Selangor to review 2026 budget amid war-driven economic risks

Selangor to review 2026 budget amid war-driven economic risks

Selangor menteri besar warns that the war in the Middle East will have long-term effects on the national and state economy.

amirudin shari
Selangor menteri besar Amirudin Shari said a special task force has been formed to assist the state government in formulating its response to the Middle East conflict.
PETALING JAYA:
The Selangor government will review its 2026 budget to address economic risks caused by the Middle East war.

Menteri besar Amirudin Shari said the war has led to the closure of the Strait of Hormuz, which has impacted the supply of fuel, fertilisers, and key materials for the healthcare and semiconductor industries.

“To face this crisis, the state government will review its 2026 budget to focus on the cost of living and assistance for affected citizens, support for industries, and explore opportunities such as accelerating the energy transition,” he said in a statement.

“At the state government level, all departments are required to coordinate efforts and programmes and operate in crisis mode.

“This war will have long-term effects on the national and state economy, and all Selangor residents must work together to face the challenges ahead.”

The state allocated RM3.23 billion for its 2026 budget.

Amirudin said he chaired a special meeting of the Selangor Economic Action Council today to discuss several key measures to help Selangor’s residents and industries in response to the war.

He said the meeting followed a roundtable session where economic and industry experts shared their experience in facing such crises.

He also said a special task force chaired by former Bank Negara Malaysia governor Muhammad Ibrahim has been formed to assist the state government in formulating its response to the conflict.

The task force’s members will comprise experts from fields such as economics, energy, food supply and banking.

Amirudin said the state government will suspend official overseas travel for all departments, except for matters related to promoting investment and tourism from abroad to Selangor.

Civil servants in Selangor will also work from home from Tuesday to Thursday starting April 15 to reduce fuel consumption and traffic congestion.

Amirudin encouraged the private sector in Selangor to implement work-from-home policies if possible, adding that the state government is ready to assist in digital technology adaptation.

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