Business Today
10 October 2025
Budget 2026: Balances Fiscal Discipline And Nation Building Priorities
By Dato’ Mohd Rashid Mohamad
RHB welcomes Budget 2026 as a progressive and inclusive fiscal framework that reflects the Government’s commitment to sustainable growth, economic resilience and social equity. The allocation of RM419.2 billion – with RM338.2 billion for operational and RM81 billion for development expenditure, and a targeted fiscal deficit of 3.5% of GDP, demonstrates a balanced approach to fiscal consolidation and nation-building under the 13th Malaysia Plan.
We commend the Government’s continued focus on the Ekonomi MADANI framework, which prioritises the wellbeing of the rakyat while driving long term structural reforms. The rationalisation of subsidies, expected to save RM15.5 billion annually, and the reinvestment of these savings into targeted social programmes and infrastructure prudent financial stewardship and inclusive development.
As a responsible and purpose-driven financial institution, RHB is fully aligned with the national agenda to accelerate Malaysia’s transition toward a high-value, low-carbon economy. Budget 2026’s focus on ESG, digitalisation, and MSME empowerment closely aligns with PROGRESS27, RHB’s corporate strategy. In support of this transition, RHB is mobilising RM90 billion in Sustainable Financial Services by 2027 and progressing toward net-zero target by 2050, reinforcing our long-standing commitment to sustainable growth.
We also welcome the Government’s continued support for micro, small and medium enterprises (MSMEs) which are the backbone of Malaysia’s economy. Through financing guarantees, entrepreneurship incentives, digitalisation programmes, the Budget enables smaller enterprises to scale and strengthen resilience. This is further reinforced by the increase in Government guarantees under the Skim Jaminan Kredit Perumahan (SJKP) and Syarikat Jaminan Pembiayaan Perniagaan (SJPP) for home financing and business financing. These efforts are consistent with RHB’s commitment to enhancing access to financing and advisory support for growth-driven businesses.
We applaud the Government’s vision and look forward to working together to enable progress for all Malaysians and build a more resilient, equitable, and sustainable Malaysia.
The author is the Group Managing Director/Group Chief Executive Officer RHB Banking Group