KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) estimates that the total federal government allocation for Budget 2027 will be RM437.8bil.
“Development expenditure is projected to rise to RM83bil, from RM81bil in Budget 2026,” stated RHB IB in a research note.
It said Budget 2027 is likely to remain mildly expansionary while maintaining the path of fiscal consolidation, with the fiscal deficit target potentially remaining at around 3.5% of gross domestic product.
“The overall policy mix should therefore provide targeted near-term relief while preserving fiscal space for strategic investment and strengthening Malaysia’s medium-term growth potential,” it said.
The government is expected to announce Budget 2027, with the theme Reaching for the Skies, While Anchored on Our Values, on Oct 9, 2026. The national budget will focus on five key prongs, namely, fiscal sustainability; inclusive growth and infrastructure development; social protection and cost-of-living support; strengthening the business and investment climate; and energy, food security and climate resilience.
Furthermore, it will likely prioritise Malaysia’s economic resilience while laying the foundations for sustainable medium-term growth. “The government is expected to maintain targeted household support while directing resources towards advanced manufacturing, energy transition, aerospace and chemicals, alongside continued fiscal consolidation,” said RHB IB.
