PUTRAJAYA, July 27 — The government aims to maintain its development spending goals for 2027, Economy Minister Akmal Nasir Nasrullah said today, even as the Anwar administration faces a global energy supply crisis that prompted some budget cuts for key ministries.

Akmal told reporters after speaking at his ministry’s monthly assembly here that the projection for total development expenditure needed in 2027 would be RM58 billion, with at least 70 per cent allocated to basic development.

“For development expenditure (DE), as we have fiscal space to guarantee spending on facilitating development, the space for basic development must be preserved,” he said.

“So the formula that we are putting forward is that at least 70 per cent of DE would be for fundamental development spending.”

Malaysia’s petroleum-related revenue is projected to contract to RM43 billion, down from approximately RM56.8 billion. 

This accounts for roughly 12.5 per cent of total federal government revenue, reflecting a deliberate effort to diversify the fiscal base away from volatile commodity prices.

The key components of this oil revenue projection include Petronas dividend, estimated at RM20 billion, down roughly 37.5 per cent from RM32 billion. 

This could be the national oil company’s lowest payout in nine years, according to several news reports.

The government directed ministries to identify up to RM10 billion in cost adjustments across the board as it tries to cope with a surge in subsidy spending to cushion the impact of the crisis.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim confirmed that the government is already formulating Budget 2027 that would reportedly focus on a “humane economy”.