Affin Says Budget 2027 Can Boost Malaysia’s Productivity and Competitiveness

Affin Bank Bhd believes Budget 2027 offers opportunities to strengthen Malaysia’s productivity and global competitiveness through higher-value industries, technological innovation and deeper regional integration.

Group president and chief executive officer Datuk Wan Razly Abdullah said the budget comes at a crucial time as the country faces shifting geopolitical conditions, changing global trade patterns and continued cost pressures.

Malaysia’s projected economic growth of between 4.2% and 5.2% in 2027 could be supported by moving towards more advanced industries and technology-driven activities.

Technology, Higher-Value Industries and Islamic Finance Key to Future Growth

Wan Razly also welcomed the proposed introduction of tokenised retail savings sukuk, saying it could broaden investment access and strengthen Malaysia’s position in Islamic finance.

The initiative may create opportunities for Affin Islamic to support demand for Shariah-compliant financing, particularly in expanding sectors such as energy, utilities and data centres.

However, OCBC senior ASEAN economist Lavanya Venkateswaran warned that achieving fiscal consolidation in 2027 could prove challenging.

Rising expenditure, subsidy costs and external uncertainties may put pressure on government finances, while higher contributions from Petronas are expected to support revenue.

She cautioned that these pressures could limit the government’s ability to narrow the fiscal deficit as planned. The challenge will be to sustain economic growth and business competitiveness while maintaining a credible path towards healthier public finances.