2027 budget supports economic growth, strengthens local enterprises' competitiveness, say banking leaders
KUALA LUMPUR: 2027 Budget's focus on fiscal consolidation, business financing and technology adoption is expected to support Malaysia’s economic growth while strengthening the competitiveness of local enterprises, according to banking industry leaders.
The 2027 Malaysian Budget emphasizes fiscal consolidation, business financing, and technology adoption to support economic growth and strengthen the competitiveness of local enterprises, according to banking industry leaders. AmBank Group CEO Jamie Ling described the budget as a balance between growth and fiscal responsibility, providing households and businesses greater confidence to spend and invest.
The budget projects economic growth of 4.2% to 5.2% in 2027, with a goal of reducing the fiscal deficit to 3.3% of gross domestic product from 3.6% in 2026. Higher cash aid, tax relief, and wage-related measures aim to protect purchasing power and support private consumption. Hong Leong Bank CEO Kevin Lam welcomed the government's focus on local enterprise growth, AI adoption, energy transition, and Halal enterprise development.
OCBC Bank CEO Tan Chor Sen highlighted lower tax rates, technology investments, and expanded financing for SMEs, as well as measures to support Malaysia's external trade and expansion into new markets. CIMB Group CEO Novan Amirudin emphasized the government's balancing act between short-term support and long-term sustainability, with banks as active partners in advancing sustainable growth and economic resilience.
Bank Islam Malaysia CEO Raja Datin Paduka Teh Maimunah Raja Abdul Aziz noted the timely emphasis on strengthening the Islamic finance ecosystem, particularly for financial inclusion and sustainable economic participation.
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