Malaysia

No blanket budget cuts for health and education under 2026 spending review - MOF

The Ministry of Finance affirms that the Health and Education Ministries remain fully prioritised despite broader fiscal consolidation measures

Updated 2 months ago · Published on 10 Jul 2026 9:20AM

No blanket budget cuts for health and education under 2026 spending review - MOF
Malaysia's expenditure optimisation exercise for 2026 will not undermine healthcare or education services - July 10, 2026

THE Ministry of Finance (MOF) has assured that the government's expenditure optimisation measures for 2026 do not involve blanket funding cuts to the Ministry of Health (MOH) or the Ministry of Education (MOE), stressing that essential public services will continue without disruption.

In a written reply tabled in the Dewan Rakyat, MOF said any adjustments to expenditure have been carefully calibrated to safeguard the delivery of critical healthcare and education services while supporting the government's broader fiscal consolidation agenda.

MOF said the government's priorities for the Ministry of Health remain unchanged, with continued emphasis on public healthcare delivery, the maintenance of healthcare facilities, the procurement of medicines and medical equipment, and strengthening the resilience and capacity of Malaysia's healthcare system.

For the Ministry of Education, the ministry said funding priorities continue to centre on school operations, the welfare of students and teachers, the maintenance of educational institutions, and the implementation of high-impact education programmes.

"The expenditure optimisation measures are focused on areas where savings can be achieved without affecting the quality of or access to education," the ministry said.

The clarification was provided in response to a parliamentary question from Datuk Seri Mohd Shafie Apdal (Semporna), who sought details on ministries affected by expenditure reductions and whether allocations for the Health and Education Ministries had been curtailed.

MOF said the expenditure control measures are part of the government's efforts to reinforce Malaysia's fiscal position in response to the ongoing crisis in West Asia while ensuring public finances are managed in a prudent and sustainable manner.

According to the ministry, the optimisation exercise includes reviewing programme priorities, rescheduling less critical activities, reducing expenditure with minimal impact on government service delivery, and maximising the use of existing resources.

It added that ministries and government agencies have been given the flexibility to reprioritise their spending according to operational requirements and current needs to ensure that services to the public remain uninterrupted.

"At the same time, the Ministry of Finance remains open to examining and discussing any urgent funding requirements submitted by ministries and agencies, subject to the government's fiscal position and prevailing expenditure priorities," the ministry said. - July 10, 2026

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