Budget 2026 to boost public sector reforms and governance in Malaysia

LocalPolitics
8 Aug 2025 • 7:41 PM MYT
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KUALA LUMPUR: Budget 2026 will prioritise public sector reforms to strengthen governance and improve service delivery, according to the Ministry of Finance.

The reforms include modernising public services and introducing new frameworks to enhance performance and ethical governance.

“These reforms aim to optimise public resources, minimise leakages, and ensure aid reaches those in need effectively,” the ministry stated.

Budget 2026 builds on existing reforms under the Public Finance and Fiscal Responsibility Act and the National Anti-Corruption Strategy 2024-2028.

Key bills like the Government Procurement Act and Ombudsman Act will enhance transparency and restore public trust in institutions.

The Malaysian Anti-Corruption Commission will intensify enforcement, including cybercrime and digital asset recovery efforts.

Digitalisation efforts will use AI and big data to improve tax compliance and revenue collection.

GovTech initiatives like MyVisa 2.0 and MyJPJ will streamline public services and reduce bureaucracy.

“The government remains committed to expanding digital services despite infrastructure challenges,” the statement added.

Budget 2026 will also introduce performance-based evaluations under the Government Service Efficiency Commitment Act 2025.

The reforms aim to create an agile, digitally skilled public sector aligned with the MADANI Economy.

“Regulatory coordination and digitalisation will improve business processes and service delivery,” the ministry said. - Bernama