Budget 2026 Aligned With First Year Of 13MP — Anwar
PUTRAJAYA, Aug 7 (Bernama) -- Budget 2026, to be tabled this October, will be aligned with the implementation of the first year of the 13th Malaysia Plan (13MP) to ensure the country’s development trajectory is consistent with the medium-term policy framework introduced earlier.
Prime Minister Datuk Seri Anwar Ibrahim said the upcoming budget would focus on two key aspects: raising the spending ceiling to drive growth and strategic investments, and increasing the priority floor to safeguard the well-being of the rakyat, especially low-income groups.
“We have launched the 13th Malaysia Plan, so Budget 2026 must be in line with its first year of implementation. This rollout must reflect the core objectives of the plan (13MP), which emphasises the need to raise both the ceiling and the floor,” he told reporters after attending the Budget 2026 Engagement Session today.
According to the parliamentary calendar, Budget 2026 is scheduled to be tabled in the Dewan Rakyat on Oct 10.
Raising the ceiling refers to enhancing the country’s potential and competitiveness through investments in innovation, technology and talent development, while raising the floor means strengthening the delivery of essential public services such as education and healthcare to ensure no one is left behind.
Anwar said raising the ceiling strategy would continue to spur investment and economic growth, while the floor approach would guarantee improved access to basic services like education, healthcare and a minimum income, in line with the government’s reform agenda.
The approach is among the core strategies under the MADANI Economic Framework, aimed at fostering balanced and inclusive national development.
“If we talk only about growth and investment without considering the floor, it becomes problematic. Prices are not coming down. So there must be an upward adjustment — and if wages rise proportionately or higher, the pressure of living costs, as felt by some of our people, will ease,” he said.
On tariffs imposed on Malaysian exports to the United States, the Prime Minister welcomed the reduction to 19 per cent, although some terms of the agreement remain non-negotiable.
“At least we managed to secure 19 per cent. The terms are still more favourable than those for some other countries. I believe our role in helping to resolve the Cambodia–Thailand conflict may have softened their stance towards us,” he said.
Anwar also voiced concern over tariffs on semiconductors affecting several companies, but noted that most major Malaysian industry players already have investment commitments and operations in the US.
“For example, Infineon — I’m not certain if they operate in the US, but they’re a major German company serving Europe and other markets. We are monitoring the situation,” he said.
Anwar also stressed the importance of active participation by private firms and government-linked investment companies (GLICs) in community outreach initiatives, including the 'Kampung Angkat Madani', 'Sekolah Angkat', and 'Sejahtera Madani' programmes.
“To date, 1,000 schools have been identified under the 'Sekolah Angkat' initiative. We’ve also proposed that each Felda settlement, traditional village and urban poor area receive an allocation of RM100,000 under 'Sejahtera Madani',” he said.
This approach, he added, would empower local communities to decide how best to allocate the funds based on their specific needs, including the use of technologies such as drones.
-- BERNAMA