KUALA LUMPUR: Development expenditure is projected to rise a modest 3.8 per cent year-on-year to RM83 billion under Malaysia's 2027 Budget, CIMB Securities said.
The government allocated RM80 billion for development expenditure in 2026 Budget.
An estimated RM9 billion decline in petrol and diesel subsidies to RM32 billion in 2027 could provide fiscal headroom to fund development projects, CIMB Securities analysts Kenny Mak Hoy Ken and Wei Yi Tan said in a report today.
In the first nine months of 2026, domestic project awards reached RM177 billion, equivalent to 76 per cent and 72 per cent of the total value of jobs awarded in 2024 (RM234 billion) and 2025 (RM244 billion), respectively.
"Public-funded projects, however, amounted to only RM37 billion, or 57 per cent and 63 per cent of the levels recorded in 2024 and 2025, respectively.
