and above, many tax reliefs have been provided to ease the cost of living for middle-income Malaysians. These include early childhood education costs (up to RM3,000), rehabilitation treatment for children with learning disabilities (up to RM10,000), insurance/takaful premium payments (with relief extended to cover children), and first-home purchase costs (first-home stamp-duty exemption).

3. BUDGET 2027 FOCUS AREAS

Budget 2027 is framed around 10 focus areas. Together, they will guide policy and consultation with the public, businesses and stakeholders. All 10 areas remain rooted in the three pillars of the MADANI Economy and the priorities of the Thirteenth Plan. They will be refined in light of feedback received before being finalised in Budget 2027.

The people are the priority across every focus area of Budget 2027. Each policy, initiative and allocation must deliver tangible benefits, whether by easing cost-of-living pressures, raising incomes, opening quality jobs or securing a more dignified life. The people's voices shall be heard, their concerns met with care, and their hopes translated into action. Budget 2027 is determined to ensure that economic progress is genuinely felt and national prosperity fairly shared. This is a budget born of the people's pulse, driven for the people and presented for their future.

First: Social Justice and Development for All

Inclusive development requires that every state, region and community enjoy equitable access to economic opportunities, public services and quality basic facilities. Budget 2027 is determined to further narrow regional development gaps, with a focus on Sabah, Sarawak, rural and interior areas, and communities that continue to lack basic infrastructure. At the same time, development strategies will be tailored to the strengths and potential of each state so as to stimulate more balanced and sustainable growth.

Community development will continue to be strengthened as the foundation of people's well-being and local economic resilience. Priority will be given to empowering MSMEs, cooperatives, the social economy, youth, women and vulnerable communities, while strengthening community-based development through close cooperation among the Federal Government, state governments, local authorities, the private sector and society. Attention will also be given to improving the affordability of home ownership and rental, strengthening public transport, improving urban liveability, and ensuring development is more planned and inclusive.

National unity will remain at the heart of the national development agenda. A fairer distribution of opportunity, equitable service delivery and active community participation in development will strengthen ties across regions and ethnic communities, while ensuring that every Malaysian feels part of the country's progress.

Public feedback is sought on the following:

• Which economic sectors or local advantages should be strengthened to spur development according to the potential of each state or region?
  
  
• How can Bumiputera participation and ownership in the economy be increased to narrow economic disparities?
  
  
• How can community development, including the empowerment of youth, women, cooperatives and MSMEs, be strengthened to improve people's well-being?; and
  
  
• What measures can improve the affordability of owning or renting a home, strengthen public transport and enhance urban liveability?

Second: Protecting the People Against Cost-of-Living Pressures

The MADANI Government's foremost priority remains the people's welfare. Ongoing improvements to the targeting of subsidies and social assistance will be implemented using available data and clear eligibility criteria.

The Government will undertake a comprehensive assessment of household pressures, covering food, housing, transport, healthcare, education and childcare. It will explain plainly how fiscal savings from targeted subsidies are channelled back into programmes that protect the people and strengthen essential services.

The purchasing power of vulnerable groups will continue to be protected through STR, SARA and BUDI MADANI; the prices of essential goods will be stabilised through enforcement, Jualan Rahmah MADANI and strategic supply management; and incomes will be raised through progressive wages, high-skilled job opportunities and community income-generation programmes such as Sejati MADANI. The experience of the 2026 crisis shows that data-driven systems of targeted subsidies and assistance can respond swiftly to protect those most affected.

Public feedback is sought on the following:

• Which cost-of-living pressures weigh most heavily on households and should be prioritised in Budget 2027?
  
  
• How can government assistance and subsidies be better targeted so that no one in need is left behind?
  
  
• How can government assistance help recipients transition into more sustainable jobs or sources of income?; and
  
  
• What forms of social protection should be strengthened to help the people withstand economic shocks or a loss of income?

Third: Strengthening Social Protection for Affected Families

In the face of demographic change, Budget 2027 will reassess the adequacy and sustainability of Malaysia's social protection system, including coverage under the EPF, Social Security Organisation (SOCSO) and related schemes. Priority will be given to extending protection to informal workers, gig workers and vulnerable groups so that more people have an adequate social safety net throughout their lives.

