PUTRAJAYA: The government will continue to welcome the views of various segments of the Malaysian economy and society in crafting the federal budget while balancing their needs in relation to economic growth and sustainability, says the Finance Ministry’s (MoF) Treasury secretary general Tan Sri Johan Mahmood Merican.
He spoke to StarBiz at a briefing on the StarProperty Budget 2027 Roundtable in which a memorandum containing actionable proposals was presented to the ministry.
Johan said the government has started broad-based engagements with various groups for the preparation of Budget 2027, scheduled to be tabled in Parliament on Oct 9.
He added that good economic management has contributed towards a strong economy in the second quarter of 2026 underpinned by 6% gross domestic product growth, stable inflation despite the surge in energy prices and low unemployment, as well as record trade and investment levels.
Johan noted that for the economy to sustain, measures have been taken over the last three years, including to lower the fiscal deficit but acknowledged that ordinary Malaysians continue to face challenges, such as house prices moving faster than incomes.
“We’re listening to various groups and trying to understand the pain points, whether it’s ordinary citizens, or businesses, as we develop the measures for Budget 2027. This considers the very dynamic global environment that we’re currently in, such as the Middle East crisis, and understanding the effects it has. These engagements are important,” Johan added.
He said a good number of the measures in every single budget over the years have been guided by the inputs that the government has received.
“And I’m very confident that even within this memorandum that you submit, I’m sure we’ll be able to see at least a measure or two which would be relevant for Budget 2027,” Johan said.
The roundtable, the fourth in as many years, brought together representatives from developers across Malaysia, and included the Sabah Housing and Real Estate Developers Association and the Sarawak Housing and Real Estate Developers’ Association, to recommend solutions for the property industry.
The memorandum outlined proposals to the government on six focus areas: housing affordability and market stability; urban liveability and quality of life; home financing and accessibility; demand-led urban planning and housing development; regulatory efficiency and project approvals; and infrastructure and approval efficiency in Sabah and Sarawak.
Star Media Group Bhd
chief operating officer Lydia Wang, who presented the memorandum to Johan, said the property industry’s dynamics continue to be shaped not only by prices, but also by the underlying cost of development, access to financing, infrastructure readiness and the effectiveness of incentives that influence investment and housing delivery.
She expressed the hope that the government would find the feedback gathered through the roundtable useful and that it could find strategic opportunities for Budget 2027 addressing pressures the industry feels through targeted fiscal measures, financing support and stronger coordination across the housing ecosystem.
“These recommendations are intended to support the MoF in leveraging its policy levers to contain development costs, improve home ownership access and build a property market that actively responds to Malaysia’s evolving demographic and economic needs,” she said.
Don’t miss the complete coverage in the upcoming StarProperty Pullout on Oct 2, 2026.
