Budget 2027: Childcare group proposes doubling tax relief for daycare fees to RM6,000

KUANTAN, October 1 — The Malaysia Children Daycare Association has suggested that the Malaysian government raise the amount of individual income tax relief for fees paid to registered childcare centres, from RM3,000 to RM6,000 per year, in Budget 2027. Ng Chun Piew, the founder and chairman of the association, also proposed raising the age limit for eligible children from 12 to 18 years.

The proposal aims to alleviate the financial strain on parents, particularly middle-income families, as living costs continue to rise. The increase in tax relief would not only ease the financial burden on families with genuine childcare needs but also encourage parents to choose registered and regulated childcare centres. This proposal could also contribute to the formalization, professionalization, and standardization of the childcare and daycare industry.

Ng expressed hope that the government would consider this proposal when drafting Budget 2027 to provide adequate support to families in need of childcare and daycare services.