Malaysia Budget 2027 to Focus on AI, Cost of Living and Youth Job Security

Malaysia Budget 2027 is expected to put stronger attention on artificial intelligence, cost-of-living pressures, economic resilience and the future of young Malaysian workers as the government prepares to table the national budget on 9 October 2026.

Deputy Finance Minister Liew Chin Tong said Malaysia needs to respond to an increasingly challenging global environment while also taking advantage of opportunities created by the rapid development of AI.

The Ministry of Finance has already released its Pre-Budget Statement outlining 10 focus areas for Budget 2027.

Cost of Living Remains a Major Priority

The government has identified household living costs as one of the central issues for the upcoming budget.

According to the Finance Ministry, Budget 2027 will examine pressures involving:

• Food prices
• Housing and rental costs
• Transport
• Healthcare
• Education
• Childcare

The government also plans to continue improving targeted assistance and subsidies while protecting the purchasing power of vulnerable households through programmes such as STR, SARA and BUDI MADANI.

[Malaysia Cost of Living Updates] -> (Link to: ExFunCity coverage of Malaysia household costs and government assistance)

AI Could Become a Major Economic Driver

Artificial intelligence is another major area expected to receive attention.

Liew described the global AI expansion as a major economic opportunity for Malaysia, particularly for the country's semiconductor and data centre industries. He said Malaysia must ensure these growing sectors create wider economic benefits rather than simply attracting investment.

The official Pre-Budget Statement also identifies AI, digitalisation and high-value investment as strategic priorities.

The government wants investment to generate:

• Higher-income employment
• Technology transfer
• Stronger local supply chains
• Greater productivity
• Opportunities for Malaysian businesses

Strategic sectors include semiconductors, AI, digital services, energy, pharmaceuticals, logistics and aerospace.

Youth Jobs and Wages Under the Spotlight

Economic security for younger Malaysians is also becoming an important Budget 2027 issue.

Liew said young Malaysians should be able to feel confident that their jobs are secure, their wages are sufficient and they have opportunities for upward mobility.

This comes as Malaysia accelerates efforts to prepare workers for AI and automation.

The government recently announced an AI for the People Programme targeting 100,000 Malaysians aged 18 to 30, aimed at providing young people with skills relevant to a changing employment market.

Budget 2027 Will Follow Three Main Pillars

The Finance Ministry says Budget 2027 will be built around three broader MADANI Economy priorities:

• Raising Malaysia's national growth potential
• Improving people's living standards
• Driving governance reform

It will be the fifth MADANI Budget and the second budget under the 13th Malaysia Plan.

The government has also opened consultations with businesses, civil society groups, academics and members of the public before finalising the proposals.

Key Facts

• Malaysia Budget 2027 will be tabled on 9 October 2026.
• Cost of living is one of its main focus areas.
• AI, semiconductors and data centres are expected to play an important economic role.
• Youth wages, job security and career mobility are under consideration.
• The Pre-Budget Statement outlines 10 focus areas.
• Budget 2027 will be the fifth MADANI Budget.

What People Are Asking

When will Malaysia Budget 2027 be announced?

Budget 2027 is scheduled to be tabled in Parliament on 9 October 2026.

Will Budget 2027 address the cost of living?

Yes. The government's Pre-Budget Statement specifically identifies household living costs and protection for vulnerable groups as priorities.

Will Malaysia invest more in AI?

AI and digitalisation are among the strategic areas identified ahead of Budget 2027, alongside semiconductors, digital services and high-value employment.