Budget 2027, what changes for your wallet

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled Budget 2027 in the Dewan Rakyat on Friday, 9 October. Themed "Menggapai Di Langit, Mengakar Di Bumi", it is the fifth MADANI budget, and "belanjawan 2027" is among the most searched terms on Google in Malaysia this week.

The budget allocation totals RM459.8 billion. With a further RM50.2 billion in investment from GLICs (government-linked investment companies), public-private partnerships and Minister of Finance Incorporated companies, the overall figure is reportedly RM510 billion.

Wages and tax

• The minimum wage rises to RM2,000 a month from RM1,700, effective June 2027. Micro, small and medium enterprises (MSMEs) with sales revenue below RM50 million are exempt for now.
• The government will introduce a RM2,500 minimum wage for semi-skilled jobs and graduates. No start date has been given.
• Individual tax relief goes up to RM12,000 from RM9,000. It was last revised in 2010.
• According to Harian Metro, the tax rate on chargeable income of RM70,000 to RM100,000 is cut to 18 per cent, and on RM100,000 to RM150,000 to 24 per cent. These tax measures are expected to give about five million taxpayers up to RM1,600 more in disposable income.

Aid and subsidies

• The government expects to spend more than RM80 billion on subsidies, aid and incentives in 2027, including about RM40 billion on fuel subsidies and almost RM3.3 billion in aid through the Social Welfare Department (JKM).
• The allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) is raised to RM16 billion. The details are in our report, STR and SARA 2027, who gets how much.
• Funding for Jualan Rahmah Madani and Jualan Agro Madani rises to RM750 million from RM630 million, with a target of 35,000 sales.
• Taxi and school bus drivers get a one-off payment of RM1,000, and disaster victims can get up to RM10,000 in home repair aid.

Housing, study loans and health

• Harian Metro reported a proposed full stamp duty exemption for first-time homebuyers on homes up to RM500,000, for sale and purchase agreements made from 1 January 2027 to 31 December 2030.
• Borrowers of the National Higher Education Fund Corporation (PTPTN) who earn up to RM2,500 a month can defer their repayments.
• More than 9,000 contract doctors will be offered permanent posts.

What happens next

The budget will be debated in the Dewan Rakyat over the coming weeks before it is passed. Each measure has its own start date, so check the Finance Ministry's official statements before making financial decisions based on the figures above.

Read also

• When BKK 2027 is paid, RM1,500 for civil servants and RM750 for pensioners
• Tax relief 2027, the RM12,000 limit and the list of new claims
• EPF automatic registration at 18, what changes
• BAP 2027 rises to RM200, Form Six allowance set at RM2,500
• Free AI subscriptions 2027 including ChatGPT, who qualifies and how to apply
• AI in Budget 2027, sovereign AI cloud, RM30 million via MDEC and a scam-checking app

Sources

• Harian Metro, Sorotan Belanjawan 2027: Apa manfaat untuk rakyat?
• Malay Mail, Budget 2027: Govt allocates RM80b for subsidies, STR and SARA rises to RM16b
• The Star, Budget 2027: STR, Sara funding increased to RM16bil
• Melaka Hari Ini, Inti pati Belanjawan 2027