2027 budget to include initiatives to reduce M40’s burdens

The 2027 Malaysian budget will encompass measures to alleviate the financial pressures faced by middle-income individuals, also known as the M40 group, announced Prime Minister Anwar Ibrahim. The government has retained targeted electricity and fuel subsidies in its 2026 budget, which according to the Treasury, benefit the middle class who generally consume more electricity and fuel compared to those in the lower-income group.

In its annual budget preparation for next year, the government has compiled a list of priority initiatives to reduce the burdens of the M40 group, Prime Minister Anwar informed reporters following a discussion on the 2027 federal budget at the finance ministry's headquarters. Besides the extension of childcare benefits from six to 12 years, a relief of RM1,000 for domestic tourism, and widened stamp duty exemptions for homebuyers, the budget will also include measures specifically aimed at the M40 group.

Prime Minister Anwar clarified that the investigations involving Tabung Haji (TH), a national savings organization, have extended beyond the scope of the royal commission of inquiry (RCI) report. This report only covered the period from 2014 to 2020, but the current investigations are looking into TH's management prior to and after this period.

This decision, shared by the Prime Minister, was made in light of the fact that there is no hindrance to examining TH's operations before and after the specified timeframe. This move was reportedly supported by enforcement agencies and investigators.