Malaysia budget: Anwar to boost welfare, keep subsidies amid inflation worries
Por Joseph Sipalan — South China Morning Post – News feed
Advertisement Malaysia This Week in Asia Economics Malaysia budget: Anwar to boost welfare, keep subsidies amid inflation worries
The US$112.5 billion budget comes as the Malaysian leader faces pressure to hold an early general election after several state poll defeats
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Joseph Sipalan in Kuala Lumpur Published: 3:31pm, 9 Oct 2026 Malaysia ’s government will boost spending on social welfare while maintaining subsidies to rein in the cost of living under its 2027 Budget unveiled on Friday, as Prime Minister Anwar Ibrahim seeks to shore up public support while under pressure to call for an early general election. Anwar’s Pakatan Harapan (PH) has suffered bruising defeats in a series of state elections since December, as voters expressed disapproval of his administration’s failure to deliver on promises of reforms, which had helped the ruling coalition to secure the largest share of parliamentary seats in the 2022 polls. Malaysia’s next general election is due by February 2028. He faces the prospect of presenting possibly the last budget of his term, as his federal partner but state electoral rival Umno demands immediate snap polls, emboldened by its decisive victories over PH in the recent Johor and Negeri Sembilan elections. Select Voice Select Speed 0.8x 0.9x 1.0x 1.1x 1.2x 1.5x 1.75x 00:00 00:00 1x AI-generated voice