Soundbytes I Like to Hear Coming from Budget 2027

There has been much talk about taking Budget 2027 to the ground, listening to different groups and understanding their concerns before the Budget is finalised.

I welcome the sentiment, although consultation with industry, businesses and the public before a Budget is hardly a new practice. Governments have always needed to hear from those who will ultimately be affected by their policies.

What interests me more is what we hear when the Budget is finally delivered.

Budget speeches are inevitably filled with economic terminology. Fiscal consolidation. Productivity. Competitiveness. Targeted subsidies. Structural reform. High-value investment. Human capital. All are important. But most Malaysians are not economists. 

A family is more likely to think about the grocery bill, petrol, rent, school expenses and medical costs. A young graduate is thinking about getting a decent first job. A small trader is thinking about whether there will be enough customers next month. An SME is thinking about wages, electricity, financing, compliance and whether it can remain competitive.

Economic policy may be complicated. The aspiration behind it does not have to be. So, if I were to make a personal wishlist of the soundbytes I would like to hear coming from Budget 2027, these would be among them.

Why Anwar's 52% approval rating does not make PH popular with voters?

 

There is a curious contradiction in Malaysian politics today. A Merdeka Center survey put Prime Minister Anwar Ibrahim's approval rating at 52 per cent — still relatively respectable and the highest among the political leaders tested. 

Yet Pakatan Harapan does not look like a popular political force. Its performance in recent state elections and by-elections has been disappointing, and there is already widespread speculation that PH could face another difficult contest in Melaka.

So how can a Prime Minister remain relatively popular while the coalition behind him appears increasingly vulnerable?

Asking Scott Bessent: Can Malaysia Grow Its Way Out of Debt—and Into Greater Prosperity?

When US Treasury Secretary Scott Bessent was asked about America’s national debt crossing the astonishing US$40 trillion mark, his response was strikingly simple: 

“There’s nothing magic about the $40 trillion number… we can grow our way out of that.” 

He subsequently argued that global economic growth is the way to deal with the mountain of debt. It is an interesting proposition, particularly for Malaysia.

America’s debt has now exceeded 120% of its GDP, while Malaysia’s federal government debt remains below 65% of GDP. The comparison should not be taken too literally because the two economies, currencies, financial markets and debt structures are very different. 

Nevertheless, Bessent’s argument raises a question Malaysia should be asking itself. Can stronger economic growth make the task of managing and eventually reducing our debt burden easier?

The answer is yes—but only partly.

Amanat Perdana: The Fiscal Test

The Amanat Perdana Hari Kebangsaan delivered by Prime Minister Anwar Ibrahim was, in many ways, a political acknowledgement that economic progress cannot be measured merely by GDP growth, investment numbers or fiscal statistics. It must also be felt in the daily lives of ordinary Malaysians.

The decision to restore the BUDI95 monthly quota from 200 litres to 300 litres is perhaps the clearest example. More than 16 million Malaysians will again have access to subsidised RON95 up to the higher ceiling, while eligible diesel pickup and jeep owners can receive up to 400 litres. The Government says the decision was made after months of monitoring and was supported by better supply management, stronger enforcement, a resilient economy and improved fiscal capacity.

Critics have pointed to the apparent inconsistency with earlier statements that only about 1% of users would be affected by the reduction. But this criticism misses an important distinction. A policy can be technically defensible when introduced and subsequently revised when evidence shows that circumstances have changed. Governments should not be prisoners of yesterday's policy.

The same flexibility can be seen in e-Invoicing. The threshold has progressively moved upwards, and the latest decision exempts businesses with annual sales below RM3 million. More than 1.1 million businesses are expected to benefit. This is not necessarily a retreat from tax administration reform. It can equally be interpreted as recognition that compliance costs can be disproportionately burdensome for smaller enterprises.

The Amanat Perdana therefore demonstrates a government prepared to listen.

Beyond the 70%: Why Malaysia Needs a Different Economic Conversation

 

Dr Suraya Ismail of the Khazanah Research Institute (KRI) recently made a thought-provoking observation that about 70% of Malaysian households do not appear to benefit meaningfully from the wealth generated by the nation. 

The figure deserves careful qualification and should not be interpreted as saying that 70% of households are poor or receive no benefit whatsoever from economic growth. Nevertheless, the broader message is difficult to ignore: there can be a substantial gap between what the economic statistics say and what households actually feel.

This gap matters because economic management is not only about producing good numbers. It is also about communicating honestly what those numbers mean to ordinary people.

US Debt Hit US$40 Trillion: A Lesson for Malaysia

 

The United States has crossed a fiscal milestone that would have seemed almost unimaginable a decade ago. On 18 August 2026, total US national debt reached US$40.047 trillion, according to the US Treasury. The debt has more than doubled from approximately US$19.95 trillion in January 2017. 

The significance of US$40 trillion is not the number itself. The bigger question is whether the American economy and government revenues can grow sufficiently to service the debt without requiring progressively larger borrowing. That is the real fiscal test—and it is a question Malaysia should take seriously.

The US experience is therefore not a warning that Malaysia is about to face an American-style debt crisis. It is a warning about how a manageable fiscal problem can become politically and economically difficult to correct if structural deficits are allowed to persist for too long.

Who Deserves the Political Credit for Johor's Economic Success?

 

As Johor heads into another state election, one familiar campaign theme has once again taken centre stage: the economy. 

Political parties routinely claim that economic growth, investment inflows, rising exports or employment opportunities are proof that voters should reward them with another mandate. Conversely, opponents argue that economic challenges such as inflation, the cost of living or a weaker currency demonstrate the incumbent's failure.

Yet beneath these familiar campaign narratives lies an important irony. In reality, it is often difficult—if not impossible—to attribute economic success or failure solely to any particular political party.

Johor presents perhaps the clearest example of this complexity.