The federal government expects the dividend from Petroliam Nasional Bhd (PETRONAS) to rise to RM32 billion in 2027, according to the Finance Ministry's Fiscal Outlook and Federal Government Revenue Estimates Report.

RM32 bil PETRONAS dividend expected in 2027, matching 2024, 2025 payouts

KUALA LUMPUR (Oct 9): Malaysia's fiscal deficit is projected to narrow to 3.3% of gross domestic product (GDP) in 2027, even as the actual shortfall remains elevated at RM77.5 billion.

Malaysia's fiscal deficit to narrow to 3.3% in 2027, but shortfall remains above RM77 bil

Malaysia’s economy is forecasted to moderate to between 4.2% and 5.2% in 2027 amid softer domestic demand and easing of growth in most sectors, according to the Ministry of Finance’s Economic Outlook 2027 report.

Malaysia’s economy to moderate to 4.2%-5.2% in 2027 amid softer demand, easing sector growth

Malaysia is expected to spend 82% of its forecasted record RM459.84 billion budget on operating expenditure (opex) in 2027, leaving RM83 billion, or 18%, for development expenditure (devex).

Budget 2027 expected to hit record RM459.84b, 82% for operating expenditure

Despite raising the minimum wage and the economy's recovery since the pandemic, wage progression remains weak beyond the minimum wage floor, according to the Economic Outlook 2027 report.

Minimum wage lifts the floor, but Malaysia's 'missing middle' remains

The government has called for structured annual wage progression framework that could give workers clearer pathways for pay advancement based on experience, skills, competency, responsibilities and  productivity.

Govt floats annual wage progression framework, sectoral wage floors

Malaysia is expected to pay RM61.01 billion in 2027 to service its debts, up 6.5% from an estimated RM57.3 billion in 2026, according to the Ministry of Finance's (MOF) 2027 Fiscal Outlook and Federal Government Revenue Estimates report.

Malaysia's debt service bill to hit RM61b in 2027, eating up 16% of govt revenue

The federal government is again trimming its development expenditure (devex) allocation for the education and training subsector, even as more resources are being set aside to accommodate the two-cohort Year One intake system.

Govt to cut development spending for education, training again

Malaysia expects full employment to continue into next year as robust domestic economic activity will cushion geopolitical and trade headwinds.

Malaysia expects full employment in 2027, fewer low-skilled foreign workers

The federal government's allocation for grants to statutory bodies is expected to increase by 13.7% to RM17.09 billion in 2027, compared with RM15.04 billion in 2026, according to the Ministry of Finance (MOF).

Grants to statutory bodies to rise 14% to RM17.1 bil in 2027

KUALA LUMPUR (Oct 9): Malaysia's labour income share is expected to hold broadly steady in 2027, with compensation of employees (CE) projected at 34.2% of gross domestic product (GDP), according to the Ministry of Finance's Economic Outlook 2027 report.
The figure is up slightly from an estimated 34% in 2026.

Wages still trail growth as labour income share to GDP holds steady in 2027

The government is stepping up efforts to improve tax revenue efficiency through greater digitalisation, a broader tax base and stronger compliance, as it seeks to reduce revenue leakages and make tax collection more effective.

Government steps up tax reforms to strengthen revenue mobilisation

The federal government is on track to transition to a defined contribution mechanism to manage its growing pension liabilities, as retirement charges are projected to rise to RM44.6 billion in 2027 from RM42.8 billion in 2026, according to the latest Fiscal Outlook and Federal Government Revenue Estimates report.

Govt says it is on track for pension reform as retirement charges expected to swell to RM44.6 bil in 2027

Malaysia is increasingly reliant on indirect tax, especially sales and services tax, to fill the tightening state treasury.

Malaysia increasingly reliant on sales-and-services tax for govt revenue

EdgeUP: AI vs AI: Cybersecurity Arms Race

The affordable Medi Asas plan will be launched in January 2027, featuring standardised hospital charges based on diagnosis and treatment type to ensure medical costs are better controlled and predictable, says Prime Minister Datuk Seri Anwar Ibrahim.

Affordable Medi Asas plan to be launched in January 2027 — Anwar

Indonesia's palm oil production next year is expected to be affected by El Niño dry weather, while exports are estimated to drop nearly 15% amid higher domestic demand, palm oil group Gapki said on Friday.

Indonesia's 2027 palm oil output, exports seen shrinking due to dry weather, domestic demand 

Micro, small and medium enterprises will get a one-percentage-point reduction in income tax rates next year to cope with rising costs of doing business.

SME income tax rates cut by one percentage-point

Some 40,000 KTM Komuter users stand to benefit from the MYKOMUTER50 incentive next year, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar said the initiative would save users up to RM160 a month, while free passes would also be given to 360,000 schoolchildren, the disabled community and children under six. The My50 facility will continue for Prasarana bus and rail users in the Klang Valley.

MYKOMUTER50, free passes and ECRL Phase 1 in major transport boost

The government has agreed to amend the Road Transport Act 1987 to compel drivers who cause accidents while under the influence of alcohol or drugs to compensate victims.

Drunk, drug-impaired drivers to be made to compensate victims, says PM

Prime Minister Datuk Seri Anwar Ibrahim announced that the value of government procurement allocated to Bumiputera G1-G4 contractors will be increased to RM7.5 billion by 2027, compared to RM4 billion this year.

Procurement value for Bumiputera G1-G4 contractors increases to RM7.5 bil — Anwar

The government will provide 50 acres of strategically located land in Kuala Lumpur, valued at RM1 billion, as a new endowment to the Bumiputera Investment Foundation, Prime Minister Datuk Seri Anwar Ibrahim said.

