Rafizi Ramli has voiced concern over the government’s decision to involve government-linked companies (GLCs) and government-linked investment companies (GLICs) in the preparation of Budget 2026.
Cautioning that the move could negatively impact strategic companies involved in the matter, the former economy minister noted that a similar approach was previously taken during the planning and implementation of the 13th Malaysia Plan (13MP).
Rafizi asserted that such an approach is misguided as a national budget should only involve the government directly without extending to GLCs and GLICs.
“For example, if GLCs become part of government directives or policies and start taking on projects or expenditures that may not meet investment criteria, but instead reflect the government’s social objectives, problems will arise later,” he said in his Yang Berhenti Menteri podcast last night.
“In four or five years, when those projects fail to deliver results or prove unviable, GLICs and GLCs involved will face governance issues,” he added.
Rafizi was commenting on Budget 2026, which was tabled in the Dewan Rakyat yesterday by Prime Minister Anwar Ibrahim, who is also the finance minister.
The budget marks the fourth tabled by the Anwar-led government and the first under the 13MP, which forms the foundation for Malaysia’s five-year development plan.
In presenting the budget, Anwar said spending by GLICs, statutory bodies, and public-private investments would provide the government with an additional RM50.8 billion for public initiatives.
This, he added, would bring the total allocation for next year’s budget to RM470 billion.
Budget 2026, at RM419.2 billion, is slightly smaller than Budget 2025’s RM421 billion, as the Anwar administration reins in its spending and faces pressure from global oil prices.
While the latest budget is the first contraction since Budget 2020, it maintained inclusions on initiatives to ease living costs and strengthen the public sector.
Neglecting agricultural sector
Rafizi also criticised the development allocation of RM550 million for the Agriculture and Food Security Ministry, saying it reflects a lack of commitment from Putrajaya to modernise the agricultural sector.
The former PKR deputy president said the allocation shows how the government is still prioritising operating expenses, including subsidy programmes, rather than investing in structural reforms.
“The ministry was given RM550 million, less than two percent of the development budget. Does this mean the government has no ambition to modernise agriculture into a full-fledged industry?” he asked.
“The ministry’s RM2 billion operating expenditure includes fertiliser subsidies. If we keep relying on subsidy programmes, agriculture will not be modernised, and that will remain a problem,” he added. - Mkini
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