The upcoming Malaysia’s Budget 2026 will advance the MADANI Economy agenda with a dual focus on driving long-term economic reforms and improving the rakyat’s quality of life, according to the Finance Ministry (MOF).
The ministry shared that as the first budget under the 13th Malaysia Plan (2026-2030), it will continue delivering on MADANI’s three pillars: Raising the ceiling of national growth, raising the floor of living standards and driving reform in governance.
“The government aims to position Malaysia among the world’s top 12 most competitive economies by 2033 while ensuring inclusive development,” MOF said in its pre-budget statement on Aug 8.
The ministry highlighted that for 2025, GDP growth is projected at 4%-4.8%, supported by strong domestic demand, record approved investments of RM384.4 billion in 2024, easing inflation at 1.1% in June and a stronger ringgit up 5.8% year-to-date.
“Fiscal consolidation remains on track, with the deficit targeted at 3.8% and new debt issuance continuing to fall,” MOF said, adding that Budget 2026’s reform thrust includes modernising public service delivery, enhancing transparency through upcoming laws such as the Government Procurement Act and Freedom of Information Act, and accelerating GovTech adoption.
On the economic front, the ministry said it will push high-growth, high-value sectors like semiconductors, renewable energy, artificial intelligence and advanced manufacturing, supported by tailored investment incentives and regional development initiatives.
“To ‘Raise the Floor’, the budget will strengthen targeted subsidies, social protection, healthcare affordability, education reforms and infrastructure for rural and underserved areas, while empowering youth, women, senior citizens, persons with disabilities and indigenous communities,” it noted.
The government is scheduled to table the Budget 2026 in Parliament on Oct 10, 2025.
