Growth must lift living standards: Johan Merican
KUALA LUMPUR: Malaysia's strong economic performance must translate into tangible improvements in living standards as the government balances economic growth with fiscal consolidation under the 2027 Budget.
Malaysia's economy has grown steadily, with a 5.2% increase in 2025 and projected growth between 4.8% and 5.3% this year, before moderating to between 4.2% and 5.2% in 2027. However, Treasury secretary-general Tan Sri Johan Mahmood Merican warns that this growth must translate into tangible improvements in living standards. The government's 2027 Budget aims to balance economic growth with fiscal consolidation, focusing on the Ekonomi Madani framework to ensure inclusive growth.
Despite Malaysia's inflation being under control, Johan notes that household incomes have not kept pace with rising living costs, making increasing incomes a priority. The minimum wage is set to rise to RM2,000 in June next year, with the government providing larger companies time to adjust before extending the increase to smaller businesses.
The government also aims to set a living-wage benchmark of RM3,400 for government-linked companies, which could serve as a reference for private-sector employers. Meanwhile, the government is cautiously optimistic about its fiscal policy, projecting a narrowing deficit to 3.3% of GDP by 2027, while investing RM459.8 billion in the 2027 Budget, up from RM419.2 billion in 2026.
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.