Malaysia is expected to become an aged society by 2030, when around 15% of the population will be aged 60 and above. Preparations must therefore begin now to ensure that retirement systems, healthcare, the care economy and community support are able to meet the needs of an ageing society.

The Government will also strengthen the development of the care economy as a new growth sector by expanding long-term care capacity, community-based care, skills development for care workers, service standards, and more comprehensive support for women, single parents, persons with disabilities and households with care responsibilities.

Public feedback is sought on the following:

• What effective measures can sustainably extend social protection to gig workers, informal workers and the self-employed?
  
  
• How can we improve the adequacy of retirement savings and secure people's well-being in old age?
  
  
• What steps are needed to profesionalise care work and develop the care sector to meets the needs of an ageing society?; and
  
  
• What forms of support are most needed by individuals or families responsible for the care of older persons, persons with disabilities or family members requiring long-term care?

Fourth: Empowering Education, Healthcare and Essential Services

Quality essential services are the foundation of people's well-being, higher productivity and public confidence. Budget 2027 will continue strengthening education, healthcare and public-service delivery to make them more efficient and inclusive, ensuring every Malaysian has a fair chance to improve their standard of living.

Education reform must emphasise literacy and numeracy, TVET, STEM, digital and AI capabilities, language proficiency and character development. The National Education Council will lead education reform in line with the Thirteenth Plan, particularly efforts to narrow education gaps across regions and socioeconomic groups, while ensuring that the system continues to produce high-quality talent.

Efforts will focus on expanding access to affordable, quality healthcare; reducing congestion at public facilities; strengthening the health workforce; and improving disease prevention. The Ministerial Joint Committee on Private Healthcare Costs will continue to lead integrated public-private efforts to address rising treatment costs.

The maintenance and functionality of schools, universities, clinics, hospitals and public facilities will remain a central agenda, alongside ensuring access to mobility, water, electricity and broadband connectivity for all Malaysians.

The key questions for public feedback are:

• What improvements are needed in the education system to raise learning quality and equip pupils with future skills?
  
  
• How can access to quality healthcare be improved while reducing congestion at public hospitals and the cost of treatment?
  
  
• What measures can strengthen the role of higher education institutions as drivers of research, innovation and talent development?; and
  
  
• What improvements are needed in higher education to ensure graduates possess skills relevant to the future economy, including AI and the digital economy?

Fifth: Spending That Delivers the Best Value for the People

The 2026 energy crisis demonstrated the indispensable role of fiscal resilience. Prudent financial management has given the Government the fiscal space to protect the people when shocks strike.

In general, the MADANI Government continues to strike a balance between fiscal discipline and the need to support growth and public spending. Priorities include improving subsidy management, raising spending efficiency without compromising the people's welfare, improving tax compliance, and ensuring every ringgit spent delivers the best value for the people.

Best value is not simply about choosing the cheapest option. It is about ensuring that every programme and project genuinely solves people's problems and delivers lasting benefit. Allocations must go to the most pressing priorities, including better healthcare and education services, basic infrastructure, stronger social protection and economic opportunity.

At the same time, leakages, overlapping programmes and delays in implementation must continue to be addressed. Outcome-based monitoring will be strengthened so that success is not measured only by the amount spent, but by tangible changes experienced by the people, whether in shorter waiting times, lower costs, higher incomes or better services.

Public feedback is sought on the following:

• How can government subsidies be better targeted?
  
  
• Which forms of assistance or incentives should be improved to make them more effective?
  
  
• What types of government spending should be prioritised to deliver the greatest benefit to the people?
  
  
• How can the Government measure the outcomes of a project or programme so that people may assess its impact?

Sixth: Governance and the Best Delivery of Public Services

The next phase of reform is to move from legislation to measurable implementation and a better experience for the people. This includes strengthening reforms in fiscal management, procurement, audit, anti-corruption and public-service efficiency, as well as reducing regulatory burdens and approval times, particularly for investment and business expansion.

Budget 2027 will continue to expand GovTech initiatives, digital identity, cross-agency data integration and end-to-end digital public services. The performance of ministries and agencies will be strengthened, including through the publication of key performance indicators (KPIs) for public assessment. Delivery performance must become a culture, not merely a target.

