Last updated on October 14, 2025
KUALA LUMPUR, 12 October 2025 — Malaysia’s Budget 2026 has drawn strong support from leading financial institutions, with UOB Malaysia and RHB Banking Group both commending the government’s balanced and forward-looking fiscal strategy that aligns with the 13th Malaysia Plan and the Ekonomi MADANI framework.
Ng Wei Wei, Chief Executive Officer of UOB Malaysia, described the budget as “a strategic and balanced approach to advancing Malaysia’s economic transformation.”
She highlighted that its alignment with high-value, high-growth investments marks a crucial shift towards quality-driven development, essential for Malaysia’s goal of achieving high-income nation status by 2030.
“We welcome targeted incentives for sectors such as semiconductors, advanced technology, pharmaceuticals, and green innovation,” Ng said. “These measures will strengthen supply chains, create high-income jobs, and attract quality investments.”
Ng also noted the importance of regional initiatives, citing the Northern Corridor, Selangor’s infrastructure push, the Johor-Singapore Special Economic Zone (JS-SEZ), and Sarawak’s renewable energy hub as key enablers of balanced regional growth.
On fiscal and environmental measures, she added:
“The Government’s commitment to fiscal reforms, including the targeted narrowing of the deficit to 3.5% of GDP, alongside steps such as carbon pricing and green energy tariffs, reflects sound financial stewardship and a strong transition strategy toward a low-carbon economy.”
Ng further lauded initiatives to strengthen Malaysia’s semiconductor ecosystem through co-investments, incubator programmes, and targeted financing, describing them as “crucial to deepening Malaysia’s participation in the global semiconductor value chain.”
She emphasised that UOB Malaysia remains committed to enabling SME growth through digitalisation and sustainable financing, noting that RM50 billion has been earmarked for related programmes and guarantees under Budget 2026.
Meanwhile, Dato’ Mohd Rashid Mohamad, Group Managing Director and Group Chief Executive Officer of RHB Banking Group, hailed the Budget as “a progressive and inclusive fiscal framework that underscores the government’s commitment to sustainable growth, resilience, and social equity.”
He highlighted the RM419.2 billion allocation, comprising RM338.2 billion for operations and RM81 billion for development, as a reflection of “a balanced approach to fiscal consolidation and nation-building.”
“The rationalisation of subsidies, projected to save RM15.5 billion annually, and the reinvestment of these funds into social programmes and infrastructure, exemplify prudent financial management,” he said.
Rashid also affirmed RHB’s alignment with the national sustainability agenda, noting that Budget 2026’s focus on ESG, digitalisation, and MSME empowerment complements RHB’s PROGRESS27 strategy.
“We are mobilising RM90 billion in Sustainable Financial Services by 2027 and progressing toward net-zero emissions by 2050, reinforcing our long-term commitment to responsible growth,” he added.
Both leaders echoed optimism that Budget 2026 will accelerate Malaysia’s transition toward a high-value, inclusive, and low-carbon economy, positioning the nation as a competitive force within ASEAN’s evolving economic landscape.
