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Budget alone won't fix economy, but govt to ease financial strain

Prime Minister Anwar Ibrahim has acknowledged that the new budget cannot single-handedly resolve Malaysia's economic challenges, but pledged that savings from plugging leakages will be channelled to ease financial pressure on the public.

LSN Malaysia · 10 October 2026

Budget alone won't fix economy, but govt to ease financial strain

Anwar said the government would redirect funds recovered through improved governance and efforts to stem wasteful spending towards direct assistance for Malaysians grappling with cost-of-living pressures. The prime minister's remarks underscore the administration's recognition that fiscal measures alone require complementary structural reforms to address underlying economic vulnerabilities. He emphasised that combating leakages and enhancing operational efficiency across government agencies would free up resources for targeted relief programmes and social support initiatives. The government's approach reflects a two-pronged strategy combining budgetary discipline with efforts to boost institutional accountability. Officials have previously outlined plans to recover substantial sums through anti-corruption drives and streamlined public spending, with a portion allocated towards subsidies and assistance schemes for lower and middle-income households.