Rising global oil prices will not derail Malaysia’s development plans under the 2027 Budget, Economy Minister Akmal Nasir said today.
He said development expenditure for next year would proceed as planned, although the government would need to manage the impact of higher oil prices on fuel subsidies and the country’s fiscal position.
“The ministry has received a commitment that development funding will continue next year,” Bernama quoted him as saying after the ministry’s monthly assembly in Putrajaya.
Akmal said managing oil prices was an immediate concern, but the government must ensure longer-term development commitments were maintained.
He added that global oil prices remained highly uncertain amid volatility in energy markets, particularly following geopolitical developments in West Asia.
According to a Bernama report, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Brent crude prices had fallen 3.4% to US$100.34 a barrel after satellite data showed Saudi Arabia had redirected more of its oil exports through the Strait of Hormuz following the shutdown of the East-West pipeline.
Saudi Arabia’s crude exports through the Strait of Hormuz rose to around 2.9 million barrels per day, compared with approximately 700,000 barrels per day in August.
Prime Minister Anwar Ibrahim said in July that the government expected to spend nearly RM40 billion on fuel subsidies in 2026 amid the global energy crisis, more than double the RM15 billion initially allocated under the 2026 Budget.
Progressive Wage Policy To Be Reviewed
Akmal also said the government would conduct a comprehensive assessment of the progressive wage policy by the end of this year or early next year to determine how effectively it has helped raise workers’ wages.
The policy is currently being implemented and is scheduled to run until the end of 2027. The assessment will help determine the government’s next steps, he said.
Akmal stressed that the policy should not focus solely on incentives for higher wages, but must also be supported by improvements in productivity, training and workers’ skills.
He also pointed to continued growth in real wages despite
