Kuala lumpur: The Economy Ministry has projected 2027's development expenditure to be approximately RM58 billion, with 70 percent of this allocation earmarked for basic development. This proposal is pending submission to the Finance Ministry (MOF).
According to BERNAMA News Agency, Economy Minister Akmal Nasrullah Mohd Nasir stated that the projection is derived from the ministry's preliminary findings. He mentioned that the ministry's senior leadership is set to finalize the 2027 development plan before presenting it to the MOF. Speaking at a press conference regarding the Statistics Bill 2026 and during the Economy Ministry's monthly assembly, Nasrullah emphasized that this allocation aims to ensure the continuity of development projects, maintain economic growth momentum, and accelerate the nation's physical development.
The government continues to apply its internal strategy of allocating 70 percent of total development expenditure towards basic development. This is intended to preserve public service delivery and ongoing development work. MOF's website indicates that for 2026, basic development expenditure projects were allocated RM57.6 billion, representing 71 percent of total development expenditure, compared to RM55.67 billion, or 65 percent, in 2025.
Akmal Nasrullah noted that MOF will be conducting the comprehensive assessment for Budget 2027. He also addressed the potential use of a global oil price benchmark in the budget, stating that this falls under the MOF's jurisdiction. He explained that while oil prices are a crucial factor, the assessment balancing fiscal needs, including next year's oil price projections, will be handled by the MOF.
Further, Nasrullah mentioned that despite an estimated economic growth of 5.8 percent in the second quarter of 2026, leading to a first-half growth of 5.6 percent, vigilance is essential due to an ongoing global crisis. He highlighted that although the growth surpassed Bank Negara Malaysia's 2026 forecast of 4 to 5 percent, sustaining similar performance in the latter half of the year may prove challenging, especially with potential impacts from factors like El Ni±o.
Budget 2027 is slated for presentation in the Dewan Rakyat on October 9, 2026, by Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister.