KUALA LUMPUR, Oct 10 (Bernama) -- Budget 2027 is expected to sustain economic growth while maintaining fiscal discipline, with Malaysia’s fiscal deficit projected to narrow to 3.3 per cent of gross domestic product (GDP) next year, according to MBSB Investment Bank Bhd (MBSB IB).
Business : Budget 2027 To Support Growth, Reduce Fiscal Deficit To 3.3 Pct - MBSB IB
MBSB IB, FBM KLCI, outlook, economy, Budget 2027,
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Key points
- The investment bank said total government expenditure is expected to increase to RM460 billion in 2027 from the revised estimate of RM444 billion this year, while improved revenue collection and continued economic growth are expected to support further fiscal consolidation.
- The projected fiscal deficit of 3.3 per cent next year would be lower than the estimated 3.6 per cent in 2026 and keep the country on track to achieve its medium-term deficit target of 3.0 per cent of GDP.
- Going into 2027, the investment bank expects Malaysia’s economy to remain resilient, with its preliminary GDP growth forecast at 4.6 per cent.
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