PRIME MINISTER Datuk Seri Anwar Ibrahim said Budget 2027 will be shaped by the principles of justice, human dignity and shared prosperity, insisting that Malaysia's economic policies must place people at the centre of development while balancing fiscal reforms against mounting global and domestic challenges.
Speaking at the Humane Economy Global Discourse (HEGD) 2026 at the World Trade Centre Kuala Lumpur on Thursday, Anwar said economic success should not be measured solely by growth, investment or infrastructure, but by its ability to improve the lives of ordinary Malaysians.
He said preparations for Budget 2027, which is expected to be tabled in Parliament in early October, would be guided by the MADANI framework's emphasis on values-based governance.
"No society rises merely because it has highways, buildings, technology or financial resources. It rises when it has a serious understanding of human philosophy, of justice, of knowledge, of responsibility and of the future," he said.
"This will not win votes in Negeri Sembilan, but it will save a generation."
Anwar said Malaysia must remain an attractive destination for investment, but economic policy should never lose sight of its broader moral purpose.
"This is a major challenge. To reclaim humanity is to recover a simple but too often neglected truth — the economy is a means, not an end in itself," he said.
He said economic development should not merely produce higher output, greater consumption or increased wealth, but should enable people to live with dignity, security, purpose and hope.
"It means asking, before every major decision, whether growth widens opportunity or narrows it, whether it strengthens families and communities or leaves them more vulnerable; whether it treats human beings as partners in development or merely as instruments of production.
"Believe me, these questions are real and tough."
Referring to the formulation of Budget 2027, Anwar said the government would soon begin finalising its fiscal priorities ahead of the October tabling.
"Next month or so, I will grapple with formalising the budget for next year, early in October," he said.
The Prime Minister said the budget would be prepared amid a complex global environment characterised by geopolitical tensions, elevated energy prices and continued uncertainty in international markets, all of which have increased pressure on government finances.
Higher global crude oil prices have also intensified concerns over fuel subsidy costs, particularly as the government continues refining its targeted subsidy framework, including the planned rationalisation of RON95 petrol subsidies, while ensuring assistance remains focused on lower- and middle-income households.
Anwar said the government must carefully balance fiscal sustainability with measures to ease cost-of-living pressures, maintain investor confidence and sustain economic growth without compromising social protection.
He added that Malaysia's budget, semiconductor ambitions, energy transition agenda and digital transformation strategy must all reflect the broader objective of restoring the moral purpose of governance.
"It is not a slogan to be placed on banners. It must be reflected in policy, institutions and conduct," he said.
Anwar said prosperity must be inclusive and translate into tangible improvements in people's lives through better wages, meaningful employment, affordable housing, accessible healthcare, quality education, stronger communities and greater social mobility.
He said embedding these values into national policymaking would enable Malaysia to build a more resilient, equitable and sustainable economy while safeguarding the wellbeing of future generations. - July 23, 2026
