KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has indicated that Budget 2027 could include broader cost-cutting measures as global economic uncertainties continue to put pressure on the country’s fiscal position.
Anwar, who is also Finance Minister, said geopolitical instability, including tensions stemming from attacks by the United States and its ally Israel on Iran, had affected the global economy and necessitated more prudent government spending, Bernama reported.
“The impact of the attacks has also affected our economy… so do not take lightly or dismiss the new decisions I am making.
“We have indeed asked ministries, including the Ministry of Education and the Ministry of Higher Education, to make appeals… however, there must be reductions within departments because it is impossible that savings cannot be made from the RM20 billion allocation,” he said.
He said this while officiating the Kuala Lumpur International Book Fair 2026 at the World Trade Centre Kuala Lumpur today.
Despite the anticipated spending cuts, the Prime Minister assured that the government would continue prioritising the quality of education and the provision of basic facilities in schools and universities without disruption.
At the same time, Anwar reminded ministries against operating in silos and urged them to better understand broader economic challenges.
He said every sector and ministry played an important role, but priorities must be determined wisely while allocations should be channelled according to actual needs.
“In the current situation, everyone must be rational and wise in understanding the problems and fixing them… take the opportunity to address these weaknesses, improve them… reduce costs where necessary while at the same time setting priorities,” he said. – May 29, 2026