Malaysian Prime Minister Anwar Ibrahim secured the passage of Budget 2027 in the Dewan Rakyat on Oct 29 after receiving unexpected backing from Parti Pribumi Bersatu Malaysia.
The Supply Bill 2027 cleared the Lower House at the policy stage by a voice vote after Second Finance Minister Amir Hamzah Azizan wrapped up debates. Speaker Johari Abdul declared the bill passed after noting that more voices supported it. Unlike the budget vote in October 2025, which recorded 120 ayes, 67 nays, and 35 absent votes, no opposition MPs rose to call for a division this time around.
Shifting Alliances and the Confidence and Supply Agreement
Hours before the parliamentary vote, the government signed a confidence and supply agreement with 13 opposition and independent MPs from Bersatu and the Malaysian United Democratic Alliance. Deputy Prime Minister Fadillah Yusof represented the federal government at the signing alongside Bersatu president Muhyiddin Yassin. Barisan Nasional de facto Law Minister Azalina Othman Said and senior political adviser to the prime minister Tengku Zafrul Aziz also attended the ceremony.
/file/attachments/orphans/voing_888855.jpg "Photo: Malaysiakini")
In exchange for supporting the budget and key reforms—such as capping the prime minister to two terms and separating the roles of the attorney-general and public prosecutor—the lawmakers secured annual constituency funding between RM3 million and RM4 million each. Muhyiddin told reporters that Bersatu will remain a vigilant check-and-balance element for the administration. However, Mas Ermieyati Samsudin noted that suspended Bersatu MPs perceived to be aligned with opposition leader Hamzah Zainudin were neither invited nor informed of the signing.
Fiscal Scope and Economic Priorities of Budget 2027
Tabled by Anwar Ibrahim on Oct 9, the RM510 billion spending package represents the fifth budget under the Madani Government. The overall value comprises RM459.8 billion in federal expenditures, alongside RM25 billion in investments from government-linked investment companies, RM11 billion in public-private investments, and RM14.2 billion from federal statutory bodies and Finance Minister Incorporated companies.
| Budget Component | Allocated Value |
|---|---|
| Total Budget Value | RM510 billion |
| Federal Government Expenditure | RM459.8 billion |
| Sabah State Allocation | RM18.7 billion |
| Sarawak State Allocation | RM16.2 billion |
During his winding-up speech for the Finance Ministry, Amir Hamzah Azizan affirmed that Putrajaya will continue implementing the sales and service tax rather than reintroducing the goods and services tax. The administration is targeting a fiscal deficit of 3.3% of GDP in 2027, down from 3.6% in 2026. Cost-of-living relief remains a central pillar, backed by more than RM80 billion in subsidies and assistance programs, alongside wage reforms that lift the national minimum wage from RM1,700 to RM2,000 per month starting in June 2027.
Parliamentary Road Ahead and Political Implications
East Malaysia’s ruling coalitions, Gabungan Parti Sarawak and Gabungan Rakyat Sabah, remain vital to the administration’s stability, backed by allocations of RM18.7 billion to Sabah and RM16.2 billion to Sarawak. Even if all 30 Barisan Nasional lawmakers had joined forces with the 57 PAS and other allied MPs, Anwar would have retained a 119-seat majority.
The successful voice vote grants the prime minister a temporary reprieve and political breathing room ahead of the Melaka polls on Nov 14. The Bill will now proceed to committee-stage debates scheduled from November 2 to 26, before moving to the third reading and the Dewan Negara.
