Terengganu ranks 1st nationwide for state budget transparency

Malaysia's Terengganu state has claimed the top spot in the latest Malaysia Open Budget Index (MyOBI) for budget transparency, according to a report by the Institute for Democracy and Economic Affairs (IDEAS). The MyOBI 2026 ranking highlights Terengganu's exceptional detail in disclosing expenditure, including allocations at the program level.

Other top-ranking states, Selangor, Perak, and Negeri Sembilan, have also made significant strides in public budget information disclosure. While the four leading states provide comprehensive data on estimated revenues and expenditures, and publish detailed estimates of state revenue, IDEAS cautions that no state has achieved complete transparency yet.

Notably, Terengganu was the only state to publish its 2026 enacted budget within the assessment period. Despite these achievements, IDEAS points out that substantial disclosure does not equate to complete transparency, as states still lag in publishing essential budget documents in a timely manner, such as supply bills, enacted budgets, and year-end reports.

Nine states have improved budget information availability since the previous assessment, with Pahang experiencing the most significant improvement. Nevertheless, IDEAS stresses that timely publication of budget information, stronger legislative oversight, and meaningful public participation are crucial for enhancing transparency and accountability in state budgeting. IDEAS CEO Aira Azhari emphasized that all states must continue working towards these improvements.