New Straits Times
10 October 2025
Banks: 2026 Budget reflects fiscal prudence, supports MSME growth
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, when tabling Budget 2026 in the Dewan Rakyat today. Bernama pic
KUALA LUMPUR: Financial institutions have lauded the 2026 Budget, describing it as a balanced and forward-looking fiscal plan that underscores discipline, inclusivity and long-term resilience.
CIMB Group Holdings Bhd group chief executive officer (CEO) Datuk Novan Amirudin commended the government's continued commitment to fiscal prudence, with a target to narrow the deficit to 3.5 per cent in 2026 — a crucial step towards long-term economic stability.
"The budget reflects a strong commitment to strengthening the economy, raising living standards, and enhancing Malaysia's attractiveness for investment," Novan said in a statement.
He said the budget's focus on empowering micro, small and medium enterprises (MSMEs)through expanded access to financing via Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Bank Negara Malaysia facilities would accelerate automation and digitalisation.
"These measures will help accelerate the adoption of automation and digitalisation, areas where CIMB continues to champion through our CIMB OCTO Biz and SMEBizReady proposition, designed to support businesses to scale sustainably," he said.
AmBank Group group chief executive officer Jamie Ling lauded the budget's allocations towards high-growth, high-value sectors as critical to achieving the RM2 trillion economy target by 2030.
Ling said the budget's emphasis on the services sector will benefit from higher digitalisation adoption through automation tax incentives, Islamic finance expansion and tourism prospects.
He added that measures under the New Industrial Master Plan, strategic investments by Khazanah Nasional Bhd and Kumpulan Wang Persaraan in semiconductor ecosystems, as well as targeted financing for high-value activities, will drive the nation's export ambition of RM1 trillion by 2030.
RHB Banking Group group managing director and CEO Datuk Mohd Rashid Mohamad said the budget's focus on the Ekonomi Madani framework underscores the government's intent to balance rakyat well-being with 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 reflect prudent financial stewardship and inclusive development," he said.
Mohd Rashid said the government's continued support for MSMEs, which are the backbone of Malaysia's economy, would further strengthen business resilience.
"Through financing guarantees, entrepreneurship incentives and 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 and SJPP for home and business financing.
"These efforts are consistent with RHB's commitment to enhancing access to financing and advisory support for growth-driven businesses," he added.
(Web Source: https://www.nst.com.my/business/corporate/2025/10/1292093/banks-2026-budget-reflects-fiscal-prudence-supports-msme-growth)