Kuala Lumpur: Budget 2027, the fifth MADANI Budget, has been described as a “National Covenant” reflecting the government's responsibility to ensure that the country's economic strength translates into social justice, fairer opportunities and greater dignity for the people.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the fifth Madani Budget themed “Reaching for the Skies, While Anchored On Our Values” in the Dewan Rakyat today, said the national budget should not be based on power alone, but grounded in justice and guided by trust and responsibility.
“Hence, it must be emphasised that the national budget is a moral statement, or National Covenant, of a responsible government.
“Believing that economic strength must uphold human dignity, growth must deliver justice, reforms must restore confidence and every generation must leave behind a better country than the one it inherited, I present Budget Madani 2027 as a generational effort to strengthen the nation's foundations and fulfil our promises and National Covenant to the future,” he said.
He said these principles were reflected in the eight main pillars of Budget 2027: addressing the cost of living; prioritising all states; championing the people's welfare; improving public service quality; safeguarding national supplies and preparedness; raising the ceiling of economic potential; preserving the nation's identity; and managing public funds with integrity.
Anwar said the National Covenant meant that the country would not abandon those struggling with hardship, and that every Malaysian child had the right to fulfil their potential regardless of family background, region or status.
He said the principle also encompassed the Malaysia Agreement 1963 (MA63), which must be regarded as part of the National Covenant and a national responsibility to be fulfilled comprehensively.
“The MADANI Government has increased the special grant rate threefold, with the latest interim rate amounting to RM1.5 billion. This payment will be disbursed before the end of the year, while joint negotiations will continue to finalise a fair and sustainable annual formula,” he said.
On development in Sabah and Sarawak, Anwar said Federal allocations for both states in 2027 would remain at their highest levels, with Sabah receiving RM18.7 billion and Sarawak RM16.2 billion.
He said 12 matters relating to MA63 had been finalised under the Madani Government, including the appointment of permanent representatives from Sabah and Sarawak to the Inland Revenue Board (LHDN), the handover of Bintulu Port to Sarawak and the transfer of MASwings to the state for rebranding as AirBorneo.
In addition, regulatory authority over electricity has been transferred to Sabah, while the Federal Government continues to provide RM600 million to ensure a sustainable electricity supply in the state.
Anwar said the true measure of a budget lay not merely in the size of its allocations or the number of announcements, but in the extent to which its outcomes enabled people to live with dignity and bequeathed a fairer Malaysia to future generations.
“The country provides space and opportunities, while the people fill them with knowledge, work, creativity and courage. The government safeguards the trust placed in it, while the people strengthen the nation through effort and excellence. This, therefore, is a historical responsibility,” he said.
He said the National Covenant also placed a responsibility on every generation to hand over a better Malaysia to the next, describing this as an intergenerational responsibility.
“It is an opportunity for our generation to leave behind a stronger country than the one we inherited, with institutions that inspire greater confidence and trust, a more diversified economy and a younger generation with wider opportunities to shape their own future,” he said.
“We are not building a nation for one fiscal year. We are building a nation for a generation. And the duty of a generation is not merely to enjoy what it has inherited, but to expand what it can pass on,” he said.
Anwar said this responsibility gave meaning to the National Covenant: a promise that the country would continue to care for its people, that power would always be guided by trust and accountability, and that national wealth would be channelled towards the common good.
“This covenant also reminds us that development is not the work of the government alone. It is a collective endeavour. The government bears the responsibility, the people contribute their efforts, the nation creates opportunities, and society fills them with knowledge, creativity and courage,” he said.
Linking the concept to the Malay intellectual tradition, which places justice and trust at the heart of governance, the Prime Minister quoted Malay poet and historian Raja Ali Haji from Gurindam Dua Belas: “Hukum adil atas rakyat, tanda raja beroleh inayat” (Just laws upon the people, mark a ruler blessed with grace).
He said the verse reinforced the principle that governing authority must always be accompanied by trust and accountability.
