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

In a recent interview, Prime Minister Anwar Ibrahim stated that the 2027 federal budget estimates, released yesterday, would not be sufficient to resolve all of the country's economic issues. However, the government aims to alleviate the impact of rising prices on essential goods and services for the public. Anwar highlighted the cost increase of imported phosphate fertiliser due to the Hormuz Strait closure as an example of external factors beyond the government's control.

Despite this, Putrajaya can help by streamlining the supply chain, expanding farmers' markets, and increasing sales through the Federal Agricultural Marketing Authority. The prime minister also mentioned that a stronger fiscal position could be achieved through better financial management, allowing the government to provide support such as sports shoes for schoolchildren and allowances for rubber smallholders and paddy farmers.

The 2027 budget's objectives are to improve the quality of life for citizens while addressing the challenges they face. The budget increases total expenditure to RM460 billion, up from RM420 billion in 2026.