Perak expects to turn RM95.5 million deficit into financial surplus this year

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Perak expects deficit to turn into surplus

Highlights

Perak is expected to turn its projected RM95.5 million deficit into a financial surplus this year, with revenue collection reaching RM1.1 billion against a target of RM1.48 billion.
Perak’s gross domestic product grew 5.7% to RM91.5 billion last year, driven by 15.2% growth in the manufacturing sector in 2025 and a fall in the unemployment rate to 3.5% in 2025.
Automotive High Tech Valley in Tanjong Malim has increased its workforce to 7,400, and EV production is expected to triple to 300,000 units by 2027, while the Third Regasification Terminal in Lumut will strengthen energy infrastructure.

This article was translated from the original. Read the original version by our correspondent here.

Perak’s fiscal performance and economic growth

As reported by The Edge Malaysia, Perak Menteri Besar Datuk Seri Saarani Mohamad said the state government expects to turn its projected RM95.5 million deficit into a financial surplus again this year. He said the performance was supported by prudent state treasury management, with revenue collection reaching RM1.1 billion and on track to meet the RM1.48 billion target.

Saarani said Perak’s gross domestic product grew 5.7% to RM91.5 billion last year, compared with 4.8% in 2024 and 2.8% in 2023, when GDP stood at RM82.7 billion. He added that the manufacturing sector surged threefold, recording growth of 15.2% in 2025.

According to him, the stronger economy also helped lower the unemployment rate from 4.8% in 2021 to 3.5% in 2025, while the number of employed people reached 1.2 million in the second quarter of 2026. Advertised job vacancies rose 40.7% to 71,815 in 2025, while 14,105 job placements were recorded, including a notable increase in placements for jobs paying RM2,000 and above and RM3,000 and above compared with the previous year.

Household spending and development driver projects

To ease cost-of-living pressures following the West Asia crisis earlier this year, the state government increased funding for the Perak People’s Prosperity Market program to RM3.2 million. A total of 132 programs had benefited more than 28,000 people by September. The state also rolled out the Perak Sejahtera: People-Centric 2026 initiative, which includes more flexible land transactions, extended payment periods, penalty waivers and fee reductions.

Saarani said the state’s development momentum would be reinforced through Budget 2027, with seven of Perak’s 10 development aspirations approved under the 13th Malaysia Plan. The listed projects include an education complex in Sitiawan, cardiothoracic surgery facilities at Raja Permaisuri Bainun Hospital, the Sungai Sepetang flood mitigation plan, the construction of schools in Ipoh and Chemor, the Perak Elephant Protection Centre and the Proton City Fire and Rescue Station.

He also said that two of the state’s five growth nodes—Automotive High Tech Valley in Tanjong Malim and Lumut Maritime Industrial City—had been included in the national budget. The centralisation of Proton vehicle production at AHTV increased its workforce to 7,400 from 1,500 in 2021, while electric vehicle production, at around 100,000 units in 2023, is expected to rise to 300,000 units by 2027. In Lumut, meanwhile, Petronas Gas Bhd’s Third Regasification Terminal project is expected to strengthen the country’s energy infrastructure and expand business activity in Perak.

We recently reported on Malaysia’s Budget 2027, which focuses on cash assistance, tax relief and reducing the fiscal deficit.

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