Is Budget 2027 Anwar’s last?

Prime Minister Anwar Ibrahim unveiled Budget 2027 amidst the imminent general elections, expecting a more election-focused plan. However, the budget presented was a steady, work-a-day "civil service" budget, lacking a dramatic "wow factor". The complex political landscape of the unity government necessitated a pragmatic approach, as a flashy plan would have been met with caution.

Despite the economic fundamentals appearing robust, the budget aimed to continue dual ambitions of "raising the ceiling" and "lifting the floor". While minimum wage rises to RM2,000, the higher RM2,500 benchmark for graduate positions benefits only a few. Rahmah and SARA benefits were slightly increased for nine million core recipients, with SARA-untuk-Semua institutionalized with a tiny RM100 credit.

Directives for civil servants and increased personal income tax reliefs were announced, targeting middle-to-higher income earners. Notably absent was any reinstatement of the GST. Administrative fixes in healthcare and no big reforms in elderly care were made. Directing investment through GLICs into sectors like semiconductors and AI infrastructure is a continuation of existing policies.

The budget's conservative path held back from sweeping reforms or aggressive handouts, opting for fiscal conservatism in a coalition government where key partners hold significant leverage. While the budget may feel underwhelming for everyday voters, it reassures markets and maintains coalition unity.