BUDGET 2027 will focus on strengthening Malaysia’s economic resilience and safeguarding growth as the Government braces for potential fallout from geopolitical tensions and global economic shocks.
Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah said the Government was maintaining its official economic growth forecast of between four and five per cent despite second-quarter gross domestic product (GDP) expanding by six per cent.
“Alhamdulillah, the second quarter recorded six per cent, but we are not taking that as something to be complacent about. We continue to monitor developments by meeting various parties, not only industry players and associations but also individuals.
“It is not just one sector but various sectors, so that we can understand what is actually happening and what their views are because we formulate policies, but they are the stakeholders.
“They understand these matters better. That is why we have stepped up communication through meetings of the National Economic Action Council (MTEN), where industry representatives are invited to give their views to policymakers at the highest level,” he told a press conference on Firday.
Mohd Shahar said the focus should also be on the 13th Malaysia Plan (RMK-13), which sets out the country’s five-year development priorities under the Economy Ministry.
“The Budget is short term, but what we want to look at is the Malaysia Plan under the Economy Ministry for five years. Whatever happens in the short term, we will manage it through the Budget.
“Certainly, the Budget is eagerly awaited by the people because they want to see how the Government will introduce various initiatives, including measures to contain the impact of the global crisis. What is important is that we want to be resilient,” he said.
Mohd Shahar was speaking after attending the Kelantan chapter of the Malaysian Malay Contractors Association’s (PKMM) 49th annual general meeting dinner here last night.
Meanwhile, he said the Government was monitoring developments in West Asia, including the situation in the Strait of Hormuz, around the clock through the Pantau Krisis dashboard to ensure Malaysia remained prepared for any developments that could affect supplies and the economy.
The dashboard, developed in collaboration with the Department of Statistics Malaysia (DOSM), enables the Government to obtain detailed information on developments surrounding the ongoing crisis and serves as a channel for communicating updates to the public.
“We cannot say whether the situation in West Asia is improving or worsening because it is difficult to predict. What we are doing is continuously monitoring it 24 hours a day through our agencies.
“If there are urgent matters, we immediately convene meetings,” he said.
Mohd Shahar said the Government’s monitoring extended beyond whether Malaysia had sufficient oil supplies to last until the end of the year.
It also covered inflationary pressures on goods and developments in the labour market, including workers losing their jobs and securing new employment.
“Government monitoring is not only about whether the country’s oil supply can last until the end of the year, but from various aspects, including inflation in goods, so that pressure is not felt by society as a whole.
“We are also looking at how workers are being laid off and those obtaining new jobs. We are monitoring all of this,” he said. - August 29, 2026
