Budget won’t resolve economic woes, but govt will help cushion financial pressure

Prime Minister Anwar Ibrahim tonight admitted that all the country’s economic woes would not be resolved by the 2027 budget estimates tabled yesterday.

However, he said the government will focus on cushioning the impact of rising prices of goods and certain services on the public.

Savings made from curbing leakages and better governance will be redirected to the people, Anwar said in a special interview on the budget broadcast today, Bernama reported.

He cited the increase in cost of imported phosphate fertiliser due to the closure of the Hormuz Strait in the wake of the US-led war against Iran, as an example.

Anwar said while fluctuations in commodity prices, logistics costs, and disruptions in international supply chains were beyond the government’s control, Putrajaya could help reduce the financial pressure.

One such way is by streamlining the supply chain, expanding farmers’ markets, and increasing sales of goods through the Federal Agricultural Marketing Authority, he said.

Anwar said a stronger fiscal position could be achieved via more disciplined financial management, enabling the government to provide assistance such as sports shoes for schoolchildren, as well as allowances and minimum income support for rubber smallholders and paddy farmers.

“This can all be achieved if we manage finances well and ensure that government expenditure truly reaches the targeted groups,” he was quoted as saying.

Anwar also said initiatives outlined in the 2027 budget were aimed at ensuring a better quality of life for the people, while taking into account the challenges the public endured.

“The economy may be thriving, but the people may still be burdened. We take a more holistic approach and that is essentially what a budget is (about).”

He said the 2027 budget not only focussed on significant matters such as spurring economic growth, but also extended to issues such as the welfare of gig workers, welfare of pets and minimum wage.

The federal budget estimates provide for a total expenditure of RM460 billion, an increase of RM40 billion from the 2026 estimates.

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