KUALA LUMPUR, 9 OCTOBER 2026 — Belanjawan 2027 reinforces Malaysia’s ambition to build a more productive and resilient economy while ensuring that progress delivers meaningful benefits to businesses and households. Hong Leong Bank (“HLB”) welcomes the Government’s emphasis on strengthening local enterprises, accelerating AI adoption, advancing the energy transition and supporting Halal enterprise development, alongside measures to ease living costs and maintain fiscal discipline.

 

The Government’s projected real GDP growth of 4.2% to 5.2% for 2027 is broadly aligned with the 13th Malaysia Plan’s target of 4.5% to 5.5% and encompasses HLB’s forecast of 5.0%. We expect growth to be supported by resilient domestic demand, continued policy support and investment in high-value digital services and AI. Tourism activity associated with Visit Malaysia Year 2026–2027, SEA Games 2027 and LIMA 2027, is expected to provide further momentum.

 

Maintaining fiscal discipline alongside these growth ambitions will be essential to sustaining confidence and preserving Malaysia’s capacity to respond to future challenges. The projected narrowing of the fiscal deficit in 2027 to 3.3% of GDP, or RM77.5 billion, together with the 6% increase in the revised revenue estimate for 2026, provides a firmer fiscal foundation amid persistent global uncertainty. Over time, the quality of investment and effectiveness of implementation will be as important as the pace of growth.

 

Belanjawan 2027 places the rakyat at the centre of its priorities through targeted assistance, measures to support wage growth and personal tax relief. Expanded support through STR, SARA and BUDI MADANI fuel subsidies offers important cost-of-living relief, while the increase in the minimum wage to RM2,000 strengthens the earnings base for lower-income workers. Together with middle-income tax reductions, higher tax relief limits and stamp duty exemptions, these measures can create greater room for households to manage expenses, build savings and pursue homeownership.

 

We are heartened to see the Education Ministry receive the largest overall allocation of nearly RM69 billion, underscoring the government’s steadfast commitment to investing in our nation's future. At HLB, we share this priority by actively supporting schools and enhancing learning environments through corporate contributions and strategic partnerships. Complementing this, our flagship financial literacy programs HLB DuitSmart and HLB @ School empower students and young Malaysians with essential money management skills, building strong foundations for lifelong financial wellbeing.

 

The Budget’s financing guarantees, tax measures and support for AI and automation can help SMEs improve productivity and reach new markets. Realising these benefits will require financing alongside practical guidance and skills development. HLB will continue to support businesses in making investments that address their needs and strengthen long-term competitiveness.

 

Support for Halal certification can open new opportunities for local enterprises, complemented by stronger capabilities and market access. HLB Islamic’s BizHalal approach supports this wider growth journey, while social finance initiatives such as iTEKAD combine funding with capability building to help underserved entrepreneurs build sustainable livelihoods.

 

As the Malay proverb goes, “Ke bukit sama didaki, ke lurah sama dituruni.” In supporting Belanjawan 2027, we are committed to walk alongside our customers through every phase of growth and challenge, combining tailored financing, advisory, and digital banking solutions to help our customers grow wealth, capture new opportunities and build lasting financial resilience. This is Thoughtful and Responsible banking in practice: delivering grounded solutions that help businesses expand, households plan with confidence, and communities share in Malaysia’s progress.