The Economy Ministry has proposed a RM58 billion development expenditure (DE) allocation for 2027 to ensure Malaysia’s long-term development agenda continues on a sustainable path.
Economy Minister Akmal Nasrullah Mohd Nasir said the figure is the ministry’s preliminary proposal and will be submitted to the Ministry of Finance (MOF) for consideration during the preparation of the 2027 Budget.
Of the proposed allocation, around 70 per cent will be channelled towards core development projects to ensure the continued implementation, maintenance and completion of the country’s key infrastructure and development initiatives.
Akmal explained that government spending is divided into two main categories: operating expenditure (OPEX) and development expenditure (DE). He said the government intends to maintain its existing formula, with the majority of development spending focused on essential national development.
“Our aim is to ensure that 70 per cent of the total development expenditure continues to be allocated to core development projects,” he told reporters after the Economy Ministry’s monthly assembly on Monday.
He said the ministry’s top leadership is currently finalising its 2027 development plans before submitting the proposal to the MOF, which will review the recommendations as part of the Budget 2027 preparation process.
Commenting on global oil price assumptions for next year’s budget, Akmal said the matter is being considered but stressed that forecasting oil prices falls under the MOF’s responsibility.
He added that the Economy Ministry’s priority remains ensuring sufficient development spending to support Malaysia’s long-term growth, while fiscal planning, including oil price projections, will ultimately be determined by the Ministry of Finance.
