Highlights From Economic & Fiscal Outlook 2026 Reports
KUALA LUMPUR, Oct 10 (Bernama) -- 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 pct compared to between 4.0 and 4.8 pct in 2025
* The government announces RM419.2 bln Budget 2026, comprising operating expenditure (OE) of RM338.2 bln and development expenditure (DE) of RM81 bln
* Total revenue collection is estimated to be higher at RM343.1 bln in 2026
* Overall fiscal deficit is projected to narrow to 3.5 pct of GDP in 2026 compared to 3.8 pct in 2025
* Headline inflation is projected to range between 1.3 pct and 2.0 pct in 2026, reflecting a continued environment of price stability and manageable price growth
* Unemployment rate is anticipated to remain at 3.0 pct in 2026, total employment to expand by 2.3 pct to 17.2 million persons
* Manufacturing sector is projected to remain steady at 3.0 pct in 2026 compared to 3.8 pct in 2025, supported by both export- and domestic-oriented industries
* Services sector is projected to grow by 5.2 pct in 2026 versus 5.1 pct in 2025, with all subsectors contributing to the expansion
* Agriculture sector is projected to grow by 2.2 pct in 2026 versus 1.2 pct in 2025
* Mining and quarrying sector is anticipated to contract by 1.0 pct in 2026 compared to a 1.1 pct growth in 2025
* Construction sector growth is projected to remain steady at 6.1 pct in 2026 versus 10.1 pct in 2025
* Subsidies and social assistance, which constitute 14.5 per cent of OE, is projected to decrease by 14.1 pct cent to RM49 bln in 2026
* Total OE in 2025 is estimated at RM332.1 bln compared with the initial allocation of RM335 bln
* DE for 2025 is estimated to reduce by 4.8 pct to RM80 bln, primarily due to lower spending requirements in the economic sector
-- BERNAMA