RHB Keeps Malaysia’s 2027 GDP Growth Forecast At 4.9 Pct On Supportive Budget
KUALA LUMPUR, Oct 16 (Bernama) -- RHB Bank Bhd has maintained its 2027 gross domestic product (GDP) growth forecast for Malaysia at 4.9 per cent, following the tabling of Budget 2027.
The projection is towards the upper end of the government’s official projection range of 4.2-5.2 per cent, it said.
In a note today, RHB said Budget 2027 adopts a moderately expansionary and growth-supportive stance, balancing inclusive nation-building with fiscal sustainability.
"We view the budget as supportive of the domestic economy in the short and long term, channelled through three key priorities, namely lifting household incomes to sustain private consumption, strengthening micro, small and medium enterprises (MSMEs) resilience and competitiveness, and catalysing investment to support longer-term growth," it said.
It also said private consumption would be underpinned by the budget's supportive measures via three main aspects, namely higher wages and household incomes, targeted cash assistance, and measures to ease cost-of-living pressures.
Prime Minister Datuk Seri Anwar Ibrahim, who his also Finance Minister, tabled the Budget 2027 themed "Reaching for the Skies, While Anchored on Our Values" in Parliament on Oct 9.
Totalling RM459.8 billion in federal government expenditure, the budget comprises RM376.8 billion in operating expenditure (OE) and RM83 billion in development expenditure (DE).
RHB Bank said higher DE of RM83 billion (against RM81 billion in Budget 2026), transport infrastructure projects, special economic zones and economic corridors, as well as incentives for strategic industries, should help attract quality investments and support Malaysia’s transition towards higher-value activities in the medium term.
On the fiscal position, the bank said fiscal consolidation remains on track, with the fiscal deficit projected to narrow to 3.3 per cent of GDP in 2027 from an estimated 3.6 per cent of GDP in 2026.
As a result, total federal debt is expected to decline to 60.3 per cent of GDP in 2027 from 62.9 per cent projected for 2026, bringing it closer to the statutory ceiling of 60 per cent, it added.
“Revenue growth will be supported by economic activity, resilient consumption and returns from government-linked assets, while revenue realisation and spending efficiency remain key to achieving the fiscal target,” it said.
-- BERNAMA