Malaysia

Budget 2026 stands as blueprint for sustainable, technology-driven progress

RM470 billion spending plan lauded for balancing fiscal prudence with innovation, resilience and inclusive growth under 13th Malaysia Plan

Updated 1 year ago · Published on 11 Oct 2025 11:24AM

Budget 2026 stands as blueprint for sustainable, technology-driven progress
Budget framework will deepen industrial linkages and strengthen collaboration between local enterprises and multinational corporations - October11, 2025

BURSA Malaysia has praised Budget 2026 as a pivotal framework to drive Malaysia’s transition towards a resilient, sustainable, and innovation-led economy, citing the government’s emphasis on long-term structural reforms, technology investment, and inclusive development.

In a joint response following the tabling of the RM470 billion federal budget — the largest in the nation’s history — both institutions welcomed the government’s “proactive yet responsible stance” in strengthening the economic foundation while fostering fiscal discipline.

“Budget 2026 nurtures sustainable and responsible growth, empowers citizens to embrace wealth creation, and encourages diversity — all key factors to move forward as a progressive society,” Bursa Malaysia said in a statement.

The Exchange highlighted the RM550 million investment by Khazanah Nasional Bhd and Kumpulan Wang Persaraan into Malaysia’s semiconductor ecosystem as a significant milestone in elevating the country’s global role in high-tech manufacturing.

The move is expected to deepen industrial linkages and strengthen collaboration between local enterprises and multinational corporations.

Bursa Malaysia also noted the government’s strong commitment to digital transformation, pointing to the RM53 million Malaysia Digital Accelerator Grant for emerging technology adoption and Cradle Fund’s RM55 million innovation programme, now extended to private-sector involvement.

It further welcomed RM40 million in funding from government-linked investment companies and Ekuinas’ efforts to grow competitive Bumiputera enterprises, noting that the Exchange remains ready to support such businesses via capital-raising and market access.

On governance, Bursa Malaysia reaffirmed its push to enhance board diversity among public-listed companies, with 45% having already achieved the 30% threshold for women’s representation. It said it would continue to work with the Securities Commission Malaysia and other stakeholders to expand this progress.

“We stand ready as the fundraising platform for all businesses and the preferred marketplace for investors,” it said, adding that the measures outlined in Budget 2026 could be translated into real economic benefits with strong collaboration.

Meanwhile, the RHB Banking Group also welcomed the budget, describing it as a “progressive and inclusive fiscal framework” that underscores the government’s commitment to sustainable development and social equity under the 13th Malaysia Plan.

Datuk Mohd Rashid Mohamad, the Group Managing Director/Group Chief Executive Officer for the RHB Banking Group  commended the budget’s targeted fiscal deficit of 3.5% of GDP and the RM81 billion development expenditure, noting these reflect “prudent financial stewardship and a long-term vision for nation-building.”

He also endorsed the government’s decision to rationalise subsidies — with RM15.5 billion in expected annual savings — and redirect them to targeted social support and infrastructure development.

“As a responsible and purpose-driven financial institution, RHB is fully aligned with the national agenda to accelerate Malaysia’s transition toward a high-value, low-carbon economy,” said Mohd Rashid, adding that the budget’s focus on ESG, digitalisation, and MSME empowerment is in line with RHB’s corporate strategy, PROGRESS27.

The bank has committed to mobilising RM90 billion in sustainable financial services by 2027 and achieving net-zero emissions by 2050.

RHB also praised the enhancement of government guarantees under the Skim Jaminan Kredit Perumahan (SJKP) and Syarikat Jaminan Pembiayaan Perniagaan (SJPP), which are expected to improve access to financing for first-time homebuyers and MSMEs.

“We applaud the Government’s vision and look forward to working together to enable progress for all Malaysians and build a more resilient, equitable, and sustainable Malaysia,” he added.Trump calls China’s decision “shocking” and a “hostile order”, accusing Beijing of overreaching and undermining global supply chain - October11, 2025

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