Budget 2027 Advances MADANI Blueprint Vision Of Shared Prosperity - CIMB IB

KUALA LUMPUR, Oct 10 (Bernama) -- Budget 2027 reflects continued progress in building on Malaysia’s success in raising the ceiling while lifting the floor, fulfilling the MADANI blueprint’s vision of shared prosperity, said CIMB Investment Bank Bhd (CIMB IB).

In a note today, the investment bank said the budget embodies the redistribution of reform and growth dividends to a broader segment of society while maintaining a credible fiscal consolidation path.

“It retains elements of fiscal consolidation with a narrower budget deficit target of 3.3 per cent of gross domestic product (GDP), down from 3.6 per cent of GDP in 2026, while executing measures to distribute gains from sustained headline GDP growth, projected at 4.2-5.2 per cent in 2027, to household and businesses,” it said.

CIMB IB said that, excluding petroleum revenue and subsidies, it estimates an expansionary impulse of 0.16 percentage points of GDP.

“This is made possible by the fiscal space created in past budgets through subsidy targeting, cost efficiency, expanded tax coverage and broadening of the revenue base,” it said.

Meanwhile, the investment bank said the investments rollout in the budget plays an important role to raise productivity capacity for businesses over time.

“For small and medium enterprises (SMEs), lower tax rates help battle external shocks, especially when combined with financing support and investment incentives,” it added.

On Friday, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled Budget 2027, amounting to RM459.8 billion, comprising RM376.8 billion in federal operating expenditure and RM83 billion in federal development expenditure.

-- BERNAMA