Malaysia’s development plans under Budget 2027 will proceed as scheduled despite rising global oil prices putting pressure on subsidies and fiscal space, Economy Minister Akmal Nasrullah Mohd Nasir said.
He said the Ministry of Economy had received a commitment that national development expenditure would continue into next year, with longer-term development priorities remaining separate from the immediate challenges posed by oil prices.
“At the level of the Ministry of Economy, we have received a commitment that, in terms of development commitment figures, it will continue into the coming year.
“We recognise that while managing oil prices is an urgent or near-term matter, long-term commitments must be kept,” he said at a press conference after the Ministry of Economy’s monthly assembly here today.
Akmal said oil prices remained difficult to predict, with movements in Brent crude potentially affected by several uncertain factors.
“In terms of the range of increase, it is still uncertain, and that is still very evident as if we look at the movement of Brent prices as an example, changes can occur due to several factors that are still uncertain,” he said.
He said the management of the impact on fiscal space falls under the purview of the Ministry of Finance, adding that there was still room to manage the burden on the public from higher global oil prices.
“But there is still room for us to ensure that the burden borne by the people due to the rise in world oil prices can be managed as best as possible.
“Certainly, in terms of fiscal space as explained by Prime Minister Datuk Seri Anwar Ibrahim or the Ministry of Finance, this matter is taken into account in our fiscal framework, but it does not interfere with the development planning under the Ministry of Economy,” he said.
Akmal said the oil price issue remained significant for Malaysia, particularly in balancing efforts to shield consumers from supply disruptions against the resulting fiscal burden from subsidies.
For Budget 2027, he said the Ministry of Economy would focus on supporting productive firms to grow and strengthening vendors’ capabilities in technology and innovation.
Global oil prices have been volatile amid geopolitical developments in West Asia, with Brent crude hovering around US$100 per barrel.
Budget 2027, the fifth MADANI Budget, is scheduled to be tabled in Parliament on Oct 9, with the Government highlighting growth, high-value jobs, competitiveness and high value-added economic development as key areas of focus.
