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

KUANTAN, Oct 1 — The Malaysia Children Daycare Association has suggested that the Malaysian government raise the amount of individual income tax relief for daycare fees from RM3,000 to RM6,000 per year for the Budget 2027. The proposal was put forward by the association's founder and chairman, Ng Chun Piew, in an attempt to ease the financial strain on parents due to rising living costs.

Ng specifically targeted middle-income (M40) families, who continue to require after-school care and supervision for their children after they enter secondary school. In his statement, Ng emphasized that increasing the applicable tax relief would alleviate the financial burden on families with genuine childcare and daycare needs while simultaneously encouraging parents to choose registered and regulated daycare centres.

He further hypothesized that the proposed increase could contribute to the formalization, professionalization, and standardization of the childcare and daycare industry. Ng expressed hope that the Malaysian government would take into consideration this proposal during the drafting of Budget 2027, in order to provide more families with the necessary support for their childcare and daycare needs.