Malaysia Oversight

Selangor govt gets set for global slowdown with RM3.23bil budget

By FMT in November 14, 2025 – Reading time 2 minute
Selangor govt gets set for global slowdown with RM3.23bil budget


amirudin shari
menteri besar Amirudin Shari said the state revenue collection was expected to exceed RM2.7 billion by year end. (Bernama pic)
PETALING JAYA:

The government today unveiled its 2026 budget totalling RM3.23 billion, with a strong focus on preparing the state for potential challenges next year, including a projected global economic slowdown.

The menteri besar, Amirudin Shari, in tabling the budget at the state assembly, said RM360 million, or roughly 30% of the development allocation, will go towards programmes designed to strengthen social protection, welfare, education, and the economic position of targeted groups.

Amirudin said the 2026 budget is expected to record a deficit of RM430 million. However, he also highlighted ‘s strong financial position, with RM2.49 billion in revenue already collected, surpassing the full-year target of RM2.35 billion. The state expects collections to exceed RM2.7 billion by year end.

The menteri besar highlighted initiatives supporting education, with RM30 million allocated to the school assistance programme, the highest allocation to date, Bernama reported.

Amirudin said the RM30 million will improve school infrastructure and provide learning support to 873 schools, covering national, vernacular, religious, and missionary schools.

In response to rising concerns about school bullying, the state government will introduce a programme in collaboration with parent-teacher associations to curb bullying and crime in schools.

Amirudin also said RM5 million will be allocated to Kafa (al-Quran and Fardu Ain) classes to subsidise fees of RM30 per month for B40 students in households with income of RM3,000 or less.

He said this would ensure access to Islamic religious education without financial burden.

Amirudin also said RM100 million has been earmarked to host the 2026 Malaysia Games (Sukma) in Selangor. The allocation will cover facility upgrades, athlete preparation, and volunteer engagement.

Key projects include the Selangor Aquatic Centre, which is expected to be completed by next June, ahead of the games in August.

Economic development is also a key focus, with RM15 million allocated to boost investment and job creation. Initiatives include the Selangor International Business Summit, Selangor Soft Landing Programme, Selangor Lab Partnership, and SME-Investor Linkages.

Amirudin noted that Selangor recorded stronger investment activity in the first half of 2025, with 948 projects approved worth RM34.65 billion, compared to 897 projects worth RM35.87 billion in the same period in 2024. These projects generated 31,886 job opportunities.

The state expects to collect RM2.8 billion in revenue next year, with land premiums contributing RM1.02 billion (36.3%) and land tax revenues RM691.27 million (24.7%). Federal grants are projected to contribute RM263.16 million (9.4%).

“Considering the projected revenue of RM2.8 billion and total expenditure of RM3.23 billion, the 2026 budget is expected to record a deficit of RM430 million,” Amirudin said.



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