2027 Budget savings to ease cost-of-living pressures, says Anwar
PUTRAJAYA: The government will continue to prioritise prudent fiscal management under the 2027 Budget to channel savings back to the people and ease cost-of-living pressures, particularly among lower-income groups.
The government is prioritising prudent fiscal management in the 2027 Budget to alleviate cost-of-living pressures, especially among lower-income groups, according to Prime Minister Datuk Seri Anwar Ibrahim. The government aims to channel savings from improved governance and leakages reduction back to the people, while maintaining financial assistance for those in need.
Despite Malaysia's inflation rate being around two per cent, people continue to feel cost-of-living pressures due to rising prices of certain goods and services. Anwar explained that addressing debt, saving, and setting priorities were necessary before implementing the budget adjustments. The government also needs to balance debt reduction and spending control with increasing allocations for critical sectors, such as defence, housing for military and police personnel, and school facilities.
The stronger fiscal position enables the government to provide assistance like sports shoes for schoolchildren, allowances, and minimum-income support for smallholders and padi farmers. The government's economic strategy focuses on high-value sectors like IT and AI, but these development efforts must be accompanied by raising incomes, productivity, and addressing wage and price concerns.
The government aims to achieve strong economic growth that translates into quality jobs, higher wages, and a narrower income gap.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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