Malaysia

Budget 2027: Cost of living to take centre stage as government weighs global risks

The government weighs global geopolitical tensions, oil prices, investment and economic growth in shaping its priorities

Updated 4 days ago · Published on 23 Aug 2026 11:57AM

Budget 2027: Cost of living to take centre stage as government weighs global risks
Malaysians facing persistent household cost pressures could see greater relief measures in Budget 2027 - August 23, 2026

EASING the financial strain on Malaysian households is expected to be a key focus of Budget 2027, as the government prepares measures to address cost-of-living pressures amid an unsettled global geopolitical environment.

Madani Government spokesman Datuk Seri Fahmi Fadzil said the government would take into account external developments, particularly movements in global crude oil prices, when formulating the budget.

For Malaysians, changes in global oil prices can have a direct bearing on fuel costs and, in turn, household expenses and the prices of goods and services.

“Overall, I see that on behalf of the government, the focus in Budget 2027 will include ensuring that the people’s cost-of-living issues are addressed more comprehensively, taking into account the geopolitical situation, which remains unresolved at this time.

“So, factors such as crude oil prices, which are usually one of the benchmarks, will be among the considerations,” he said.

Fahmi, who is also Communications Minister, told reporters this after launching the 2026 Kembara Merdeka Jalur Gemilang (KMJG) X JAGO programme for the Federal Territories of Kuala Lumpur and Putrajaya at Taman Seri Sentosa Market here today.

Also present was Federal Territories of Kuala Lumpur and Putrajaya Information Department director Normaizatulakmal Tujad.

Fahmi said Budget 2027 would also prioritise projects capable of resolving problems faced by the people within the shortest possible time.

This suggests that measures offering more immediate benefits to households and communities could feature alongside longer-term economic initiatives.

At the same time, the government would continue efforts to attract more domestic and international investment while supporting implementation of the 13th Malaysia Plan.

For the Communications Ministry, Fahmi said expanding internet access, particularly in remote areas, would remain a priority, potentially improving connectivity and access to digital services for communities that remain underserved.

He said the ministry was also examining media sustainability issues and exploring incentives to attract more international events and film productions to Malaysia.

“Perhaps incentives such as CIME (Concerts and Events in Malaysia Incentive) and FIMI (Filming in Malaysia Incentive)... both are capable of attracting more investors to Malaysia.

“So, these are currently being discussed at the Communications Ministry level and among the messages we have received from the Finance Ministry,” he said. - August 23, 2026

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