Accra:The Budget 2027 is set to reinforce Malaysia's ambition of building a more productive and resilient economy, with a focus on delivering meaningful benefits to businesses and households, as stated by Hong Leong Bank (HLB).
According to BERNAMA News Agency, the bank highlighted the government's emphasis on strengthening local enterprises, accelerating AI adoption, advancing energy transition, and supporting Halal enterprise development. These efforts are accompanied by measures to ease living costs and maintain fiscal discipline.
The government's projected real GDP growth of 4.2 to 5.2 percent for 2027 aligns with the 13th Malaysia Plan's target of 4.5 to 5.5 percent and is consistent with HLB's forecast of 5.0 percent. HLB expects growth to be driven by resilient domestic demand, continued policy support, and investment in high-value digital services and AI. Tourism activities related to Visit Malaysia Year 2026-2027, the SEA Games 2027, and LIMA 2027 are also anticipated to provide further momentum.
Maintaining fiscal discipline alongside these growth ambitions will be crucial for sustaining confidence and preserving Malaysia's capacity to respond to future challenges. The projected narrowing of the fiscal deficit in 2027 to 3.3 percent of GDP, or RM77.5 billion, along with a six percent increase in the revised revenue estimate for 2026, offers a stronger fiscal foundation amid global uncertainty.
Budget 2027 prioritizes the rakyat by offering targeted assistance, measures to support wage growth, and personal tax relief. Expanded support through STR, SARA, and BUDI MADANI fuel subsidies provides significant cost-of-living relief, while an increase in the minimum wage to RM2,000 strengthens the earnings base for lower-income workers. Middle-income tax reductions, higher tax relief limits, and stamp duty exemptions are expected to create more room for households to manage expenses, build savings, and pursue homeownership.
The Education Ministry's nearly RM69 billion allocation underscores the government's commitment to investing in the nation's future. HLB supports this priority by actively contributing to schools and enhancing learning environments through corporate partnerships.
For businesses, the Budget's financing guarantees, tax measures, and support for AI and automation can help SMEs improve productivity and reach new markets. Realizing these benefits requires financing, practical guidance, and skills development. HLB is committed to supporting businesses in making investments that address their needs and strengthen long-term competitiveness.
Support for Halal certification can open new opportunities for local enterprises, complemented by stronger capabilities and market access. HLB Islamic's BizHalal approach supports this growth journey, while social finance initiatives like iTEKAD combine funding with capability building to help underserved entrepreneurs build sustainable livelihoods.