The entire nation is now awaiting the tabling of Budget 2026 on October 10, which is expected to be the key document in determining the direction of Malaysia's economy amidst the challenges of the global landscape.
The first budget under the 13th Malaysia Plan (13MP) focuses on fiscal reforms, strategic infrastructure investments and targeted subsidies.
According to TA Securities, Budget 2026 is expansionary in nature with a total allocation of RM425.5 billion, an increase of 3.3% compared to last year.
This spending is important to achieve the GDP growth target of between 4.5 to 5.0% in 2026.
The move demonstrates the government's commitment to continue stimulating domestic economic growth despite external pressures.
The fiscal deficit is expected to decline to 3.8% of GDP in 2026, compared to 4.0% in 2025, in line with the Fiscal Responsibility Act (FRA) goal of bringing the deficit below 3.0% by 2030.
Government revenue is expected to reach RM343.8 billion in 2026, supported by the implementation of mandatory e-invoicing and the expansion of Sales and Services Tax (SST) coverage as well as increased corporate and individual taxes.
Around 80% of the budget (RM341 billion) is allocated for operating expenses, while RM84 billion is allocated for development with a focus on infrastructure, green economy and digitalisation in line with the priorities of the 13th RMK.
The government is also expected to maintain existing infrastructure projects and detail initiatives to attract high-value investments through the strengthening of the New Investment Incentive Framework (NIIF) for technology and innovation companies.
