Malaysia

Minister affirms fiscal prudence amid strategic spending and social programmes

Government financial allocations have been fully utilised in 2025 without affecting the fiscal deficit, which ended at 3.7 per cent, slightly below the projected 3.8 per cent

Updated 4 months ago · Published on 26 Feb 2026 4:41PM

Minister affirms fiscal prudence amid strategic spending and social programmes
The expansion of targeted social aid, with allocations for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, reaches a historic RM15 billion and helps nine million recipients - February 26, 2026

THE Ministry of Finance has reaffirmed its commitment to disciplined fiscal management following the presentation of the Supplemental Supply Bill 2025–2026 and the First Additional Development Expenditure Estimates for 2025, amounting to RM9.39 billion.

Finance Minister II Datuk Seri Amir Hamzah Azizan outlined the allocations during the closing of the parliamentary debate, highlighting the government’s focus on economic stability, targeted social support, and strategic national projects

Addressing the Dewan Rakyat, Amir explained that RM8.4 billion had been allocated for operating expenditure, of which RM7.9 billion required parliamentary approval, while RM472 million was classified as statutory charges and would not be debated.

Development expenditure stood at RM990.9 million.

The minister noted that these allocations had already been fully utilised in 2025 without affecting the fiscal deficit, which ended at 3.7 per cent, slightly below the projected 3.8 per cent.

The minister emphasised Malaysia’s economic resilience despite global uncertainties, with domestic demand driving GDP growth to 5.2 per cent in 2025, surpassing official forecasts.

Unemployment remained low at 2.9 per cent, and inflation stood at 1.4 per cent, reflecting tangible benefits to citizens.

He highlighted the expansion of targeted social aid, with allocations for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah reaching a historic RM15 billion and extending support to nine million recipients.

Datuk Seri Amir Hamzah also outlined key strategic interventions, including additional funding for public universities, maintenance of air force aircraft and radar systems, and support for major infrastructure projects such as Sabah’s energy sector and the East Klang Valley Expressway.

He emphasised that all allocations were carefully managed to sustain strategic sectors, protect jobs, and ensure the efficient delivery of public services.

On government support for the private sector, he noted: “The Government’s involvement in the VTEB recovery plan is not a financial bailout, but a strategic measure to protect Malaysia’s domestic oil and gas ecosystem, safeguarding nearly 59,000 jobs and ensuring payments to over 1,400 local vendors.”

Amir expressed his gratitude to Members of Parliament for their insights and confirmed that suggestions would be carefully examined and incorporated where appropriate in the preparation of the 2027 Budget, in line with national fiscal priorities. - February 26, 2026

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