DATUK Seri Amir Hamzah Azizan, in his winding-up speech in the Dewan Rakyat on Monday, said the Economy Ministry has been allocated a total of RM2.75 billion for 2026, reflecting the Government’s continued commitment to national development, particularly in the first year of the 13th Malaysia Plan (RMK13).
As the nation’s economic planning agency, the Ministry is tasked with directing resources to support socio-economic development through comprehensive, human-centred planning and by overseeing strategic cross-agency projects.
The development budget for 2026 amounts to RM83 billion, with Basic Development Expenditure rising from RM55.7 billion in 2025 to RM57.6 billion.
"With this increase, the number of approved new Basic Development projects rises from 1,967 in 2025 to 2,371 projects to enhance citizens’ well-being," the Minister said. The Ministry’s own development allocation of RM2.115 billion represents a 72.7 per cent increase from 2025, reflecting the completion of prior projects.
On economic projections, Amir noted that global growth is expected to moderate to 3.1 per cent in 2026, with global trade projected at 2.3 per cent growth due to geopolitical and trade challenges.
Malaysia recorded total approved investments of RM575 billion across sectors in 2025, with domestic GDP growth projected at 5.2 per cent for Q3 2025, supporting a forecasted national growth rate of 4.0–4.5 per cent in 2026.
On social initiatives, the Minister said the Progressive Wage Policy will continue under the Ministry of Human Resources from 2026.
Regarding income classifications for subsidy targeting, he clarified, "The Government currently maintains the B40, M40 and T20 income classifications, with changes under review based on current needs. PADU is currently used for social assistance interventions, including RON95 subsidy targeting."
For poverty eradication, RM100 million has been allocated for the Implementation of IPR in 2026.
"Up to 31 October 2025, 6,770 households classified as hardcore poor, poor, or B40 have been approved to participate in the IPR programme, with an average participant income exceeding RM2,000 per month," he said, noting challenges such as site acquisition, public mindset, local authority requirements, and skill gaps, which the Ministry is addressing through collaboration with state governments and continuous monitoring.
On Bumiputera development, the Ikhtiar PuTERA35 initiative has raised average monthly household income from RM7,599 in 2022 to RM8,220 in 2024, reducing poverty rates from 7.9 per cent to 6.6 per cent.
"PKS Bumiputera contribution to GDP is primarily driven by PKS scaling initiatives and Gear-uP Bumiputera programmes under RP1, with RM1.3 billion allocated for Bumiputera entrepreneurship development," the Minister said.
Six less-developed states will receive RM679.11 million in 2026, within a national allocation of RM20 billion.
The Ministry aims to implement high-impact projects including infrastructure, talent development, and industrial zones to promote inclusive, sustainable growth.
On Sustainable Development Goals (SDG), Malaysia is projected to achieve 49 per cent of targets by 2030, surpassing the global average of 18 per cent.
"The Government remains committed to Agenda 2030 through strategies outlined in the 13th Malaysia Plan, involving state governments, local authorities, private sector, academia, NGOs and CSOs, including APPGM-SDG," he said.
Carbon capture and storage (CCUS) initiatives are being developed to support low-carbon growth in hard-to-abate sectors.
"CCUS implementation will generate high-skilled jobs and accelerate regional development, positioning Malaysia as a regional leader," Amir added.
The Ministry’s operational budget is set at RM632.4 million for 2026, a 5.25 per cent increase from 2025.
"The increase mainly covers emoluments for 3,890 staff under the Ministry, including the Department of Statistics Malaysia (DOSM), reflecting the 7 per cent salary adjustment under the Public Service Remuneration System effective January 2026," he explained. Operational costs for services and supplies total RM132.8 million.
On allocations for Iskandar Malaysia and NCIA/IRDA, the Minister detailed RM73.6 million for five projects, including youth facilities, talent ecosystem development, and infrastructure upgrades to enhance investment and local economic activity.
PBK impact assessments and corridor governance reviews continue, with RM87.56 billion in investment and 108,243 jobs recorded up to October 2025.
Amir confirmed that PKEN Perlis remains operational, focusing on project continuation rather than new applications.
The minister expressed his gratitude to the 13 Members of Parliament who participated in the Committee Stage debate on the Ministry of Economy’s allocation - November 10, 2025
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