Malaysia

Budget 2026 to prioritise inclusive growth, innovation and high-impact sectors

Amir outlines Budget alignment with the 13th Malaysia Plan and a strong focus on semiconductors, energy transition and the Islamic economy

Updated 1 year ago · Published on 07 Aug 2025 11:06AM

Budget 2026 to prioritise inclusive growth, innovation and high-impact sectors
Minister emphasises that the upcoming budget would outline policies to “raise both the ceiling and the floor”, a reference to the government’s commitment to inclusive growth - August 7, 2025

BUDGET 2026 will be closely aligned with the objectives of the 13th Malaysia Plan (13MP), focusing on high-growth sectors and inclusive reforms, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

Speaking at the 2026 Budget Consultation Council on Thursday (7 August), the minister highlighted key sectors poised for strategic government support, including the semiconductor industry, energy transition initiatives and the Islamic economy.

“These include the semiconductor industry, energy transition initiatives, and the Islamic economy, all of which will continue to receive strong government backing,” he said.

The 2026 Supply Bill is expected to be tabled in Parliament this October.

Amir Hamzah emphasised that the upcoming budget would outline policies to “raise both the ceiling and the floor”, a reference to the government’s commitment to inclusive growth while maintaining fiscal discipline and good governance.

He added that empowering micro, small, and medium enterprises (MSMEs) and start-ups remains central to the government’s economic agenda.

“We will continue to support enterprises that produce products and services proudly labelled ‘Made by Malaysia’,” he said.

More than 300 participants, including representatives from the private sector, industry associations, civil society, economists and senior government officials, attended the consultation session.

The minister also affirmed that digital transformation and Artificial Intelligence (AI) will remain key budget pillars. “The digital and Artificial Intelligence (AI) agenda will remain a key focus, in line with efforts to foster innovation and drive value-based economic growth,” he noted.

He stressed that the government would continue to “raise the floor” by improving public service delivery, particularly in education and healthcare — two sectors central to the 13MP’s reform ambitions.

Acknowledging the complexity of structural economic challenges, Amir Hamzah remarked: “At times, policies introduced may be unpopular, but they are necessary as they bring long-term benefits to the people.”

He gave assurances that fiscal reforms would be approached carefully, stating: “Importantly, any fiscal reforms undertaken will never come at the expense of the rakyat’s well-being.” - August 7, 2025

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