Malaysia projects higher fiscal revenue than spending for 2027-2029 under MTFF

The Fiscal Outlook and Federal Government Revenue Estimates Report 2027 outlines Malaysia's Medium-Term Fiscal Framework for 2027-2029, projecting total federal revenue of RM1.16 trillion, or roughly 15.7% of GDP. Operating expenditure is estimated at RM1.15 trillion (about 15.5% of GDP) while development spending is set at RM253 billion (3.4% of GDP), reflecting continued investment in priority projects. The forecast rests on assumptions of an average real GDP growth of five percent, crude oil prices averaging US$78 a barrel and daily production of about 500,000 barrels.

Non-petroleum sources remain the primary revenue driver. The report highlights that the fiscal deficit is expected to decline as revenue mobilisation, expenditure optimisation and better value for money take effect. It also notes plans to involve the private sector through financing and co-investment, and to strengthen oversight of government-owned entities to contain fiscal risks.