00:00Budget 2026 marks a major turning point in Malaysia's fiscal management, with Putrajaya
00:05showing strong commitment to financial discipline, efficient governance, and high-impact spending,
00:11say economists.
00:12University Technology Mara's Idam Razak described the government's 3.5% fiscal deficit
00:17target as realistic, supported by fiscal consolidation, improved revenue, and the Fiscal Responsibility
00:23Act.
00:24He said Malaysia had sustained social assistance and development spending without compromising
00:29fiscal stability, reflecting a more structured and data-driven fiscal policy.
00:34University Malaya's Golem Thai agreed that the 3.5% deficit goal was attainable if fiscal
00:40reforms like subsidy rationalization and tax-based expansion continued.
00:45He cited the Budi Madani Ra95 initiative as proof of the government's resolve to prevent
00:49leakages while protecting public welfare, alongside e-invoicing and GDP growth of 4% to 4.5%.
00:57Both economists said the FRA and improved public procurement would enhance transparency and
01:02efficiency, boosting investor confidence, and maintaining stable international ratings
01:07of A-, A3, and BBB+.
01:11Goh added that fiscal discipline should focus on smart fiscal consolidation, cutting unproductive
01:16spending while investing in education, healthcare, housing, and the digital economy.
01:21With RM470 billion allocated, Budget 2026 introduces measures like a carbon tax, green investment
01:28tax allowance, and AI and cybersecurity training deductions, signaling Malaysia's shift toward
01:33fiscal discipline, sustainability, and accountability, according to IDAM.
01:38Dandy Sharajareza, FMT.
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