Budget 2027 will focus on 10 areas rooted in the MADANI Economy and 13MP, including cost of living, social protection, jobs, healthcare and economic growth.
KUALA LUMPUR: Budget 2027 is framed around 10 focus areas rooted in the three pillars of the MADANI Economy and the priorities of the 13th Malaysia Plan (13MP), the Ministry of Finance (MOF) said.
In its Pre-Budget Statement 2027, MOF said people are the priority across all 10 focus areas, with every policy, initiative and allocation aimed at delivering tangible benefits by easing cost-of-living pressures, raising incomes, creating quality jobs and 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,” MOF said.
The ministry said social justice and development for all will be the main priority, with inclusive development requiring 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,” it said.
The MADANI government also aims to protect the people against cost-of-living pressures, with ongoing improvements to the targeting of subsidies and social assistance 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 said.
MOF highlighted that the purchasing power of vulnerable groups will continue to be protected through Sumbangan Tunai Rahmah, Sumbangan Asas Rahmah and BUDI MADANI; the prices of essential goods will be stabilised through enforcement, Jualan Rahmah MADANI and strategic supply management.
In the face of demographic change, Budget 2027 will reassess the adequacy and sustainability of Malaysia’s social protection system, including coverage under the Employees Provident Fund, 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,” it said.
Meanwhile, MOF said 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, Technical and Vocational Education and Training (TVET), Science, Technology, Engineering and Mathematics (STEM), digital and Artificial Intelligence (AI) capabilities, language proficiency and character development,” it said.
Efforts will focus on expanding access to affordable, quality healthcare; reducing congestion at public facilities; strengthening the health workforce; and improving disease prevention.
In addition, the MADANI government will continue 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,” it said.
MOF said the government also aims to promote good governance and improve the delivery of public services, including 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.
Furthermore, the ministry said the government also prioritised workers’ welfare and decent wages, with Budget 2027 expanding industry-led TVET, apprenticeships and reskilling programmes aligned with strategic sectors, alongside AI literacy, digital capability and lifelong learning for workers and SMEs.
MOF said 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.
Besides, MOF said the government also emphasised growth through investment and high-value jobs, with strategic sectors remaining a focus, including semiconductors, AI, digital services, the energy transition, pharmaceuticals, logistics and aerospace, in line with the MADANI government’s policies.
Finally, under Budget 2027, the government will strengthen the transition to clean energy, raise agri-food productivity and agricultural technology, and accelerate flood mitigation, disaster preparedness and climate adaptation plans.
MOF said 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 MADANI Economy vision.
The government will table Budget 2027 in Parliament on Oct 9, 2026.
