Kuala lumpur: The Malaysian Islamic Chamber of Commerce (DPIM) has expressed hope that Budget 2027, to be tabled next month, will place greater emphasis on development spending than operating expenditure to spur economic growth and strengthen the country's resilience in an uncertain economic environment.

According to BERNAMA News Agency, DPIM's president, Datuk Mohammad Sahar Mat Din, emphasized the importance of a larger allocation for development to ensure that government spending significantly impacts economic activity and creates opportunities for the business community. He highlighted that more than 50 percent of the Budget is spent on operating costs annually, and suggested that this year's Budget should increase development spending, especially for projects capable of stimulating economic growth.

Under Budget 2026, the government allocated RM419.2 billion, with RM338.2 billion, or about 81 percent, dedicated to operating expenditure, while RM81 billion, or about 19 percent, was allocated for development spending. Mohammad Sahar advocated for more business-friendly tax policies, coupled with increased government efficiency and streamlined administration, to alleviate the business community's operating overhead.

He pointed out that lengthy delays in obtaining government approvals, particularly for land development projects, have escalated companies' operating costs. He proposed that the government could enhance digitalisation in processes involving approvals across various areas, including development approvals.

Mohammad Sahar also identified challenges faced by entrepreneurs, such as finding markets for their products and services and securing projects that stimulate business activity. He stressed that the government should focus on spending that stimulates economic activity to ensure its growth-promotion efforts benefit the business community more broadly.

He reiterated the need to drive economic growth amid current uncertainty, emphasizing that strengthening and stimulating the economy must remain a key focus. Additionally, he urged for faster government payments to contractors, noting that delays could affect companies' cash flow. He expressed hope that Budget 2027 would create a more efficient and conducive business environment for approximately 3,000 DPIM member companies across various sectors.