From student hunger to bigger Sara aid, what could Budget 2027 have in store for Malaysians?

In the upcoming Budget 2027, Malaysia's Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, will present a plan addressing key priorities. With geopolitical uncertainties and cost-of-living pressures in mind, this year's budget may signal a significant election-year spending effort. The government aims to boost national growth, improve living standards, and enhance governance through 10 focus areas, including social justice, cost-of-living relief, social protection, education, healthcare, and cyber security.

One potential measure in Budget 2027 is increased cash assistance under the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) schemes. Anwar has already announced record allocations for these schemes in Budget 2026, with about nine million recipients expected to benefit. Another focus could be tackling student hunger on university campuses after Anwar's acknowledgement of students struggling to afford daily meals.

The government has allocated RM26.9 million for Dapur Siswa Madani and campus food-bank programmes under Budget 2026, with a proposed additional RM15 million in Budget 2027.

Wage growth may also be a topic under discussion, with Anwar noting stagnant wages despite increased productivity. A proposed increase in the minimum wage from RM1,700 to RM2,000 could feature in the budget, as wage compression is preventing many workers from enjoying progressive wage increases. Moreover, the government's aim to raise the minimum wage to RM3,000 by 2030 under the 13th Malaysia Plan could be part of Budget 2027.

Small traders and entrepreneurs may receive more support under Budget 2027, following Anwar's promise to provide higher allocations for these groups. Additionally, discussions about a GST-SST hybrid tax model have been ongoing, with Anwar directing the Finance Ministry to study the idea in detail. While no timeline has been announced for a decision, the hybrid model could draw lessons from Malaysia's previous GST experience while addressing challenges under the existing SST system.

Lastly, the defence budget may see an increase, with Anwar pledging to boost spending, including funding for asset procurement, living quarters upgrades, a new hospital, and maintenance of basic facilities.