KUALA LUMPUR (July 23): Prime Minister Datuk Seri Anwar Ibrahim said on Thursday that the government will continue to put people at the centre of its economic policies under the upcoming Budget 2027, as he argued that economic growth alone will not be the measure of success under his administration.
Anwar, who is also the finance minister, said he remains committed to the principles of a "humane economy" despite the competing demands of preparing the federal budget, which is expected to be tabled in early October.
While the country needs to remain competitive, productive and open to investment, its economic policy should ultimately improve people's quality of life rather than merely deliver stronger headline economic numbers, he said.
Any major policy decision should then be judged by whether it widens opportunities, strengthens families and communities, and treats people as partners in development rather than merely as factors of production, Anwar said.
"The economy is a means, not an end in itself. Its purpose is not merely to produce higher numbers, greater consumption or larger concentrations of wealth, but to enable people to live with dignity, security, purpose and hope," Anwar said in his welcoming remark at the Humane Economy Global Discourse (HEGD) 2026.
"Despite these pressures, I don't lose sight of this fundamental question... The budget, growth, economic policies, semiconductor strategy, energy transition and digital transformation cannot ignore our attempt to restore the moral purpose of governance and development," he said.
Since taking office in late 2022, Anwar's administration has prioritised structural economic reforms, fiscal consolidation and private sector-led investment over launching multiple government-funded mega infrastructure projects, except for its Penang Light Rail Transit project, which remains among the administration's largest public infrastructure commitments.
While acknowledging that fiscal discipline, exports, investment and productivity remain essential to economic management, Anwar said governments should also consider whether innovation creates opportunities or widens inequality.
"No country can be governed on sentiment alone. But what is growth for? What is prosperity worth if it leaves people without dignity? What is innovation worth if it produces greater exclusion?" he said.
He added that economic prosperity should translate into better wages, meaningful employment, affordable housing, accessible healthcare, quality education and stronger communities.
The remarks also come as Malaysia enters the second half of the year after recording stronger-than-expected gross domestic product growth of 5.8% in the second quarter of 2026.
He also called on the government, businesses and citizens to work together to ensure that economic progress benefits society as a whole.
"No society rises merely because it has highways, buildings, technology or financial resources. It rises when it has a serious understanding of justice, knowledge, responsibility and the future," he said.
The HEGD 2026 is a Malaysia-led international platform, dedicated to shifting economic focus away from pure profits and growth towards human well-being, social equality and sustainability.