Kuala Lumpur:The government will emphasize prudent fiscal management in Budget 2027 to benefit citizens and alleviate cost-of-living pressures, particularly for low-income households, according to Prime Minister Datuk Seri Anwar Ibrahim.
According to BERNAMA News Agency, Anwar stated that savings from improved governance and efforts to prevent financial leakages will be redirected to the public, in line with strengthening the country's financial position while providing necessary assistance.
Despite Malaysia's low inflation rate of around two percent, Anwar noted that the public continues to feel pressure from rising prices of goods and services. He explained that past financial challenges required addressing debt and setting priorities before implementing new measures.
The government aims to balance debt reduction and spending control with increased allocations for critical sectors like defense, housing for service members and police, and school facilities. This approach ensures that government spending delivers significant economic and social returns.
Anwar highlighted improved fiscal space through disciplined financial management, emphasizing the importance of protecting these savings from waste. A stronger fiscal position allows the government to provide targeted assistance, such as support for schoolchildren, rubber smallholders, and paddy farmers.
Investments in high-value sectors such as information technology and artificial intelligence are also part of the government's economic strategy. These investments must be accompanied by efforts to boost income and productivity, ensuring that economic growth translates into quality jobs and reduced income inequality.
The budget also considers social and cultural development, including Islamic education and aid for non-Muslim communities. Anwar acknowledged the limitations of Budget 2027 in solving all economic issues but stressed its focus on easing financial burdens for the most affected groups.
The prime minister pointed out external influences, such as global market fluctuations, that impact domestic prices, acknowledging limited government control over all price factors. However, measures like streamlining supply chains and expanding farmers' markets can help reduce price pressures.
Anwar cited maintaining subsidized RON95 petrol prices as an example of balancing fiscal pressures while protecting household income. Despite rising global oil prices, the government kept the price stable to maintain transportation costs and purchasing power.
The Fifth MADANI Budget, themed 'Reaching for the Skies, While Anchored on Our Values,' was tabled by Anwar with total allocations of RM510 billion, aiming to translate economic growth into tangible benefits for citizens through higher wages and more efficient support.