OPPOSITION leader Datuk Seri Hamzah Zainudin has questioned the 2027 Budget’s development spending, arguing that its RM83 bil allocation falls short of the government’s stated annual commitment of RM90 bil.
He said the budget placed greater emphasis on short-term assistance than on investments needed to create jobs, raise incomes and strengthen the economy.
Hamzah also raised concerns over an 11.41% increase in operating expenditure and a larger allocation for the Election Commission.
“When I examined the increased allocation for the EC, I understood why so many ‘sweeteners’ were announced,” he said during the 2027 Budget debate in the Dewan Rakyat today.
Under the budget, total spending is projected at RM510 bil, against estimated revenue of RM380.8 bil.
Operating expenditure is expected to reach RM376.8 bil, equivalent to about 99% of projected revenue.
“This means that for every RM1 in government revenue, only one sen is left for development,” he said.
Hamzah recalled Prime Minister Datuk Seri Anwar Ibrahim’s pledge when presenting the Mid-Term Review of the 12th Malaysia Plan on Sept 11, 2023, to provide at least RM90 bil annually for development expenditure.
However, he said allocations had failed to reach that level for four consecutive years, standing at RM84 bil in 2024, RM81.9 bil in 2025, RM81 bil in 2026 and RM83 bil for 2027.
Next year’s allocation is therefore 7.8% below the stated benchmark.
While acknowledging that operating expenditure was essential for paying teachers and doctors, maintaining schools and hospitals, ensuring security and assisting vulnerable groups, Hamzah said such spending needed to be complemented by investments that could improve economic prospects and living standards.
He also pointed to the contributions of previous administrations in establishing economic and infrastructure foundations that continue to benefit Malaysians.
Separately, Hamzah warned that exempting micro, small and medium enterprises (MSMEs) from the RM2,000 minimum wage could create unequal pay conditions.
Businesses with annual revenue below RM50 mil could continue paying RM1,700, while workers at larger companies would receive at least RM2,000.
He cautioned that the disparity could encourage employees to leave smaller firms for better-paying jobs.
The wage increase, scheduled for June 2027, could also trigger demands for higher salaries among experienced workers seeking to preserve pay differences.
“If someone who has worked for three years is earning RM2,000, and a new worker now earns RM2,000, he will also ask for a RM300 increase to RM2,300,” he said.
Although higher wages would benefit workers, Hamzah said rising payroll costs could put pressure on businesses, particularly manufacturers.
He urged the government to provide targeted support, including incentives channelled through the Social Security Organisation, to help MSMEs absorb the additional costs without undermining business stability.—Oct 12, 2026
Main image: Malay Mail