Govt to provide 50 acres of KL land worth RM1 bil for Bumiputera agenda

The government has extended the income tax exemption for Malaysian shipping companies by a decade and introduced fixed stamp duty rates for loans to buy or build ships.

Tax holiday for Malaysian shippers extended to 2036, fixed stamp duty on ship loans

The allocation for repairing and maintaining all types of schools has been doubled from RM1 billion to RM2 billion under Budget 2027.

Allocation for school repairs, maintenance doubled to RM2b under Budget 2027

Follow our live coverage of Budget 2027 as Prime Minister Datuk Seri Anwar Ibrahim tables it.

Highlights of Budget 2027

KUALA LUMPUR (Oct 8): Klang member of Parliament (MP) V Ganabatirau has filed a defamation suit at the High Court here against independent preacher and activist Firdaus Wong over social media postings questioning the lawmaker's loyalty to the country.

Klang MP Ganabatirau sues Firdaus Wong over social media posts questioning his loyalty to Malaysia

The government on Thursday has announced key individual tax reforms aimed at reducing the cost of living for the middle 40% of earners (M40).&nbsp;

Income tax relief level raised to RM12,000, tax rate cuts to put RM1,600 into pockets of people 

KUALA LUMPUR (Oct 9): A former company director of a property development company has been charged with criminal breach of trust (CBT) for transferring RM100,000 of company funds to himself for a non-existent "director fee".

Former property development company director charged with CBT for transferring RM100k to himself for non-existing 'director fee'

首相拿督斯里安华提呈2027年财政预算案重点摘要：

2027年财政预算案重点摘要

KUALA LUMPUR (Oct 9): Dagang NeXchange Bhd (KL:DNEX) could see renewed investor interest after settling its long-running legal dispute over semiconductor subsidiary SilTerra Malaysia Sdn Bhd, removing a major uncertainty that has weighed on the stock, according to TA Securities.

DNeX's SilTerra legal settlement clears path for growth, says TA Securities

Oriental Kopi Holdings Bhd (KL:KOPI) could see its share price rise by more than 50%, according to CGS International Securities (CGSI), which expects the cafe operator's expansion and growing packaged food business to drive stronger earnings over the next few years.

CGSI sees over 50% upside for Oriental Kopi on expansion, earnings growth

Malaysia is expected to spend 82% of its forecasted record RM459.84 billion budget on operating expenditure (opex) in 2027, leaving RM83 billion, or 18%, for development expenditure (devex).

Oil declined after President Donald Trump said the US would not attack Iran before November’s midterm elections, signalling a period of more than three weeks for no offensive military action against Tehran.

Oil retreats as Trump rules out attacks on Iran before US midterms

World stocks edged up on Friday and oil prices slipped after US President Donald Trump said the US would not attack Iran before next month's midterm elections, easing some near-term concerns about energy supplies.

Oil eases, bringing some respite to stocks and battered bonds

The worsening haze in Malaysia could disrupt manufacturing operations, affect worker attendance and drive up business costs, according to the Federation of Malaysian Manufacturing (FMM).

Haze threatens manufacturing productivity, raises business costs — FMM

Despite raising the minimum wage and the economy's recovery since the pandemic, wage progression remains weak beyond the minimum wage floor, according to the Economic Outlook 2027 report. 
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Malaysia is proposing a full stamp duty exemption on loan agreements and instruments of transfer for the purchase of first&nbsp;homes priced up to RM500,000.

Govt proposes full stamp duty exemption for first homes priced up to RM500,000

Unisem (M) Bhd (KL:UNISEM) and its subsidiary plans to invest RM396 million to expand its semiconductor manufacturing plant in Gopeng, Perak, as the group seeks to capture growing demand for advanced chip packaging used in artificial intelligence (AI) and data centres..

Unisem plans RM396 mil second phase of Gopeng plant expansion

A selloff in chipmakers weighed on stocks as speculation around OpenAI’s revenue revived worries that the artificial-intelligence spending spree is becoming harder to justify.

S&P 500 falls as reports on OpenAI sink chipmakers

Singapore’s Formula 1 race will go ahead this weekend despite haze from Indonesian wildfires that has choked the city for weeks, pushing it to the top of the global rankings for air pollution. 
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F1 says Singapore race will go ahead despite Indonesia haze

KUALA LUMPUR (Oct 9): Malaysia's fiscal deficit is projected to narrow to 3.3% of gross domestic product (GDP) in 2027, even as the actual shortfall remains elevated at RM77.5 billion.

PMB Technology Bhd (KL:PMBTECH), a 58.78%-owned subsidiary of Press Metal Aluminium Holdings Bhd (KL:PMETAL), plans to invest RM650 million to build a silicon-aluminium (Si-Al) alloy plant in Sarawak as the group seeks to diversify away from a struggling silicon metal business.

PMB Technology plans RM650 mil silicon-aluminium alloy plant in Sarawak

BENGALURU (Oct 8): OpenAI has told investors its annualised revenue for September was almost US$50 billion, a drop from what it signaled earlier, a person familiar with the matter told Reuters on Thursday.

OpenAI's September annualised revenue nears US$50 bil, less than previously indicated — Reuters

The collapse of Nvidia-backed data centre operator Firmus' US$5 billion IPO is a blow to Australia's capital markets which are already facing a shrinking pool of listed entities, investors said.

Australia's benchmark share index is heavily skewed to the Big Four banks and huge mining companies, so some money managers had hoped a big tech listing would make the market more attractive by offering more choice to investors.

Economic Report 2026/2027

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Economic Report 2026/2027

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