BANGI, Sept 4 (Bernama) -- The Malaysian Islamic Chamber of Commerce (DPIM) has expressed hope that Budget 2027, to be tabled next month, will place greater emphasis on development spending than operating expenditure to spur economic growth and strengthen the country's resilience in an uncertain economic environment.
Its president, Datuk Mohammad Sahar Mat Din, said a larger allocation for development is important to ensure that government spending has a more significant impact on economic activity and to create opportunities for the business community.
“We hope this year's Budget will provide a larger allocation for development. More than 50 per cent of the Budget is spent on operating costs each year. If possible, development spending should be increased this year, particularly for projects that can stimulate economic growth,” he told Bernama when met here today.
Under Budget 2026, the government allocated RM419.2 billion, of which RM338.2 billion, or about 81 per cent, went towards operating expenditure, while RM81 billion, or about 19 per cent, was allocated for development spending.
Mohammad Sahar called for more business-friendly tax policies, alongside greater government efficiency and streamlined administration, to reduce the business community's operating overhead.
He said lengthy delays in obtaining government approvals, particularly for land development projects, have also increased companies’ operating costs.
“Through this Budget initiative, the government could consider increasing digitalisation in processes involving approvals across various areas, including development approvals,” he said.
He noted that another challenge facing entrepreneurs is finding markets for their products and services and securing projects that can stimulate business activity.
He said the government should place greater focus on spending that stimulates economic activity to ensure its efforts to promote growth benefit the business community more widely.
“The priority now is to drive economic growth amid the current uncertainty. Strengthening and stimulating the economy must remain a key focus,” he said.
Mohammad Sahar also urged faster government payments to contractors, saying delays can affect companies’ cash flow, while expressing hope that Budget 2027 will create a more efficient and conducive business environment for about 3,000 DPIM member companies across various sectors.
-- BERNAMA