Anwar checks final preparations for Budget 2027

KUALA LUMPUR, Oct 8 — Opposition leader Lim Guan Eng has called on Prime Minister Anwar Ibrahim to include meaningful economic relief in the upcoming Budget 2027, arguing it offers the administration's final chance to resonate with voters ahead of the next general election. Lim suggested increasing the personal income tax relief threshold from the present RM9,000 to RM12,000, citing the 17-year stagnation of this relief limit.

Speaking to reporters in Parliament prior to the official Budget 2027 unveiling, the ex-finance minister emphasized that while the national Budget will be presented in late 2027, its effects will not be felt in time to sway voters within the current term's timeframe. Lim stated that despite his belief in Anwar's ability to present the Budget before Parliament's dissolution, the impact would diminish as it would be considered too late.

He emphasized the necessity of his proposals, warning of potential concerns if the government's benefits remain intangible for the populace. Anwar had previously acknowledged the economic hardships faced by households in a social media post, pledging that the upcoming fiscal strategy would mitigate cost-of-living pressures and promote equitable distribution of economic gains.

The current Malaysian Parliament convened on December 19, 2022, with an automatic five-year term ending in December 2027, necessitating a general election within 60 days unless the Parliament is dissolved earlier. Lim mentioned a typical Cabinet meeting prior to the Budget tabling, noting that last-minute additions have been made in the past.

He proposed boosting personal tax relief from RM9,000 to RM12,000, noting that the threshold has remained unchanged for 17 years and that RM9,000 in 2010 equates to RM12,000 accounting for inflation. Additionally, Lim advocated for a RM1,000 increase in tax relief for education and healthcare expenses to aid middle-class families, and appealed for targeted assistance for eldercare by abolishing the 8% service tax imposed on private old-age homes to alleviate the financial strain on caregivers.