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Saturday, October 17, 2026

Greater gains from China ties

 Greetings from Malaysia: Ahmad Zahid arriving for a five-day working visit to Beijing and Tianjin, China, to strengthen bilateral relations and expand cooperation across key sectors.

BEIJING: Malaysia must translate its strong ties with China into tangible benefits, including better jobs, advanced technology and stronger economic growth, say analysts.

Malaysia-China Friendship Association president Datuk Abdul Majid Ahmad Khan said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s five-day working visit to China until Oct 16 offers an opportunity to build on high-level exchanges between the two countries.

He said Malaysia should identify strategic sectors and projects, particularly in technical and vocational education and training (TVET), green energy, digitalisation and artificial intelligence (AI), to drive growth.     
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“Malaysia must ensure greater and more impactful outcomes from its strong political ties with China.

“It needs to strategise the sectors in which China can act as a catalyst for driving gross domestic product growth,” he said when contacted.

Abdul Majid said specific projects, targeted research initiatives and skills development programmes were needed to translate bilateral cooperation into tangible outcomes and meet future workforce needs.

Geopolitical expert Dr Azmi Hassan said Ahmad Zahid’s visit should go beyond TVET cooperation to cover trade, high-tech investments and technology transfer.

He said the visit could help sustain Chinese investor interest in Malaysia, particularly in emerging fields such as AI.

While TVET remained a key focus, Azmi said the visit’s broader success would depend on whether discussions led to sustained investments, access to advanced technology and stronger trade ties.

KRA Group political risk consultant Amir Fareed Rahim said the visit signalled continuity and momentum in high-level Malaysia-China engagement, against the backdrop of shifting US-China relations and China’s importance to Malaysia’s economy.

“However, deeper ties with China should not be seen as Malaysia aligning itself with any major power. Malaysia’s strategic autonomy means engaging China where interests converge while maintaining equally strong relationships with the United States, Asean, the European Union and other partners.

“The objective is to maximise Malaysia’s economic and strategic interests without becoming overly dependent on any single country,” he said.

Malaysian Ambassador to China Datuk Norman Muhamad said Ahmad Zahid, who arrived here yesterday, would meet Chinese leaders in Beijing before travelling to Tianjin for the World Vocational and Technical Education Development Conference 2026.

His engagements in Beijing include a bilateral meeting with Chinese Vice-Premier Ding Xuexiang, scheduled for Oct 15 at the Great Hall of the People, and a meeting with Public Security Minister Wang Xiaohong.

Norman said the meeting with Ding would focus on strengthening existing cooperation and exploring opportunities in investment, technology, human capital and TVET.

In Tianjin, Ahmad Zahid is scheduled to attend a dinner hosted by Chinese Education Minister Huai Jinpeng before delivering a keynote address at the conference’s opening session on Oct 16.

Ahmad Zahid, who chairs the National TVET Council, is expected to be the highest-ranking foreign government representative at the conference, which will bring together 21 ministers and deputy ministers from other countries, with participation from more than 100 countries.

The visit is his third to China since becoming Deputy Prime Minister in December 2022.

Malaysia and China established diplomatic relations on May 31, 1974, with China remaining Malaysia’s largest trading partner since 2009.

Bilateral trade reached RM541.54bil in 2025, accounting for 17.7% of Malaysia’s total trade of RM3.061 trillion.

Trade between the two countries rose 35.1% to RM456.68bil in the January-to-August period this year compared with the corresponding period last year.

Malaysia's budget for 2027; Record Rm510bil budget tabled

 

One for the books: anwar arriv­ing for the tabling of the 2027 budget along­side (left) Fin­ance Min­is­ter II datuk Seri amir Hamzah azizan and (right) his wife datuk Seri dr Wan azizah Wan Ismail at Par­lia­ment. — FAIHAN Ghani/the Star

PETALING JAYA: The government has allocated a record RM510bil under Budget 2027.

