2027 budget to include initiatives to reduce M40’s burdens

The Malaysian government has announced plans to include initiatives in its 2027 budget aimed at reducing the burdens faced by the middle-income or M40 group, as stated by Prime Minister Anwar Ibrahim. This commitment comes after the 2026 budget maintained targeted electricity and fuel subsidies, which Treasury officials noted benefit the middle class, who consume more electricity and fuel compared to lower-income groups.

In addition to the electricity and fuel subsidies, the 2026 budget saw the extension of childcare benefits from six to 12 years, a RM1,000 relief for domestic tourism, and widened stamp duty exemptions for homebuyers. Prime Minister Anwar Ibrahim, speaking to reporters after a 2027 federal budget engagement at the finance ministry's headquarters, emphasized the government's focus on prioritizing items to alleviate the M40 group's financial struggles.

Separately, Anwar clarified that investigations into Tabung Haji (TH) extend beyond the scope of the Royal Commission of Inquiry (RCI) report, which only covered the period from 2014 to 2020. He stated that there is no obstruction to examining TH's management both before and beyond the aforementioned timeframe. Both the enforcement agencies and investigators are currently undertaking this additional inquiry.