Budget 2027 To Strengthen Enterprises, Productivity And Household Wellbeing - HLB
KUALA LUMPUR, Oct 10 (Bernama) -- The Budget 2027 reinforces Malaysia’s ambition to build a more productive and resilient economy while ensuring that progress delivers meaningful benefits to businesses and households, according to Hong Leong Bank (HLB).
The bank highlighted the government’s emphasis on strengthening local enterprises, accelerating AI adoption, advancing energy transition and supporting Halal enterprise development, alongside measures to ease living costs and maintain fiscal discipline.
The government’s projected real gross domestic product (GDP) growth of 4.2 per cent to 5.2 per cent for 2027 is broadly aligned with the 13th Malaysia Plan’s target of 4.5 per cent to 5.5 per cent and encompasses HLB’s forecast of 5.0 per cent.
“HLB expects growth to be supported by resilient domestic demand, continued policy support and investment in high-value digital services and AI.
“Tourism activity associated with Visit Malaysia Year 2026-2027, SEA Games 2027 and LIMA 2027 is expected to provide further momentum,” it said in a statement today.
The bank said maintaining fiscal discipline alongside these growth ambitions will be essential to sustaining confidence and preserving Malaysia’s capacity to respond to future challenges.
The projected narrowing of the fiscal deficit in 2027 to 3.3 per cent of GDP, or RM77.5 billion, together with the six per cent increase in the revised revenue estimate for 2026, provides a firmer fiscal foundation amid persistent global uncertainty.
HLB said that over time, investment quality and implementation effectiveness will be equally important as the pace of growth.
Budget 2027 places the rakyat at the centre of its priorities through targeted assistance, measures to support wage growth and personal tax relief.
Expanded support through STR, SARA, and BUDI MADANI fuel subsidies offers important cost-of-living relief, while the minimum wage increase to RM2,000 strengthens the earnings base for lower-income workers.
Together with middle-income tax reductions, higher tax relief limits and stamp duty exemptions, HLB believes these measures can create greater room for households to manage expenses, build savings and pursue homeownership.
Meanwhile, the bank said the Education Ministry’s nearly RM69 billion allocation, the largest overall, underscores the government’s steadfast commitment to investing in the nation’s future.
HLB said it shares this priority by actively supporting schools and enhancing learning environments through corporate contributions and strategic partnerships.
“Our flagship financial literacy programmes, HLB DuitSmart and HLB @ School, empower students and young Malaysians with essential money management skills, building strong foundations for lifelong financial wellbeing,” it said.
On support for businesses, HLB said the Budget’s financing guarantees, tax measures and support for AI and automation can help Small and Medium Enterprises (SMEs) improve productivity and reach new markets.
“Realising these benefits will require financing alongside practical guidance and skills development.
“We will continue to support businesses in making investments that address their needs and strengthen long-term competitiveness,” it said.
HLB added that support for Halal certification can open new opportunities for local enterprises, complemented by stronger capabilities and market access.
“HLB Islamic’s BizHalal approach supports this wider growth journey, while social finance initiatives such as iTEKAD combine funding with capability building to help underserved entrepreneurs build sustainable livelihoods,” it said.
-- BERNAMA