2026 Budget: A Prudent yet Supportive Budget 2026
- Malaysia stands at a pivotal juncture in a complex economic landscape shaped by continued domestic reforms and priorities as well as global uncertainties inflicted by the shifting trade policy, prolonged geopolitical conflicts and disruptive trends.
- Against this backdrop, the 2026 Budget is framed as a responsible Budget for sustaining economic resilience, accelerating transformation to mitigate the disruptive trends and empowering the people, aligning with the fundamental pillars of MADANI Economy Framework and the 13th Malaysia Plan (13MP), 2026-2030.
- The 2026 Budget, being the first budget to implement 13MP, has laid out strategies and initiatives to address immediate economic concerns for households (cost of living and wage growth) and businesses while continuing to unlock new sources of growth, shifting the industrial base towards technology-driven and innovative models, and integrating sustainable practices and green technologies.
- The measures, initiatives and development programs are wide-ranging, with the provision of targeted incentives, funds and soft loans for specific sectors. Amongst these focusing on cultivating downstream ecosystems to support high growth-high value (HGHV) sectors (such as semiconductor, green energy), prioritizing technology adoption, innovation and AI, developing and securing supply chains capability, skills and training development, particularly for TVET, accelerating regional development through Johor-Singapore Special Economic Zone (JS-SEZ) and the development of Special Tourism Investment Zones (STIZ) in Johor, Melaka, Negeri Sembilan and Sarawak.
