14/10/2026

WEDNESDAY | OCT 14, 2026

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Early action urged as Super El Nino threatens households

‘Measure Budget 2027 by results, not allocations’

Ű BY T.C. KHOR newsdesk@thesundaily.com

PETALING JAYA: The government should measure Budget 2027 by whether it delivers better jobs, more productive businesses and stronger domestic industries rather than by the size of its allocations, said senior analyst Ng Sze Fung. Ng, from independent, non-profit public policy research institute Bait Al Amanah, said additional spending should strengthen productive capacity, improve public services and generate lasting economic returns. “A bigger budget is not necessarily a better budget. What matters is whether every additional ringgit is stretched to produce better economic opportunities for Malaysians and positive spillover effects for the economy.” The RM510 billion spending and investment envelope is up 8.5% from RM470 billion in 2026. Ng said with growth forecast to moderate from 4.8%–5.3% in 2026 to 4.2%–5.2% in 2027, continued public spending could help sustain domestic economic activity, but a larger budget does not by itself guarantee stronger growth. He also said the fiscal deficit is projected to narrow from 3.6% of GDP in 2026 to 3.3% in 2027, but operating expenditure of RM376.8 billion, alongside debt servicing and other recurring commitments, would limit fiscal flexibility. He added that the government needs to strengthen revenue collection, improve spending efficiency and continue reforming subsidies and procurement without undermining essential services or long-term investment. Ng said the increase in financing facilities and loan guarantees from RM50 billion to RM57 billion should be accompanied by practical support to help SMEs become more productive. He said access to financing alone would not necessarily improve productivity, adding that SMEs also need help adopting technology, developing workers’ skills and reaching larger markets. He proposed linking financing programmes with technical assistance, workforce development and stronger industry ties. “Their effectiveness should be measured by improvements in business productivity, market expansion and the creation of better-paying jobs rather than financing disbursement alone.” Ng also called for the one-percentage-point cut in income tax rates for eligible SMEs and MSMEs to be complemented by incentives that encourage productive investment. He proposed that the government review existing tax incentives and strengthen compliance to ensure revenue forgone delivers meaningful economic returns. “The real question is not whether businesses pay slightly less tax but whether the tax system encourages them to invest, become more productive and create better jobs.” Under the GEAR-uP programme, government-linked investment companies will mobilise RM25 billion in investments. Ng said the funds should help domestic companies commercialise technology, expand operations and compete internationally, while remaining commercially sustainable and generating appropriate risk-adjusted returns. He said the investments should also be assessed by whether they develop technology, strengthen domestic supply chains and create high-skilled jobs. He called for a time-bound transition for MSMEs with annual sales below RM50 million that are exempt from the minimum wage increase to RM2,000 from June 2027. Ng said income classifications alone might not reflect differences in household needs, including living costs, access to public transport and family responsibilities. He said subsidies remain necessary to cushion immediate cost-of-living pressures but better wages, affordable transport and reliable public services are equally important to make living costs more manageable over the longer term.

expenditure, particularly among lower-income families who already spend a substantial portion of their income on essential food items.” He also urged authorities to closely monitor agricultural production, food supplies and prices, while strengthening enforcement against profiteering and unjustified price increases. Saravanan said elderly residents living alone, outdoor workers and families in poorly ventilated homes would be particularly vulnerable to extreme heat, making targeted financial assistance and public health protection equally important. He stressed that the federal government must immediately initiate a nationwide, multi-agency preparedness programme rather than wait for extreme weather to strike, with clear responsibilities for authorities and utility providers. “Preparedness today could prevent greater hardship tomorrow,” he said, stressing that early intervention would likely cost far less than dealing with the financial, social and health consequences of delayed action. “The government must lead, utility providers must act and consumers must prepare. The time to start is now, not when El Niño is already affecting our daily lives.”

o Fomca calls for national preparedness programme involving ministries, utility providers, regulators, public health agencies

