PUTRAJAYA: Malaysia's economic reforms, reinforced by Budget 2027, have enabled the country to sustain growth and narrow its fiscal deficit despite global economic pressures, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar said rising global oil prices had driven up living costs in many countries, particularly in Europe, where difficulties in meeting basic needs had sparked public unrest.
"The haze is in the air, but the Budget is not hazy. The problem is that people have not read it. If they read it, the figures and data are clear and have been prepared very carefully.
"When economic conditions deteriorate, the fiscal deficit normally cannot be reduced. But we have managed to do so because of our economic management," he said at the Finance Ministry's monthly assembly here today.
Anwar, who is finance minister, said economic uncertainties in Indonesia had temporarily affected several stock market counters, particularly companies with significant investments in the country.
He said the Madani economic framework sought to balance stronger investment, technological advancement and economic growth with efforts to address the everyday challenges faced by Malaysians.
"Growth must be vigorous, investment must be high and technology must drive us to new heights, but we must remain grounded in the realities faced by padi farmers in Kedah, coastal fishermen in Perak, workers earning too little, high rents and rising prices of onions imported from India," he said.
Anwar said development expenditure for relatively poorer states continued to increase, particularly to address flood mitigation, poverty and basic infrastructure needs.
He said this reflected the government's commitment to economic equity under the Wa'ad Nasional, or national pledge, which emphasised leaders' responsibility to govern fairly and safeguard the people's welfare.
He added that allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) programmes had increased from RM8 billion to RM15 billion to strengthen financial assistance for Malaysians.
However, Anwar acknowledged that these measures had yet to resolve all the country's economic challenges.
"People should not imagine that this means all problems have been solved. To me, this is a continuation of meaningful efforts towards resolving them," he said.
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