Prime Minister Datuk Seri Anwar Ibrahim has hinted that ministries may see reduced budget allocations in 2027 as Malaysia continues to face economic pressures linked to ongoing geopolitical conflicts in the Middle East.
Speaking at the launch of the Kuala Lumpur International Book Fair, Anwar said the conflict has affected regional security and the wider economy, including Malaysia’s.
Ministries told to look at reducing expenditure
As reported by NST, Anwar said Malaysia had recorded encouraging progress in the first quarter of the year, describing it as among the best in ASEAN and Asia.
However, he noted that the ongoing conflict and instability in the Gulf region have had an impact on the country’s economy.
When I ask for new decisions, ministries must understand that there has to be some reduction in expenditure.”
He added that it was not realistic for ministries to assume that no savings could be made from the RM20 billion allocation.
“It is impossible that nothing can be saved from the RM20 billion allocation. There are many areas where costs can be reduced,” he said.
Education remains a priority
Despite the possible reductions, Anwar stressed that education would continue to be prioritised.
He said the quality of education, as well as basic educational infrastructure in schools and universities, would not be disrupted.
This includes efforts to ensure that students continue to have access to proper learning facilities and that essential improvements in the education sector remain on track.
Economic pressures from ongoing conflicts
Anwar said the government has to remain cautious in its spending due to the wider impact of global instability.
The ongoing conflict in the Middle East, he said, has affected not only regional security but also economic conditions in Malaysia.
His remarks suggest that ministries may be expected to review their spending and identify areas where costs can be reduced ahead of the 2027 budget.
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