KUALA LUMPUR: Following are the highlights from the Finance Ministry’s Economic Outlook 2026 and Fiscal Outlook and Federal Government Revenue Estimates 2026 reports:
- Malaysia’s 2026 GDP growth is projected to be in a commendable range of 4.0 to 4.5 per cent compared to between 4.0 and 4.8 per cent in 2025.
- The government announces RM419.2 billion Budget 2026, comprising operating expenditure (OE) of RM338.2 billion and development expenditure (DE) of RM81 billion.
- Total revenue collection is estimated to be higher at RM343.1 billion in 2026.
- Overall fiscal deficit is projected to narrow to 3.5 per cent of GDP in 2026 compared to 3.8 per cent in 2025,
- Headline inflation is projected to range between 1.3 per cent and 2.0 per cent in 2026, reflecting a continued environment of price stability and manageable price growth.
- Unemployment rate is anticipated to remain at 3.0 per cent in 2026, total employment to expand by 2.3 per cent to 17.2 million persons.
- Manufacturing sector is projected to remain steady at 3.0 per cent in 2026 compared to 3.8 per cent in 2025, supported by both export- and domestic-oriented industries.
- Services sector is projected to grow by 5.2 per cent in 2026 versus 5.1 per cent in 2025, with all subsectors contributing to the expansion.
- Agriculture sector is projected to grow by 2.2 per cent in 2026 versus 1.2 per cent in 2025.
- Mining and quarrying sector is anticipated to contract by 1.0 per cent in 2026 compared to a 1.1 per cent growth in 2025.
- Construction sector growth is projected to remain steady at 6.1 per cent in 2026 versus 10.1 per cent in 2025.
- Subsidies and social assistance, which constitute 14.5 per cent of OE, is projected to decrease by 14.1 per cent to RM49 billion in 2026.
- Total OE in 2025 is estimated at RM332.1 billion compared with the initial allocation of RM335 billion.
- DE for 2025 is estimated to reduce by 4.8 per cent to RM80 billion, primarily due to lower spending requirements in the economic sector. – BERNAMA
