Malaysia's 2027 budget aims to shrink fiscal deficit to 3.3% of GDP

According to Apex Securities, Malaysia's 2027 fiscal deficit is projected at RM76 billion, representing 3.3% of GDP, a slight improvement from the 3.5% expected in 2026 and aligning with the government's 3.0% goal for 2028. Revenue is estimated at RM383.3 billion, a 5.5% year-on-year increase, while operating expenditure is forecast to reach RM378.4 billion, up 4.6%. Gross development expenditure will rise to RM82.4 billion, modestly higher than the RM80 billion slated for 2026, indicating continued investment without launching a new stimulus cycle.

Household support via the combined Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah schemes is expected to climb to roughly RM17 billion, providing a buffer for lower- and middle-income families despite constraints from energy subsidies. The note highlights that the budget’s impact will be felt mainly in sectors tied to existing infrastructure projects and in growth areas such as AI, semiconductors and data-centre infrastructure, while tax changes are expected to be limited.