Budget won’t resolve economic woes, but govt will help cushion financial pressure

Prime Minister Anwar Ibrahim acknowledged during a special interview regarding the 2027 federal budget estimates that the country's economic challenges would not be solved by the budget. However, the government will concentrate on alleviating the burden caused by rising prices of goods and certain services for the public. Anwar explained that funds saved from curbing leaks and improving governance will be redirected to the people.

He used the example of the increased cost of imported phosphate fertiliser due to the Hormuz Strait's closure following the US-led war against Iran. Despite fluctuations in commodity prices, logistics costs, and international supply chain disruptions being beyond the government's control, Anwar stated that Putrajaya could help reduce financial pressure.

He proposed streamlining the supply chain, expanding farmers' markets, and boosting sales through the Federal Agricultural Marketing Authority. Anwar also mentioned that a stronger fiscal position, achieved through disciplined financial management, would enable the government to provide assistance like sports shoes for schoolchildren, allowances, and minimum income support for rubber smallholders and paddy farmers.

He emphasized that these initiatives in the 2027 budget aimed to enhance the public's quality of life while acknowledging the challenges they face. The 2027 budget estimates amount to RM460 billion, a RM40 billion increase from the 2026 estimates.