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Budget 2027 is set to be tabled this Friday and expected to be the last budget before the next general election.
Political analysts believe the Madani government would use the country’s biggest annual fiscal policy announcement to address cost-of-living concerns and potentially shore up public support.
Former World Bank and United Nations senior official Lim Teck Ghee said it was unsurprising for governments and political parties in power to use the budget to garner political support, particularly as the next general election approaches.
The independent analyst said Prime Minister Datuk Seri Anwar Ibrahim could be expected to introduce populist measures aimed at winning over voters, including further assistance through programmes such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
Lim also pointed to the Budi95 scheme, which he said had allowed the government to soften the political impact of its move towards targeted fuel subsidies.
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The scheme benefits 14 million active users, while the basic monthly eligibility was restored to 300 litres from Sept 1 following concerns over cost-of-living pressures.
“Obviously, all political parties in power can be expected to use the budget to canvass for political support,” he said.
He explained that the administration had used the savings from reducing blanket fuel subsidies to provide targeted transport and fuel aid to eligible citizens. This helped cushion the impact of the subsidy cuts while giving the country a buffer against global energy shocks.
While the administration has pushed for fiscal consolidation by rationalizing blanket fuel subsidies, it has softened the political blow by converting those savings into targeted transport and fuel assistance for eligible citizens, preserving a buffer against global energy shocks. But equally important for the nation are the long overdue economic reform issues that earlier appeared in Pakatan election manifesto and how they are being dealt with or have they completely disappeared.
Former World Bank and United Nations senior official Lim Teck Ghee.
Meanwhile, International Islamic University Malaysia political analyst and ISEAS–Yusof Ishak Institute fellow Associate Professor Dr Syaza Shukri said Budget 2027 was likely to contain measures aimed at winning back public support for PH.
She said the government would need to address the rising cost of living, which has been cited as a reason for PH’s electoral setbacks, regardless of whether that perception is accurate.
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She added that such measures could attract criticism from PH supporters, but said that the government could offset this by pushing institutional reforms during the current sitting.
Yes I think it would definitely be a ‘gula-gula’ [election sweetner] budget as a way to try to win votes back to PH. And they need to because cost of living has been said to be the reason for PH to lose the elections, true or not. So the government need to address that. This might attract criticism especially by their supporters, but I think they would offset it, or should, by pushing institutional reforms this sitting.
International Islamic University Malaysia political analyst and ISEAS–Yusof Ishak Institute fellow Associate Professor Dr Syaza Shukri.
Syaza’s assessment comes as the government prepares to table the fifth Madani Budget, with the Finance Ministry saying Budget 2027 will focus on protecting households from cost-of-living pressures while continuing the government’s reform agenda.
The Budget is scheduled to be tabled by the Prime Minister in the Dewan Rakyat at 3.30pm on Friday.
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