Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim has hinted that Budget 2027 will be crafted with greater emphasis on cost-saving measures amid mounting global economic pressures affecting the country's fiscal position. Anwar, who is also Finance Minister, said global geopolitical uncertainties, including tensions stemming from attacks by the United States and its ally Israel on Iran, have affected the global economy and necessitated more prudent government spending.

According to BERNAMA News Agency, Anwar emphasized that the impact of these geopolitical tensions has also affected Malaysia's economy, advising against taking lightly or dismissing the new decisions he makes. Despite appeals from various ministries, including the Ministry of Education and the Ministry of Higher Education, for reconsideration of budget cuts, Anwar insisted on the necessity of reductions, stating that it is impossible not to find savings from the RM20 billion budget.

During the officiation of the Kuala Lumpur International Book Fair (PBAKL) 2026, Anwar assured that the government would continue to prioritise the quality of education and the provision of basic facilities in schools and universities, even with reduced allocations. He urged ministries to avoid working in silos and to understand the broader economic challenges from a macroeconomic perspective.

Anwar highlighted the importance of every sector and ministry, noting that priorities must be set wisely by allocating resources according to actual needs. He called for a sensible and wise approach to understanding and addressing the current economic challenges, emphasizing the opportunity to rectify weaknesses, reduce costs where necessary, and determine the right priorities.