PM Anwar Says Human-Centred Economy Will Guide Malaysia’s Budget 2027

KUALA LUMPUR, JULY 2026 — The principles of a human-centred economy will be among the Malaysian government’s main considerations when preparing Budget 2027, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who also serves as finance minister, said the government must ensure that national economic growth translates into greater dignity, well-being and opportunities for Malaysians rather than being measured solely through investment, productivity and headline growth figures.

He said the preparation of the federal budget should address a fundamental question about the true purpose of economic development. Economic policies, he explained, should improve people’s quality of life and strengthen society instead of concentrating wealth and benefits among a limited number of groups.

The prime minister said Budget 2027, economic growth policies, the National Semiconductor Strategy, the energy transition and Malaysia’s digital transformation should all remain connected to the moral purpose of governance and development under the Malaysia MADANI framework.

According to Anwar, the concept of a humane economy does not involve rejecting modernisation, entrepreneurship, market activity or technological progress. Instead, it aims to ensure that these developments expand human capabilities without leaving a growing number of people behind.

Malaysia must remain competitive, productive and open to domestic and foreign investment, he said. However, major policy decisions should also be assessed according to whether they widen opportunities, strengthen families and communities, and treat people as active partners in national development.

Anwar said genuine prosperity should be reflected in meaningful employment, affordable housing, accessible healthcare, quality education and stronger social mobility. Economic progress should allow people to live with dignity, security, purpose and hope, rather than merely producing higher consumption or financial figures.

The government’s approach comes as countries face increasingly complex challenges, including climate change, rapid technological development, widening inequality, global poverty and continuing international conflicts. Anwar said these pressures require governments to reconsider how economic development is designed and evaluated.

Budget 2027 is expected to be tabled in Parliament in early October 2026. The government has begun the preparation process, with more intensive formulation work expected as ministries and agencies assess the country’s fiscal priorities for the coming year.

Anwar delivered the remarks while opening the Humane Economy Global Discourse 2026 at the World Trade Centre Kuala Lumpur. The two-day event, themed “Reclaiming Humanity for Shared Prosperity,” brought together more than 750 policymakers, economists, business leaders and academics.

The proposed direction for Budget 2027 signals that the government intends to balance economic competitiveness and fiscal management with social protection and public welfare. Detailed allocations, revenue measures and assistance programmes will only be confirmed when the budget is formally presented.