KUALA LUMPUR: Budget 2027 offers opportunities to enhance Malaysia’s productivity and competitiveness through higher-value industries, technological innovation and deeper regional integration, said Affin Bank Bhd
.
Its group president and group chief executive officer, Datuk Wan Razly Abdullah, said the budget came at a pivotal time as Malaysia navigates shifting geopolitical dynamics, evolving global trade patterns and ongoing cost pressures.
"With the economy projected to grow between 4.2 and 5.2 per cent in 2027, the transition towards higher-value industries and technological innovation could support economic growth,” he added.
Wan Razly also welcomed the proposed introduction of tokenised retail savings sukuk, saying it would broaden access to investment opportunities and reinforce Malaysia’s leadership in Islamic finance.
He noted that the initiative could create opportunities for AFFIN Islamic to support growing demand for sukuk and Shariah-compliant financing, particularly in high-growth sectors such as energy, utilities and data centres.
Meanwhile, OCBC senior ASEAN economist Lavanya Venkateswaran said Malaysia’s fiscal consolidation efforts in 2027 will depend on its ability to manage rising expenditure pressures and navigate external uncertainties.
She said economic risks were mounting, ranging from external volatility to intensifying domestic political pressures, raising questions about whether the government could achieve its fiscal consolidation target.
"The revenue measures appeared to shift the revenue base towards commodities rather than broaden it, with part of the revenue loss from income tax adjustments likely to be offset by higher Petroliam Nasional Bhd (Petronas) contributions of RM27 billion in 2026 and RM32 billion in 2027.
OCBC said expenditure pressures remain elevated due to a persistently large subsidy bill, particularly if oil prices remain high, alongside other operating needs.
"This limits the scope for a credible narrowing of the fiscal deficit in 2027,” she said, adding that OCBC’s baseline projection was for fiscal slippage of 0.2 per cent to 0.3 per cent of gross domestic product (GDP) in 2027.
-- BERNAMA
TAGS: AFFIN, OCBC, banking, tokenised sukuk, Budget 2027, economy
