Budget 2027 To Boost Malaysia’s Competitiveness In High-value Industries – Amir Hamzah
By Kenny Teng
BANGKOK, Oct 17 (Bernama) -- Budget 2027 will strengthen Malaysia’s position in high-value industries by attracting quality investments, deepening local supply chains and developing skilled talent, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Amir Hamzah said the budget, the fifth under the Ekonomi MADANI framework, builds on the National Industrial Master Plan 2030 (NIMP 2030), National Energy Transition Roadmap (NETR) and National Semiconductor Strategy (NSS) to move Malaysia further up the value chain.
“The clarity is that we have also rolled out our NIMP, NETR and NSS, which tells the world these are the industries that we want in Malaysia because these are industries that we view as value-adding,” he told Bernama during an exclusive interview.
Earlier, Amir Hamzah was leading the Malaysian delegation to the IMF-World Bank Group Annual Meetings held at the Queen Sirikit National Convention Centre (QSNCC) here.
He said established semiconductor companies, including Intel and Infineon, were expanding their Malaysian operations, creating opportunities in higher-value activities and skilled employment.
“Intel, for instance, is moving into chip design and advanced packaging, with the first phase of its expansion expected to begin coming onstream by the end of this year,” he said.
Amir Hamzah emphasised that the government was also shifting its investment incentive approach to prioritise investments that generate greater domestic value through local vendor participation, workforce training and higher-paying jobs.
He said that strengthening local supply chains would enhance Malaysia’s appeal as a reliable manufacturing base amid global disruptions, while improved access to financing would help domestic vendors expand alongside multinational companies.
He said the government was also investing in skills development and industry-academia partnerships to ensure a ready supply of talent for expanding high-value sectors.
Amir Hamzah said supporting infrastructure is another priority, particularly in the northern industrial corridor encompassing Penang, Kulim in Kedah and parts of Perak.
“The expansion of Penang International Airport is expected to increase its annual passenger capacity from 6.5 million to 12.5 million by 2029, improving connectivity and cargo capacity, while road upgrades, improved water and electricity supply, and the ongoing Penang Light Rail Transit Mutiara Line project will support industrial growth,” he said.
Meanwhile, on fiscal consolidation, Amir Hamzah said the government remained on track to reduce the fiscal deficit to below three per cent of gross domestic product (GDP) by 2028.
The deficit narrowed from 6.4 per cent in 2021 to 3.7 per cent last year and is projected at 3.6 per cent this year and 3.3 per cent next year.
He said stronger economic growth, improved revenue collection, targeted subsidies and better public spending would support fiscal consolidation while preserving resources for productive investments.
“This is not about getting to the number only. This is about how you build a better health of the economy, health of the fiscal position, and make sure that we address the problems today. We do not pass the problems to other generations,” he said.
On Oct 9, the Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, tabled Budget 2027 themed “Reaching for the Sky, While Anchored On Our Values” with a government allocation amounting to RM459.8 billion, alongside RM25 billion in investments from government-linked investment companies (GLICs); RM11 billion in public-private investments; and RM14.2 billion in investments from Federal Statutory Bodies and the MoF Inc.
This brings the total allocation under Budget 2027 to RM510 billion, continuing the government’s expansionary fiscal policy.
The Fifth MADANI Budget aims to translate resilient economic growth into tangible benefits for the people through better wages, more efficient targeted support, stronger fiscal discipline, and accelerated efforts to develop higher-value industries.
-- BERNAMA