29/05/2026
ANWAR SIGNALS LEANER 2027 BUDGETHAKIM MAHARI AND HUSNINA NABIHAH KUALA LUMPUR [email protected]
New Straits Times
30 May 2026
Ministries must look for cost savings and understand country’s economic challenges, says PM
PRIME Minister Datuk Seri Anwar Ibrahim has hinted at a leaner 2027 Budget as Middle East tensions strain economies worldwide. Anwar said although Malaysia’s economy was not spared, infrastructure at schools and universities would remain a priority.
“Malaysia recorded encouraging progress in the first quarter of this year, among the best in Asean and Asia. However, the conflict and instability in the Gulf have also affected our economy.
“When I ask for new decisions, ministries must understand that there has to be some reduction in expenditure.
“It is impossible that nothing can be saved from a RM20 billion allocation.
“There are many areas where costs can be reduced,” he said in his speech at the launch of the Kuala Lumpur International Book Fair here yesterday.
Anwar, who is also finance minister, said the government had asked ministries, including the
Education Ministry and Higher Education Ministry, to review spending and identify cost-cutting measures.
He said ministries must avoid operating in silos and understand the country’s macroeconomic challenges.
“Every sector is important — unity, culture, sports, science and technology — but there must be wisdom in determining priorities and understanding the bigger economic picture.”
Anwar said the current economic climate demands prudent spending, better management of weaknesses and stronger prioritisation.
“Everyone must be rational and wise. Understand the problems, make improvements, address
weaknesses and reduce costs where necessary while determining priorities.”
Anwar’s remarks come after a Finance Ministry April 29 directive for ministries to cut costs.
Meanwhile, Anwar also announced that public secondary school and university students will each receive RM100 book vouchers under the Madani Book Voucher programme.
The vouchers, he said, could be used at the Kuala Lumpur International Book Fair as part of efforts to encourage reading and strengthen knowledge development among Malaysians.
Anwar urged parents to make full use of the book vouchers and ensure the books are read and not merely left on shelves.
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