THE Government is advancing preparations for its Fourth Madani Budget with the successful conclusion of the 2026 Budget Engagement Session, a key step toward shaping the country’s next financial framework.
Prime Minister Datuk Seri Anwar Ibrahim described the session as an important platform for formulating a budget that is grounded in present-day realities and focused on ensuring inclusive development—especially for marginalised and vulnerable communities.
"The 2026 Madani Budget will focus on ‘floor and ceiling’ issues across various sectors and segments, in line with the broader framework of the 13th Malaysia Plan tabled last month," Anwar, who is also the Finance Minister said.
He emphasised that any pursuit of economic growth and investment must also address fundamental issues, warning that neglecting the economic "floor"—the needs of lower-income groups—could pose long-term risks.
"I believe that if we talk about growth and investment without considering the floor, it will become a problem because the cost of goods is not decreasing.
"Salaries must increase, even if only slightly. If they rise proportionately or more, it will not create the kind of pressure that some of our people currently feel due to the rising cost of living," he said during his closing address at the Ministry of Finance.
The upcoming budget, set to be tabled this October, will be the first aligned with the recently launched 13th Malaysia Plan (13MP).
Second Finance Minister Datuk Seri Amir Hamzah Azizan was also in attendance at the session, which brought together around 300 stakeholders from the public service, private sector, chambers of commerce, academia, NGOs, international organisations, and policy experts.
Reaffirming his government’s people-centric vision, Anwar said: "As I’ve often emphasised, no matter how high we aim for the skies, it means little if we do not stay rooted in the needs of the people and prioritise the public good."
He thanked all participants for offering constructive suggestions aimed at reinforcing Malaysia’s economic foundations and safeguarding citizens' welfare.
"God willing, even as the country’s fiscal position is still in recovery, the Madani Government will continue to study each proposal with a strong sense of responsibility and care," he added.
On a separate note, Anwar shared that Malaysia has been entrusted with a significant diplomatic role in facilitating peace negotiations between Cambodia and Thailand over ongoing border issues.
"Malaysia is not merely acting as a facilitator but is also moving swiftly on the ground through the leadership of the Armed Forces Chief. Talks are now continuing via the General Border Committee (GBC) and Regional Border Committee (RBC), coordinated by Malaysia and jointly monitored by ASEAN defence attachés," he said.
Anwar pledged that Malaysia would fulfil this mandate with diligence and resolve.
"We will continue to shoulder this responsibility with full commitment, for the sake of lasting peace in the region," he said. - August 7, 2025
