OCBC report: Housing and data centre efficiency among Budget 2027 priorities
OCBC's latest Malaysia report highlights housing, transport, and data centre efficiency as priority areas in the government's pre-Budget statement for Budget 2027. The report, released on Sept 25, does not specify allocations or details for these measures.
PETALING JAYA (Oct 5): Housing and data centre efficiency conditions feature among priorities in the government's pre-Budget statement for Budget 2027, according to OCBC's latest Malaysia report.
In its Sept 25 report, Mind the fiscal gap, OCBC summarised the statement's focus areas, with housing, transport and urban liveability listed under “Social Justice and Development for All”. Data centre efficiency conditions were included under “Energy, Food, Climate and Cyber Security”, alongside grid upgrades, ASEAN electricity interconnection and flood mitigation. The report did not specify housing allocations or provide details of the data centre efficiency conditions.
Budget 2027 is scheduled to be tabled in Parliament on Oct 9. OCBC's summary also identified the Johor-Singapore Special Economic Zone (JS-SEZ), Kulim and Silicon Island under the focus area covering investment and high-value jobs. The stated priorities include realised investment and stronger local supply chains.
OCBC said the policy mix suggested continued support for medium-term projects alongside measures to address cost-of-living pressures, although elevated spending could complicate fiscal consolidation. The bank identified development expenditure, estimated at RM86 billion annually under the 13th Malaysia Plan, as the main lever for expenditure adjustment. It cautioned that cutbacks would come at the expense of public investment and economic growth, but did not forecast reductions to specific housing or data centre projects.
OCBC expects the government to project a fiscal deficit of 3.4 per cent of gross domestic product for 2027, while its own forecast is 3.6 per cent. It said global oil prices and their effect on subsidy spending would be critical to the fiscal outcome.
