KUALA LUMPUR, Sept 11 — Budget 2027 should move Malaysia’s artificial intelligence (AI) agenda beyond data centre construction towards enterprise adoption, domestic intellectual property, cybersecurity and workforce productivity.
MBSB Investment Bank Bhd (MBSB IB) said there should also be focus on supply-side efficiency by broadening the tax base, closing leakages, expanding consumption excises, introducing carbon pricing, rationalising spending and crowding in private investment.
“Budget 2027 should not only be assessed through fiscal expenditure. It should also strengthen Malaysia’s broader investment ecosystem and the mobilisation of domestic capital,” it said in its Budget 2027 preview today.
MBSB IB emphasised that its wish list centres on policy certainty, transparent project implementation, outcome-based incentives and measures that channel long-term savings into productive investment.
“A successful budget would not merely provide near-term economic support, but it would improve access to growth capital, strengthen domestic capabilities and help translate Malaysia’s investment cycle into sustainable productivity, higher-quality employment and long-term economic value,” it added.
MBSB IB also emphasised that a multi-year project pipeline, with project values, tender timing, funding sources and execution milestones disclosed, should be published.
“This would improve planning and reduce speculative market movements,” it said.
Budget 2027 is scheduled to be tabled on Oct 9, 2026, and would be the fifth Madani Budget and the second budget under the 13th Malaysia Plan.
On the overall Budget 2027 allocation, MBSB IB said the budget is expected to remain moderately expansionary, with total federal government expenditure potentially reaching a new record of around RM440.9 billion, compared with Budget 2026’s RM421.2 billion.
“The larger allocation is likely to reflect higher operating expenditure, continued social and cost-of-living support, as well as higher development spending.
“Nevertheless, the increase is expected to remain measured as the government continues to balance the need to support economic growth with its medium-term fiscal consolidation objectives,” it said.
Development spending is expected to increase to between RM85 billion and RM90 billion, up from RM81 billion in Budget 2026.
On the fiscal deficit, MBSB IB said the deficit is expected to narrow to around 3.3 per cent to 3.5 per cent of Gross Domestic Product (GDP) in 2027.
Meanwhile, the investment bank said federal government revenue is expected to improve further in 2027, supported by increased direct and indirect tax collections on the back of sustained economic growth, continued efforts to broaden the revenue base and improved fiscal collections.
“For 2026, MOF had originally projected revenue of RM343.1 billion, underpinned by better tax collection and digitalisation initiatives. Total revenue is estimated to reach RM365.1 billion next year,” it added. — Bernama
Date: 11 September, 2026 12:20 pm
Source: Malay Mail
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