Jamie Ling, Group Chief Executive Officer, AmBank Group
The Budget 2026 - the first budget under the 13th Malaysia Plan (13MP) – continues with the balanced approach in maintaining fiscal discipline, attracting and promoting new investments from both domestic and foreign investors and driving social upliftment. Over the past three budget cycles, we have seen economic stability and policy certainty, which have benefited the economic sectors and increased investor confidence.
While policy clarity has continued to build confidence, external risks remain elevated. To cushion households, we are encouraged by continued government cash handouts, namely Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), alongside targeted subsidies. These automatic stabilisers will help sustain private consumption amid a challenging external environment.
We laud the Budget 2026’s allocations on High Growth High Value (HGHV) sectors, notably semiconductors, renewable energy, and AI-driven MSMEs, aiming to support the key MADANI-related master plans priorities. These policies are paramount in positioning the economy to reach an RM2 trillion target by 2030.
Budget 2026’s emphasis on the Services sector will benefit from higher digitalisation adoption through automation tax incentive, Islamic finance expansion, and tourism prospects. Meanwhile, initiatives to support high-tech exports through the New Industrial Master Plan (NIMP) Industrial Development Fund, strategic investments by Khazanah and Kumpulan Wang Persaraan (KWAP) in the semiconductor system, alongside targeted financing for high-value activities, will drive the industry towards achieving an RM1 trillion export potential by 2030.
Budget 2026 allocates RM81 billion for development expenditure (DE), representing 18.8% of the RM430 billion allocation under the 13th Malaysia Plan (13MP). We take it as a phased rollout strategy that prioritises fiscal discipline while laying the foundation for high-impact projects. This also suggests a targeted approach to allow for mid-term recalibration amid a challenging external environment.
Corporate Malaysia, particularly large and SME firms, will benefit from Budget 2026’s emphasis on inclusive and green growth, as well as innovation-led development. We at AmBank believe Budget 2026 strikes a commendable balance between securing Malaysia’s economic growth and maintaining fiscal discipline.
