The first parliamentary session of 2026 concluded with lawmakers addressing economic resilience, fiscal policy, and monitoring the impact of West Asia conflicts.
KUALA LUMPUR: The First Meeting of the Fifth Session of Parliament concluded today after focusing on national economic resilience and global geopolitical risks.
Key legislative business included the passage of the Capitation Grant Bill 2026 and the Supplementary Supply Bill (2025) 2026.
Deputy Finance Minister Liew Chin Tong said the capitation grant amendments aim to provide optimal benefits to less populous states with limited revenue.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the RM8.4 billion in supplementary supply for 2025 was fully spent without affecting the year’s 3.8% fiscal deficit target.
He noted that while high global oil prices boost Petronas revenue, they also increase the government’s fuel subsidy burden.
The Ministry of Finance stated that Bank Negara Malaysia continues to closely monitor the ringgit to ensure orderly currency adjustments.
On trade, Deputy Minister Sim Tze Tzin said Malaysia’s “friends-to-everyone” stance helped push total trade beyond RM3 trillion for the first time in 2025.
He said trade reached RM3.06 trillion, a 6.2% increase from 2024, though the government is monitoring West Asia conflicts for supply chain risks.
Deputy Economy Minister Datuk Mohd Shahar Abdullah said the government is evaluating concerns about cost-push inflation from the conflicts.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said new US tariffs will have minimal impact on Malaysian palm oil exports.
She explained the US accounts for only 1.1% of exports, with major markets being India, Kenya and China.
The Ministry of Investment, Trade and Industry said it supports over six local integrated circuit design companies to develop “Made by Malaysia” technology.
The ministry also stated that trade agreements do not affect technical requirements for Lynas Malaysia or other rare earth firms.
To complete infrastructure, the government approved a RM135 million soft loan for the nearly 90% finished East Klang Valley Expressway.
The Dewan Rakyat will reconvene from June 22 to July 16, 2026, with the Dewan Negara sitting from July 20 to August 4, 2026.