“The Fifth Madani Budget continues an expansionary fiscal policy, mobilising the full strength of the nation, with total expenditure and investment amounting to RM510bil, compared with RM470bil previously,” Prime Minister Datuk Seri Anwar Ibrahim said when tabling the national spending plan in the Dewan Rakyat on Friday (Oct 9).

Anwar said RM376.8bil would be allocated for operating expenditure and RM83bil for development expenditure.

Another RM25bil will come from investments by government-linked investment companies (GLICs), RM11bil from public-private investments and RM14.2bil from investments by federal statutory bodies and companies under the Minister of Finance Incorporated (MOF Inc).

Anwar said federal revenue for 2026 was now projected to be higher than initially estimated, with the upward trend expected to continue next year.

“This year, federal revenue is projected to be higher at RM363.6bil, compared with the original estimate of RM343.1bil. Next year, revenue is expected to continue rising to RM380.8bil,” he said.

He said the Middle East crisis had also pushed the fuel subsidy bill to RM40bil.

As a result, the fiscal deficit for 2026 is now projected at 3.6% of gross domestic product (GDP), slightly higher than the original target of 3.5%.

“Nevertheless, the deficit remains on a downward trajectory, falling from 5.5% in 2022 to 3.7% last year,” he said.

Anwar said the government aimed to narrow the deficit further to 3.3% in 2027 and 3% by 2028.

“The reduction in the deficit, together with the controlled level of new borrowing, has enabled the federal government's debt-to-GDP ratio to decline steadily, from 65.2% in 2025 to 64% in 2026, and is expected to fall further to 63.7% in 2027,” he said.

Malaysis's budget for 2027; Record Rm510bil budget table


A total of Rm510bil has been allocated under the government's national spending plan for 2027. “The fifth Madani budget continues an ...Read more
Missing: ADDRESSING ‎CONCERNS

PETALING JAYA: The government has allocated a record RM510bil under Budget 2027. “The Fifth Madani Budget continues an expansionary fiscal ...Read more
Missing: ADDRESSING ‎PRESSREADER


PETALING JAYA: The government has allocated a record RM510bil under Budget 2027.

“The Fifth Madani Budget continues an expansionary fiscal policy, mobilising the full strength of the nation, with total expenditure and investment amounting to RM510bil, compared with RM470bil previously,” Prime Minister Datuk Seri Anwar Ibrahim said when tabling the national spending plan in the Dewan Rakyat on Friday (Oct 9).

Anwar said RM376.8bil would be allocated for operating expenditure and RM83bil for development expenditure.

Another RM25bil will come from investments by government-linked investment companies (GLICs), RM11bil from public-private investments and RM14.2bil from investments by federal statutory bodies and companies under the Minister of Finance Incorporated (MOF Inc).

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Anwar said federal revenue for 2026 was now projected to be higher than initially estimated, with the upward trend expected to continue next year.

“This year, federal revenue is projected to be higher at RM363.6bil, compared with the original estimate of RM343.1bil. Next year, revenue is expected to continue rising to RM380.8bil,” he said.

He said the Middle East crisis had also pushed the fuel subsidy bill to RM40bil.

Malaysia’s top 100 startups in the spotlight

As a result, the fiscal deficit for 2026 is now projected at 3.6% of gross domestic product (GDP), slightly higher than the original target of 3.5%.

“Nevertheless, the deficit remains on a downward trajectory, falling from 5.5% in 2022 to 3.7% last year,” he said.

Anwar said the government aimed to narrow the deficit further to 3.3% in 2027 and 3% by 2028.

“The reduction in the deficit, together with the controlled level of new borrowing, has enabled the federal government's debt-to-GDP ratio to decline steadily, from 65.2% in 2025 to 64% in 2026, and is expected to fall further to 63.7% in 2027,” he said.

 

 

 

 

 

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The government is confident it can spend the RM510 billion allocated in Budget 2027 without introducing any new taxes, says Minister of Finance ...
Budget 2027, the Fifth MADANI Budget, totals RM510 billion, 4.3% in 2024. The 2026 Budget, tabled in late 2025, targeted a fiscal deficit of 3. .