SHAH ALAM, Nov 18 — The 2026 Selangor Budget is expected to anchor Malaysia’s economic growth next year, said BIMB Securities Research, which highlighted the state’s significant influence on the national economy.
In its report The Quarter That Moves Malaysia: Selangor’s 2026 Fiscal Momentum, the think tank said Selangor remains a critical node in global supply chains as it hosts major semiconductor, electrical and electronics, automotive, and logistics ecosystems.
This, it said, reflects the state’s outsized role as a contributor of more than a quarter of the country’s gross domestic product (GDP).
“The budget is positioned not only to sustain the state’s projected growth of 5 to 5.5 per cent, but also to anchor Malaysia’s national outlook of 4 to 4.5 per cent,” it said in the report published today.
BIMB Securities Research said that amid ongoing trade tensions and the global push to diversify supply chains, the state is a clear net beneficiary as it draws higher-value manufacturing, design activities, and investment relocation from multinationals seeking stability and strong connectivity.
“Collectively, these dynamics position Selangor not just as a state growth engine, but as a central driver of Malaysia’s economic resilience and competitiveness in 2026.”
On November 14, Menteri Besar Dato’ Seri Amirudin Shari announced a RM3.23 billion 2026 Selangor Budget, themed “Selangor Champions, People Prosper”.
About 57.6 per cent of the allocations, or RM1.86 billion, has been set aside for operating expenditures, while 42.4 per cent, or RM1.37 billion, is for development expenditures.
According to BIMB Securities Research, Selangor’s projected growth of up to 5.5 per cent, which surpasses the national average, reflects its highly diversified economic base, continued expansion in hi-tech and semiconductor-related industries, resilient SME activity, and pivotal position within global supply chains.
It said the budget underscores the state’s commitment to industrial upgrading, infrastructure development, and digitalisation, which are being closely watched by investors seeking real sector momentum.
The report added that Selangor’s development agenda for next year sends a clear, investment-relevant message that Selangor is shifting from pure infrastructure spending toward hi-tech industrialisation and social-capital expansion.
This, it said, is underpinned by major pushes in semiconductors, autonomous mobility, aerospace, digital backbone (dark fibre), and structured industrial parks, and “sizeable allocations to education, welfare, community facilities, healthcare, and food security reinforce demand visibility for consumer-facing sectors and service providers”.
“Urban regeneration through the Selangor Maritime Gateway (SMG), township upgrades, and climate-resilience work further support contractors and property-linked plays.
“In short, Selangor’s development expenditure pipeline positions the state as the most advanced, tech-driven, and socially supportive growth engine in Malaysia,” the think tank concluded.
