PM Anwar Signals Greater Emphasis On Cost Savings In Budget 2027

KUALA LUMPUR, May 29 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has hinted that Budget 2027 will be crafted with greater emphasis on cost-saving measures amid mounting global economic pressures affecting the country’s fiscal position.

Anwar, who is also Finance Minister, said global geopolitical uncertainties, including tensions stemming from attacks by the United States and its ally Israel on Iran, have affected the global economy and necessitated more prudent government spending.

“The impact of those attacks has also affected our economy, so do not take lightly or dismiss the new decisions that I make.

“And yes, ministries, including the Ministry of Education and the Ministry of Higher Education, have appealed (against the cuts), but there must be reductions within departments because it is impossible that savings cannot be found from RM20 billion,” he said.

He said this when officiating at the Kuala Lumpur International Book Fair (PBAKL) 2026 here today.

However, Anwar said the government would continue to prioritise the quality of education and the provision of basic facilities in schools and universities despite any reduction in allocations.

At the same time, he reminded ministries against working in silos and urged them to understand broader economic challenges from a macroeconomic perspective.

He said every sector and ministry plays an important role, but priorities must be set wisely by channelling allocations according to actual needs.

“In the current situation, everyone must be sensible and wise enough to understand the problems and address them.

“Take the opportunity to rectify these weaknesses, reduce costs where necessary and, at the same time, determine the right priorities,” he said.

-- BERNAMA