PETALING JAYA: Banks in Malaysia approve of Budget 2026’s fiscal discipline and the government’s deficit target of 3.5% of gross domestic product (GDP) by next year, calling it a necessary foundation for long-term stability.
Across the board, the banks also praised the government’s continued push for Islamic finance; environmental, social and governance adoption; and digital transformation.
Malayan Banking Bhd (Maybank) president and group CEO and The Association of Banks in Malaysia chairman Datuk Seri Khairussaleh Ramli applauded the government’s broad-based approach, striking a balance between delivering investment stimulus, growth of new economic sectors and social relief while maintaining balance fiscal discipline in which it is on track to meet the Fiscal Responsibility Act’s medium-term target budget deficit of 3% of GDP.
He said Maybank fully supports the government’s direction on cross-border economic leadership, particularly on the development of the Johor-Singapore Special Economic Zone (JS-SEZ), which strengthens Johor’s position as Malaysia’s strategic gateway.
“As an early mover, Maybank has mobilised RM8 billion in terms of financing and investments in the JS-SEZ and helped established two Single-Family Offices (SFO) with 11 more in the pipeline,” Khairussaleh said.
CIMB Group CEO Novan Amirudin commended the government’s commitment to fiscal discipline, with a target of reducing the fiscal deficit to 3.5% in 2026, a key step towards long-term economic resilience.
Amid fierce global competition, he said, the government’s move to champion a high-value economy with the introduction of the Asean Business Entity (ABE) status would help Malaysian firms expand regionally.
He also welcomed the JS-SEZ, stating that CIMB has committed RM10 billion in financing to support it.
“With facilitation from the Iskandar Malaysia Facilitation Centre, supported by the Johor Super Lane and Single-Family Office Incentive Scheme, this effort will continue attracting high-quality investments and talent.”
Public Bank CEO Tan Sri Tay Ah Lek said the RM419 billion expenditure bill was a strong statement of intent that balanced subsidy reforms with consumer welfare, calling it positive for domestic demand and household spending. “Firm focus on fiscal discipline is demonstrated in the lower deficit target of 3.5% to GDP from the expected 3.8% in 2025.”
Tay said savings from subsidy reforms have accorded the government fiscal flexibility to support those in need, a positive for consumer spending and domestic demand.
Affin Group CEO Datuk Wan Razly Abdullah praised the Budget’s fiscal reforms, describing them as a continuation of Malaysia’s steady deficit reduction and structural strengthening.
“The group is encouraged by government’s commitment towards fiscal consolidation, targeting fiscal deficit to narrow steadily from 4.1% of GDP in 2024 and 3.8% of GDP in 2025 to 3.5% of GDP in 2026, with ongoing reforms in revenue enhancement and prudent expenditure management, to align fiscal strategies but ensure an adaptive approach to development projects that generate long term economic growth.”
Hong Leong Bank said the 3.5% deficit target and RM81 billion development expenditure is a decisive step towards fiscal sustainability. The bank lauded new revenue measures and efficiency reforms as positive for Malaysia’s sovereign credit standing.
“The fiscal deficit is expected to further narrow to RM75 billion or 3.5% of GDP next year, from RM77 billion or 3.8% of GDP in 2025, bringing us closer to the
AmBank Group CEO Jamie Ling praised Budget 2026’s focus on high-growth, high-value sectors including semiconductors, renewable energy and AI-driven MSMEs. “These policies are paramount in positioning the economy to reach an RM2 trillion target by 2030.”
OCBC Malaysia CEO Tan Chor Sen and Standard Chartered Malaysia CEO Mak Joon Nien both welcomed Malaysia’s cross-border ambitions through the Asean Power Grid and the JS-SEZ.
“Budget 2026’s focus on the JS-SEZ, Asean Power Grid and Asean Business Entity reinforces Malaysia’s strategic role as a regional connector. We are ready to support cross-border growth,” said Tan.
Mak said, “Deeply rooted in Asean, we at Standard Chartered are encouraged by the continued progress in cross-border investment zones.”
He added that Budget 2026 strikes a careful balance of today and tomorrow. “The government’s decision to maintain fiscal discipline while investing in the right pillars will define Malaysia’s long-term competitiveness.”
Agrobank CEO Datuk Tengku Ahmad Badli Shah commended the government’s RM1.1 billion allocation for agropreneurs, saying Budget 2026 embodies hope and opportunity for farming communities and strengthens national food security.
“Budget 2026 has allocated RM1.1 billion for Agrobank to support agropreneurs in expanding their operations while advancing automation and mechanisation. This substantial funding will not only empower industry players but also boost productivity and ensure the agricultural sector as a pillar of national food security,“ he said.
In conclusion, as Malaysia targets 4% to 4.5% GDP growth in 2026, the banking industry stands ready to mobilise financing and partnerships to advance the Budget’s ambitions, from green transition and SME empowerment to cross-border economic leadership.