Archive · 19 Aug 2026
Malaysia Budget 2027 Targets Living Costs and Resilience
Malaysia is preparing a national budget for 2027.
The government says it wants to help people manage the cost of living.
It also plans to improve support for vulnerable people, small businesses, women and young people.
Informal and gig workers may receive better social protection.
The budget will encourage investments that create jobs, new technology and local supply chains.
Important areas include semiconductors, artificial intelligence, healthcare, energy and food.
The government will present the budget in Parliament on October 9, 2026.
Separately, Malaysian factories were using more of their available production capacity in the second quarter of 2026.
Malaysia’s Budget 2027 will target cost-of-living pressures, social protection, public services and high-value investment.
The budget will support vulnerable groups, MSMEs, women, youth, informal workers and gig workers.
Priority investment sectors include semiconductors, artificial intelligence, digital services, energy transition, pharmaceuticals, logistics and aerospace.
The government plans measures involving renewable energy, food production, cybersecurity, healthcare, education and digital skills.
Manufacturing capacity utilisation rose to 83.7% in the second quarter of 2026, up 1.2 percentage points year on year.
- Who
- Malaysia’s Ministry of Finance and government.
- What
- The government announced the priorities for Budget 2027 and separately reported stronger manufacturing capacity utilisation.
- When
- Budget 2027 is scheduled to be tabled on October 9, 2026; manufacturing data covers the second quarter of 2026.
- Where
- Malaysia, with the budget to be tabled in Parliament.
- Why
- The government aims to ease living-cost pressures, build a more inclusive and resilient economy, attract high-value investment and improve economic capacity.
- Budget presentation
- Budget 2027 will be tabled in Parliament on October 9, 2026.
- Budget focus areas
- The budget will be guided by ten focus areas.
- Manufacturing utilisation
- Overall manufacturing capacity utilisation reached 83.7% in the second quarter of 2026.
- Annual change
- Manufacturing capacity utilisation increased 1.2 percentage points from the second quarter of 2025.
- Quarterly change
- Utilisation rose 0.9 percentage point from 82.8% in the first quarter of 2026.
- Leading manufacturing segment
- Transport equipment and other manufactures recorded 87.2% utilisation.
- Electrical and electronics
- Electrical and electronics products recorded 85.3% utilisation, up 2.6 percentage points year on year.