By M. Saraswathi
KUALA LUMPUR, Oct 8 (Bernama) -- As Malaysians come away exhilarated from Formula One’s return to Sepang after a nine-year absence, it is apt for Budget 2027 to be similarly operationalised in a manner that will create far-reaching tangible spillover benefits, especially as Malaysia turns 70 next year.
The experience surrounding the overwhelming F1-related MADANI ticket sales provides a useful illustration of how large economic activities can create opportunities beyond the headline event itself, prompting huge returns from activities ranging from tourism and hospitality to food sales.
The event drew a record-breaking 261,000 spectators, generating up to RM1.3 billion in overall economic impact for Malaysia, creating opportunities for ordinary Malaysians and local entrepreneurs, including small traders and businesses in a wide range of activities, including motorcycle transport to beat the gridlock traffic jams at Sepang.
Likewise, as Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim tables the Budget at the Dewan Rakyat tomorrow, Malaysians can expect the government to remain focused on one central objective, which is to strengthen their livelihoods and, most importantly, sustain economic growth.
Malaysia's economy expanded by 6.0 per cent in the second quarter of 2026, surpassing the Department of Statistics Malaysia’s (DOSM) advance estimate of 5.8 per cent. Growth in 2026 is projected to remain within the forecast range of 4-5 per cent, with recent developments indicating that overall growth could be around 5 per cent this year.
The economy may be performing well on paper, but the real measure of success is whether people feel the difference in their daily lives through better jobs, higher incomes, manageable living costs and greater economic opportunities.
Malaysia’s strength lies in its strong economic fundamentals, but given the continuing challenges, especially high oil prices and the rising fuel subsidy bill, there is no time for complacency.
It is a fact that despite multiple efforts and layers of initiatives, cost-of-living pressures remain a real concern for Malaysians, as there are challenges beyond the government’s control.
Lest we forget, Malaysia started off 2026 on a high note after successfully hosting ASEAN in 2025, only for it to start scrambling back to the drawing board in February itself as soon as the West Asia crisis hit.
We were faced with a potential fuel shortage, and goods prices skyrocketed.
Thus, the Budget must contain clear policies and, importantly, effective implementation; it must also allow for flexibility to address potential external risks.
What we can be sure of is that people can expect continued efforts to attract foreign investment, but increasingly towards industries that create higher value, better-paying jobs and greater technology transfer.
Malaysia should not compete simply by offering cheap labour. We should move towards higher-value industries where productivity and wages can grow together.
Technology and artificial intelligence (AI) will be increasingly important, but this must be supported by reliable energy, water and digital infrastructure.
For workers, the direction towards higher minimum wages should continue, but with attention to the ability of small and medium enterprises (SMEs) and micro, small and medium enterprises (MSMEs) to cope.
Smaller businesses must be supported through productivity improvements, technology adoption and access to financing so that better wages do not come at the cost of business closures or job losses.
While higher wages can help, they may not directly address the rising cost of living.
This is where subsidies come into play.
While we can expect the government to continue providing subsidies, particularly for fuel, there will likely be further adjustments aimed at supporting those in serious need within any financial system. Additionally, there will be increased efforts to address leakages and reduce wastage.
Where subsidies are rationalised, affordable alternatives must be available so that people are not left facing sudden increases in essential costs.
As continuity from the previous four MADANI government budgets, we can also expect reforms and initiatives to tackle cartels and monopolistic practices that affect consumers.
The goal should be a more competitive market that ultimately gives consumers better choices and fairer prices.
Similarly, people can also expect greater attention to governance and the effectiveness of public spending.
Government-linked entities and major public investments must continue to be reviewed to ensure public resources are generating value. Strong governance is essential, particularly when large sums of public money are involved.
On taxation, whether the discussion involves the Sales and Services Tax (SST) or a hybrid approach with the Goods and Services Tax (GST), the principle should remain the same, which is not to use the tax system simply to place greater pressure on the people.
Any taxation reform must be economically sound, transparent and accompanied by visible improvements in public services.
Ultimately, Malaysians can expect Budget 2027 to be about continuity, stability and sustainable progress.
The government has the opportunity to build on the country’s strong fundamentals while addressing the gaps that people continue to experience.
Economic growth is important. Foreign and domestic investment is important. Fiscal discipline is important.
But the real outcome should be simpler - more jobs, better incomes, affordable living costs, stronger businesses and a better quality of life for Malaysians at large.
That is what economic progress should really mean to the people.
-- BERNAMA