Pre-Budget Statement 2027

1. INTRODUCTION Budget 2027 is the fifth MADANI Budget. It seeks to build on the gains of the Ekonomi MADANI framework and carry Malaysia forward. As the second budget under the Thirteenth Malaysia Plan (Thirteenth Plan), it is guided by three priorities: Raising the Ceiling for national growth, Raising the Floor for the people’s living standards, and Driving Reform in Governance. The year 2026 has been a sobering reminder that, in an increasingly unsettled world, stability cannot be taken for granted. The protracted conflict in West Asia drove crude oil prices above US$100 a barrel and sent shockwaves through global supply chains. Yet Malaysia has held its ground. The structural reforms pursued since the first MADANI Budget, from fiscal consolidation and targeted subsidies to a broader base of growth, have given the economy and the people a buffer against the shock. Budget 2027 must balance two pressing imperatives: protecting households from the strain of the energy crisis and rising living costs, while laying the foundations for a higher-value, more sophisticated economy. It remains faithful to the MADANI administration’s priorities: driving productivity- and innovation-led grow

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