Kuala Lumpur: Malaysian Prime Minister Anwar Ibrahim unveiled an expansionary budget for 2026 on Friday, the largest in the country's history, aimed at developing high-value economic activities while improving the people's living standards.

The budget allocates 470 billion ringgit (111.3 billion U.S. dollars), reflecting the government's commitment to balance national development with the well-being of its citizens by prioritizing quality of life across all segments of society and strengthening economic resilience, Anwar said in his speech to parliament.

"We have carried out bold and thorough reforms that are now beginning to yield meaningful results, particularly in raising the ceiling of economic growth and lifting the floor of public well-being," he said.

Of the total, 338.2 billion ringgit is for operating expenses and 81 billion ringgit for development projects, while government-linked investment companies (GLICs) will be allocated 30 billion ringgit to venture into strategic sectors, with the remainder going toward other initiatives.

Among the key infrastructure projects to be undertaken is a 2 billion ringgit undersea cable project spanning 3,190 km from the state of Johor to the northern Borneo states of Sarawak and Sabah, to support digitalization and development efforts in those areas.

In addition, 2.2 billion ringgit will be allocated for various infrastructure works related to flood mitigation to reduce the impact and economic damage caused by persistent flooding in parts of the country.

Food security and production will also receive a boost with various initiatives, including land rehabilitation and subsidies for key materials such as fertilizers.

Key food crops, including rice, corn, and onions, will receive special attention, with 2.6 billion ringgit allocated for rice cultivation, as well as initiatives for the raising of livestock to increase the country's meat production.

The government is also allocating 43 billion ringgit to improve the Defense and Home Ministries to boost national security readiness, covering both maintenance and the purchase of defense assets, including medium-, short-, and very short-range air defense systems and two multi-role support ships. (1 ringgit equals 0.23 U.S. dollars)

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