KUALA LUMPUR – Malaysia’s Prime Minister Anwar Ibrahim on Oct 10 proposed a budget of RM470 billion (S$144 billion) for 2026, as the government vowed to pursue further fiscal reforms amid external uncertainties.

The South-east Asian country has maintained steady growth even though its exports have been hit by changes in US tariffs, but it needs to boost revenues to reduce its deficit and pursue the economic development goals

Since taking power in 2022, Mr Anwar has introduced measures to bolster the government’s coffers, including a minimum wage hike, an expanded sales tax and the removing of petrol and diesel subsidies for some segments of the population.

“It is only responsible for the government to carry out these reforms especially at a time when fiscal discipline is critical to navigating rising external risks,” Mr Anwar said in a foreword to the government’s fiscal outlook report.

Mr Anwar in his address to Parliament gave a revised figure for the budget at RM470 billion, up sharply from the RM419.2 billion figure released earlier.

The 2026 spending, up 14 per cent on this year’s revised figure of 412.1 billion ringgit, includes RM338.2 billion or operating expenditure and 81 billion ringgit for development expenditure, and includes investments from state-linked companies and statutory bodies.

The 2026 spending, up 14 per cent on the 2025 revised figure of RM412.1 billion, includes RM338.2 billion for operating expenditure and RM81 billion for development expenditure, and includes investments from state-linked companies and statutory bodies.