by Tan Chor Sen, Chief Executive Officer
Kuala Lumpur, 9 October 2026 – MADANI Budget 2027 reflects the government’s commitment to its medium-term economic objectives, while promoting inclusive growth and ensuring that the benefits of development are shared broadly across businesses, communities and households.
We are encouraged by the Budget’s focus on attracting quality investments and accelerating the growth of higher-value industries. Prioritising sectors such as semiconductors, advanced manufacturing, the digital economy and new energy will strengthen Malaysia’s economic position and support the country’s next phase of growth.
From the semiconductor and advanced manufacturing ecosystems in Penang and Kulim to Tanjong Malim’s emergence as a regional automotive hub, these developments can also help local companies integrate into more sophisticated supply chains and move up the value chain. The RM25 billion in domestic investment being mobilised by GLICs under GEAR-uP further supports this direction.
Additionally, enhancements to the Global Services Hub incentive will further reinforce Malaysia’s attractiveness as an investment destination. In today’s disruptive global economy, Malaysia is well placed to capture a greater share of foreign direct investment, and we commend the Government for moving decisively to capitalise on this opportunity.
We welcome the Budget’s strong focus on enhancing the competitiveness of Malaysian SMEs. Lower tax rates, incentives for technology and productivity investments, and expanded financing through SJPP and CGC will help businesses scale, innovate and grow with confidence.
Beyond the domestic market, measures such as the RM60 million allocation to MATRADE, RM1 billion in BPMB financing for export-oriented SMEs, and the MyABE initiative will strengthen the pathway for Malaysian companies to expand into new markets across ASEAN and beyond.
We are also pleased to see DBKL’s plans for 22 kilometres of covered pedestrian walkways connecting key landmarks across Kuala Lumpur. Better connectivity will make the city more accessible, vibrant and attractive for both businesses and visitors. For OCBC, this is particularly significant as our roots in the historic Masjid Jamek area date back to 1926, and we remain committed to celebrating and preserving the rich heritage of the precinct.
