Malaysia proposed higher public spending for 2027 while setting a lower budget-deficit target. The 459.8 billion ringgit plan exceeds this year’s revised spending estimate of 444.1 billion ringgit. Prime Minister Anwar Ibrahim’s government also expects stronger revenue, with a larger dividend from Petronas, as it aims to narrow the deficit next year.
Malaysia’s Prime Minister Anwar Ibrahim presented the government’s budget for 2027 in parliament on 9 October. The spending plan sets out allocations for the coming year.[1], [2]
The proposed budget totals 459.8 billion ringgit. This year’s spending estimate has been revised to 444.1 billion ringgit. The government’s next-year plan therefore carries a larger expenditure allocation than the revised estimate for the current year.[1]
Government revenue is projected at 380.8 billion ringgit for 2027, compared with this year’s revised estimate of 363.6 billion ringgit. The plan includes a larger contribution from oil company Petronas. Its dividend to the government is expected to reach 32 billion ringgit next year. This year’s contribution has been revised from the original 20 billion ringgit to 27 billion ringgit.[1]
The fiscal deficit estimate for this year was revised upward to 3.6 per cent of economic output. For next year, the government aims for a deficit of 3.3 per cent. These are fiscal estimates and targets for the respective years, alongside the spending and revenue amounts in the budget proposal.[1]