Much of the reform legislative framework is already in place, including Act 850, Act 882 and amendments to the Audit Act. Institutional strengthening will continue through the parliamentary reform agenda and the enactment of, among others, the Government-Owned Entities Bill, Ombudsman Bill and Freedom of Information Bill, in support of the commitments under the National Anti-Corruption Strategy 2024-2028. The greatest challenge behind every policy is delivery.

Public feedback is sought on the following:

• Which experience of dealing with the Government has been most difficult, and which improvements should be given priority?
  
  
• Which government approvals or dealings place the greatest burden on people and businesses, and should therefore be simplified or digitalised without delay?
  
  
• What steps can be taken to improve transparency and accountability in public-service delivery?
  
  
• How can the Government strengthen public confidence in the integrity of public institutions?; and
  
  
• Which governance reforms are important to protect the interests of the people?

Seventh: Prioritising Workers' Welfare and Decent Wages

A higher industrial standard must translate into higher labour productivity, better and more decent wages, and greater worker mobility. Budget 2027 will expand industry-led TVET, apprenticeships and reskilling programmes aligned with strategic sectors, alongside AI literacy, digital capability and lifelong learning for workers and SMEs.

Employers will be more deeply involved in curricula, training equipment and job placements. Excessive reliance on low-skilled foreign labour will continue to be reduced through automation and better workforce planning, so that the gains from economic growth are reflected in higher wages for Malaysians. Sustainable wage growth can only be achieved through productivity gains.

To optimise women's contribution to the economy, the target of 60% female labour-force participation will remain a priority. Measures include investment in quality, affordable childcare infrastructure; incentives for flexible work arrangements; incentives for employers to bring women back into work; and women's skills and entrepreneurship programmes.

Views are sought on the following questions:

• How can the country reduce youth unemployment?
  
  
• What improvements can ensure that TVET and apprenticeship programmes meet industry needs and enhance graduates' employability?
  
  
• What incentives are most effective in encouraging employers to invest in workers' skills development and the adoption of AI and digitalisation?
  
  
• What measures are most effective in reducing reliance on low-skilled foreign labour without affecting economic growth?
  
  
• What forms of support are most needed to increase women's participation in the labour force?

Eighth: Competitive Home-Grown Entrepreneurs and “Made by Malaysia”

Malaysia needs to empower more local companies that can innovate, grow and compete in ASEAN and global markets. Budget 2027 will continue to focus on growth-stage financing for start-ups and mid-sized companies, innovative SMEs, and the diversification of export markets.

Local entrepreneurs continue to face challenges in starting businesses, scaling up operations, entering new markets and surviving international competition. Government support must therefore cover access to financing, technology, talent, certification, marketing networks and opportunities to enter the supply chains of larger companies and global markets.

Government procurement and GLICs will be used judiciously to catalyse local innovation, subject to demonstrable value for money. Home-grown Malaysian businesses should be given room to prove the quality of their products and services, build a track record and grow into industry leaders, without compromising competition, transparency and good governance.

The path from university research and public R&D to commercial use will continue to be strengthened, as introduced in Budget 2026. The “Made by Malaysia” aspiration will be reinforced to produce products, technologies and intellectual property designed, developed and owned by Malaysians, creating high-value jobs, raising incomes and generating national wealth.

Consultation on this focus area will centre on the following questions:

• What forms of financing or support are most needed to help local companies grow and compete regionally and globally?
  
  
• What are the main obstacles preventing local companies from expanding into international markets?
  
  
• How can government and GLIC investment be used to strengthen innovative local companies and “Made by Malaysia” products?; and
  
  
• What are the best measures to accelerate the commercialisation of research by universities and public research institutions?

Ninth: Growth Through Investment and High-Value Jobs

Emphasis will be placed on investments that are genuinely realised, create local supply chains, raise productivity and generate quality jobs. Outcome-based investment incentives will continue to be strengthened alongside post-approval facilitation, local supplier development, technology transfer and R&D commercialisation.

Strategic sectors will remain a focus, including semiconductors, AI, digital services, the energy transition, pharmaceuticals, logistics and aerospace, in line with the MADANI Government's policies: NIMP 2030, NETR, NSS, the National AI Action Plan 2026-2030, AI untuk Rakyat, the KL20 Action Plan, PuTERA35 and GEAR-uP. The Government will strengthen investment monitoring throughout the investment lifecycle, while addressing implementation bottlenecks, including approvals for land and utilities and the availability of talent.

