Belanjawan 2027 perlu disusuli reformasi hasil, perbelanjaan, kata badan pemikir

In 2027, the government allocated RM459.84 billion, an increase of RM40 billion compared to RM419.2 billion for 2026. The Institute for Democratic and Economic Affairs (IDEAS) believes that the government must broaden the sources of income, tighten budgetary discipline, and strengthen essential services to realize the continuous advancement of the 2027 budget.

IDEAS emphasizes that deficit reduction efforts should be accompanied by structural reforms to strengthen long-term fiscal resilience and competitiveness of the Malaysian economy. The target deficit-to-GDP ratio for 2027 is 3.3%, but IDEAS notes that the tax-to-GDP ratio, which remains at 12.8%, and the pledge to reduce union revenues to 16.4% of GDP indicate limited progress in broadening the income base.

The report states that continued dependence on petroleum revenue and Petronas dividend payouts of RM32 billion strengthens the need for comprehensive tax reform and a clear dividend framework to balance government expenses with Petronas' long-term capacity. Regarding subsidies, IDEAS refers to the RM40 billion cost of fuel subsidies in 2026 and urges better-targeted support, with priority to households in greatest need.

It also questions whether a 2.6% increase in the health budget is sufficient to cover rising medical costs and labor shortages. The report calls for continued investment in health, education, and social protection to ensure that economic growth benefits more Malaysians. Regarding institutional reforms, IDEAS points out that the 2027 budget does not include a clear timeline for political financing legislation, term limits for the Prime Minister, separation of state counsel and prosecutor roles, and electoral reform.

However, it suggests progress toward parliament autonomy and proposes a review of the establishment of a constitutional reform commission. The report stresses that these efforts should be supported by a clear process, meaningful public consultation, and strengthened parliamentary oversight. Concerning federal-state relations, IDEAS recommends a RM18.7 billion increase for Sabah and RM16.2 billion for Sarawak, but notes that continued progress requires more than just increased budget allocations for a single year.

"The government needs to develop a fair, clear, and predictable formula for federal transfers and special grants, to be agreed upon through meaningful consultation with both state governments," it states. "This step would provide greater certainty about future financing and ensure that budget allocations better reflect regional development needs."

The government allocated RM459.84 billion for 2027, an increase of RM40 billion compared to RM419.2 billion for 2026. The government expects expenditures to exceed RM80 billion for subsidies, assistance, and incentives in 2027, with fuel subsidies projected to remain high at RM40 billion.