“The government must be both pragmatic and strategic in crafting the 2020 budget, being the final year of the 11th Malaysia Plan, which is aiming to change gears and put Malaysia on a fast-forward mode to spur economic growth, increase investment, create jobs and expand socio-economic development,” said Socio-Economic Research Centre executive director Lee Heng Guie, who estimated a deficit of 3.2 per cent for 2020.

“We expect the budget will lay down key thrusts to strengthen economic resilience, sustain domestic spending and investment, save jobs, create jobs and help viable companies stay afloat. It also prepares Malaysia to emerge stronger and enhance our enterprise and worker capabilities and competitiveness for the long term.”

At a briefing over the weekend, government parliamentarians discussed projects put in place during the last year, although it was understood that outcomes or impact assessments were not raised.

A rising cost of living and flagging economy are among the ruling coalition’s chief concerns.

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Meanwhile the largest vote bank – ethnic Malays who make up more than 60 per cent of the nation’s population – are questioning whether the new government is effectively safeguarding affirmative action privileges guaranteed in the constitution, which include preferential access to education, land reserves, and civil service entry quotas.

At a thousands-strong Malay Dignity Congress held on Sunday at a stadium in Kuala Lumpur, speakers from both sides of the political divide took to the stage to champion Malay rights and discuss the “social contract” – a catch-all term for an unwritten quid pro quo agreement made before Malaysian independence that saw non-Malay ethnic minorities granted citizenship in return for recognising the Malays’ privileges. Congress chief Zainal Kling even said these citizenships could be suspended.

The forum put forward five racially contentious demands, including that top civil service positions be reserved for Malays, and constitutionally protected Chinese or Tamil-language schools be shut down.

The government had to take into account the feelings of other ethnic groups, he said. The 94-year-old leader added that political infighting within the Malay community had cost them power and forced them to rely on others.

He also said that while the congress’ demands would be looked into, “it doesn’t mean the government has to accept the demands”.

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Recently however, his comments have been met with more hostility following fierce pushback from the country’s new opposition – a partnership between the United Malays National Organisation (Umno) and the Pan-Malaysian Islamic Party (PAS), which has positioned itself as a champion of Malay-Muslim rights.

Mahathir’s remarks at the Malay Dignity Congress were made a day after he delivered an address on the government’s Shared Prosperity mandate in which he pledged to increase the incomes of all Malaysians, improve their standard of living and end corruption.

Other government lawmakers have criticised the congress’ organisers. Cabinet minister Darell Leiking said he was “disgusted” by the event, while Penang state’s second deputy chief minister P. Ramasamy warned that a relentless push towards ethnic nationalism “might end up in fascism”.

These developments, said political scientist James Chin of the University of Tasmania’s Asia Institute, pointed towards an expansionary budget as the government struggles to gain ground among the Malay voter base.

Last year Pakatan Harapan managed to form a government with less than 30 per cent of the Malay vote, while 95 per cent of the country’s voters of Chinese descent were reported to have backed the coalition. Within Pakatan Harapan, Mahathir’s Malaysian United Indigenous Party (Bersatu) and the National Trust Party (Amanah) have struggled to retain relevance with Malay voters who view the government’s multiracial approach with scepticism.

“If they don’t spend, especially in rural areas, then it will strengthen the opposition’s stance that the Malays are being marginalised, especially by majority-Chinese parties in government. They must buy the Malay ground,” Chin said of the coming budget.

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A grandee of Anwar’s People’s Justice Party said in an interview published on Monday that if Mahathir, a former Umno member, was “a leader with honour”, he should “immediately retire and hand over power to Anwar, who is 22 years younger, to take on the task of rebuilding this country”.

Mahathir’s position as prime minister was agreed on by the Pakatan Harapan coalition on the condition that he would make way for his former right-hand man, Anwar.

Mahathir has indicated this power transition will take place within a two-year period.