Budget 2027 Development Allocation Anchors 13MP Strategy -- MoF
KUALA LUMPUR, Oct 15 (Bernama) -- The RM83 billion development expenditure allocation under Budget 2027 forms part of Malaysia’s RM430 billion five-year development allocation under the 13th Malaysia Plan (13MP) 2026–2030 to expand productive capacity and drive higher-value economic growth, said the Ministry of Finance (MoF).
MoF Deputy Undersecretary (Macroeconomics Sector, Fiscal and Economics Division) Rozita Abd Matalib said Budget 2027 translates the medium-term direction of the MADANI Economy and the 13MP into annual funding and implementation, prioritising high-value manufacturing, digital activities, and energy transition projects.
“Our strategy is to strengthen Malaysia’s productive capacity so that we can sustain higher-value growth, create better-paying jobs, and improve living standards.
“Under the MADANI Economy, the 13MP connects raising the ceiling of economic competitiveness with raising the floor of people’s well-being,” she said during the MARC360 virtual panel discussion “Decoding Budget 2027 -- The Economy and What Comes Next” today.
Rozita said the 13MP targets annual gross domestic product (GDP) growth of 4.5 per cent to 5.5 per cent and annual labour productivity growth of 3.6 per cent.
"Industry upgrading is central to this approach, with our New Industrial Master Plan (NIMP 2030) and National Semiconductor Strategy supporting Malaysia’s expansion into higher-value activities, including integrated circuit (IC) design, advanced packaging, and technology development,” she said.
She also said Malaysian companies should develop their own intellectual property and serve international markets.
“Practical adoption of digitalisation and artificial intelligence (AI) across manufacturing, business processes, and service delivery will further drive productivity gains.
“Additionally, public capital investments will be complemented by private capital through public-private partnerships (PPP) and investments under the National Energy Transition Roadmap (NETR) in renewable energy, energy storage, and grid infrastructure to strengthen energy security,” she said.
-- BERNAMA