Ű BY HARITH KAMAL newsdesk@thesundaily.com

energy-efficient appliances announced under Budget 2027, saying the incentive may be insufficient to help poorer families replace ageing refrigerators and air-conditioners. “For a low-income family, RM200 may not be sufficient to make the purchase of a new energy-efficient refrigerator or an air conditioner affordable,” he noted. Saravanan proposed higher targeted incentives and an appliance trade-in scheme for B40 households, senior citizens and persons with disabilities to help reduce long-term electricity costs without adding to their financial burden. Beyond rising utility bills, he said prolonged dry weather could disrupt agricultural production and food supply chains, potentially driving up the prices of essential goods and placing further pressure on household budgets. “Depending on the severity and duration of the conditions, disruptions to food production and supply chains could place additional pressure on food prices. “This would directly affect household

PETALING JAYA: The government is being urged to introduce early measures to protect households from potential cost-of-living increases, as climate forecasts point to a significant El Niño event in 2027 that could stress utility supplies and food prices. Federation of Malaysian Consumers Associations (Fomca) CEO Dr Saravanan Thambirajah said prolonged extreme heat could deepen financial hardship for families already struggling with daily expenses, particularly low-income households unable to afford higher utility bills or energy-efficient cooling appliances. His warning comes as the Meteorological Department projects that temperatures could exceed 41°C between March and May next year, potentially surpassing the country’s all-time record of 40.1°C set in Chuping, Perlis, in April 1998. Department director-general Dr Mohd Hisham Mohd Anip said the anticipated Super El Niño could be more intense than the 1997/1998 and 2015/2016 episodes, with its index projected to exceed 2.5, compared with the previous peak of 2.3. Against this backdrop, Saravanan said Malaysia could not afford to wait until extreme heat triggers water disruptions, surging electricity demand and higher food prices before taking preventive action. “Preparedness must begin now and the government must take the lead.” He called for an urgent, coordinated national preparedness programme involving ministries, utility providers, regulators and public health agencies, adding that a fragmented response would leave vulnerable communities exposed. Saravanan said prolonged hot weather could force households to rely more heavily on air-conditioners and fans, pushing up electricity consumption, while reduced rainfall could threaten reservoirs, water catchments and agricultural production. However, he cautioned against placing the burden of conservation entirely on consumers while inefficiencies in electricity and water supply systems remain unresolved. He also urged the government to increase the Nur Madani rebate of up to RM200 for

PAYING RESPECTS ... Former prime minister Tun Dr Mahathir Mohamad reciting Surah Yasin and offering prayers for his wife, the late Tun Dr Siti Hasmah Mohd Ali at a tahlil ceremony held at the Perdana Leadership Foundation in Putrajaya yesterday. – BERNAMAPIC

Malaysia, China enhancing cyber scam security BEIJING: Cross-border investigations and the recovery of assets stolen through cyber scams are among Malaysia’s key priorities in strengthening security cooperation with China, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. visit to Beijing and Tianjin, which began on Monday. He said Malaysia and China are also strengthening intelligence sharing, and coordinating investigations and enforcement operations to address cross-border crime. remains close. Ahmad Zahid said Home Minister Datuk Seri Saifuddin Nasution Ismail has held several discussions with his Chinese counterpart on the matter.

He also said Malaysia, through the Drug Prevention Committee that he chairs, recognises the need for cross-border cooperation, with both countries making good progress in their efforts. On cyber scams, he said Malaysia joined a programme under the International Alliance Against Telecommunications and Cyber Fraud on Sept 10, with cross-border investigations and stolen asset recovery identified as priorities. “To strengthen the legal framework against cybercrime, I personally tabled the Cybercrime Bill in the Dewan Rakyat during the parliamentary meeting last July.” – Bernama

Both countries have established a joint security committee, which also focuses on addressing drug smuggling. “Besides intelligence sharing and enforcement, we are adopting new methods to obtain early information on drug smuggling operations and facilities used to process illicit drugs. “These efforts are underway and will be further strengthened,” he said, adding that cooperation between Malaysian police and China’s National Narcotics Control Commission

He said closer bilateral cooperation would help both countries address transnational crimes while delivering practical benefits under their comprehensive strategic partnership, particularly in security and law enforcement. “We face several challenges in dealing with cyber scams as the victims are not limited to Chinese nationals. That is why I believe bilateral cooperation between our countries is crucial in addressing this problem.” Ahmad Zahid, who is also Rural and Regional Development minister, is on a five-day working