Investment multiplier effects will be cultivated through MSME digitalisation and access to financing, including the RM10 billion post-crisis BNM-CGC guarantee scheme; Visit Malaysia Year 2026 for the tourism sector; a stronger halal economy and Islamic finance; and regional hubs such as the Johor-Singapore Special Economic Zone (JSSEZ), Kulim Hi-Tech Park, Penang Silicon Island, and the Sabah and Sarawak economic corridors.

Development will continue to be guided by Environmental, Social and Governance (ESG) principles and the Sustainable Development Goals (SDGs), so that it is not merely rapid but sustainable and responsible to future generations. Following Malaysia's 15th-place position in the IMD World Competitiveness Ranking 2026, the STAR Team will continue work towards a top-12 benchmark under the MADANI Economy framework.

Public feedback is sought on the following:

• Which incentives should be prioritised to attract investments that create high-income jobs and benefit local companies?
  
  
• How can local companies, particularly MSMEs, benefit more from foreign investment coming into Malaysia?; and
  
  
• Which areas should be prioritised to further improve Malaysia's competitiveness as an investment destination?

Tenth: Building Energy, Food, Climate and Cyber Security

The 2026 energy crisis underscores the need to build Malaysia's capacity to withstand geopolitical, climate, technological and commodity shocks. Budget 2027 will thus strengthen the transition to clean energy, raise agri-food productivity and agricultural technology, and accelerate flood mitigation, disaster preparedness and climate-adaptation plans.

Cybersecurity, the prevention of online fraud, data resilience and the protection of critical infrastructure will also be elevated as components of national security, as digital threats now directly affect the people, businesses and the financial system’s stability.

In energy, the NETR will be accelerated through renewable-energy capacity and battery storage, upgrades to the national grid and ASEAN interconnection, energy efficiency under the Energy Efficiency and Conservation Act (EECA) 2024, and the development of carbon capture, utilisation and storage (CCUS) and hydrogen under the CCUS Act 2025. These are steps towards national energy sovereignty. Data-centre incentives will be tied to energy and water efficiency so that digital growth does not strain supplies or raise costs for the people. The lessons of the 2026 crisis will be translated into enduring preparedness policies.

Public feedback is sought on the following:

• What measures will strengthen national energy security and reduce the risk of supply disruption in the future?
  
  
• What measures will strengthen national food security and stabilise food supplies and prices?
  
  
• What measures will improve national preparedness for floods, extreme weather and climate change?
  
  
• How can people and businesses be protected from cyber threats?

4. CONCLUSION

These 10 focus areas are presented for further refinement together with the people. The Government welcomes views on priorities, programme design and implementation considerations for each area, and will examine and translate the input received into concrete measures in Budget 2027.

The year 2026 tested the country's resilience. The energy crisis proved that the reforms implemented since the first MADANI Budget have become a bulwark for the economy and the people. For the fifth consecutive year, the MADANI Budget will continue correcting the structures that have long prevented Malaysia from reaching its full potential, while ensuring that the people remain protected.

Despite the many domestic and external challenges, including the global energy crisis and cost-of-living pressures, the Government is optimistic that Budget 2027 will bring Malaysia one step closer to fully realising the Ekonomi MADANI vision. This success must draw upon the full strength and energy of Malaysia: the people, Government, industry and civil society working hand in hand, embracing the blessings of unity in diversity that lie at the heart of our national identity and the foundation of sustainable, inclusive development.

The Government will table Budget 2027 in Parliament on 9 October 2026. The Ministry of Finance will coordinate comprehensive engagement with stakeholders and the public to obtain budget input in line with the priorities of Ekonomi MADANI. The Government is committed to translating the input received into Budget 2027, particularly input that supports energy security, the cost of living, economic empowerment and good governance.

Feedback and proposals on Budget 2027 may be submitted through the Budget Portal at https://belanjawan.mof.gov.my, which will open on 18 August 2026.

Ministry of Finance
18 August 2026

↓ Download: Pre- Budget Statement 2027