Belanjawan 2027: Fokus simpanan persaraan M40, kata persatuan

Perdana Menteri Anwar Ibrahim said the 2027 budget will focus on initiatives to reduce the M40 debt burden, according to a recent report. Meanwhile, the Malaysian Accountants Association (Mata) emphasized that the focus on M40 debt reduction should be directed towards strengthening the general savings, according to its deputy president, Fairuz Abdul Razak.

Razak highlighted that the RM650,000 savings target by the age of 60, based on the standard KWSP savings rate, is still achievable by only around 36% of formal sector employees. She argued that a more significant immediate action is needed, as tax reliefs only benefit those who have already spent or saved money. Razak proposed introducing formal sector savings incentives, such as the i-Saraan scheme, alongside progressive additional tax reliefs for M40, as well as a "save first, spend later" mechanism to provide better tax service for continuous income added to the long-term retirement account.

She cited Singapore's 37% CPF contribution and Australia's mandatory 12% superannuation as examples. Ahmed Razman Abdul Latiff from Putra Business School supports increasing support for M40 but stressed any tax relief changes should be implemented gradually and offset by cutting subsidy benefits. He noted that such measures could positively impact the domestic economy through increased housing expenditure, which would circulate back to the domestic market through consumption, services, and domestic travel.

Private sector employee Soh Kien Ching, 34, also urged the government to reconsider the RM9,000 basic tax relief, which has remained unchanged since 2010, as one-off relief is not enough; a sustainable solution is needed to lower monthly financial burdens.