2027 Budget: Here are the key announcements
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim today tabled the fifth Madani Budget in the Dewan Rakyat, reaffirming the government’s commitment to ensuring national progress benefits every Malaysian through improved living standards, protected livelihoods and the opportunity to live with dignity.
On May 8, 2027, Malaysia's Prime Minister Datuk Seri Anwar Ibrahim unveiled the fifth Madani Budget, emphasizing the government's dedication to equitable national advancement through enhanced living standards, stabilized livelihoods, and a dignified existence for all Malaysians. The budget's total allocation increased to RM510 billion from RM470 billion, with several key announcements made.
The budget emphasized wage improvements, with the minimum wage rising to RM2,000 effective June 2027, and a RM2,500 rate for semi-skilled workers and graduates. The living wage benchmark for GLICs and GLCs was also raised to RM3,400 per month, affecting 230,000 workers. Individual income tax relief was increased to RM12,000, and tax rates were reduced for two income brackets, lowering taxes for those earning between RM70,000 and RM150,000.
The budget also allocated RM16 billion for STR and Sara assistance, with STR recipients receiving up to RM150 monthly. Individuals who do not receive STR will receive RM100 in Sara assistance before Hari Raya Aidilfitri and during Malaysia's 70th Independence Day celebrations. The government introduced a RM160 million package for gig workers, covering minimum income, maintenance, insurance, and Socso contributions.
Automatic EPF registration at age 18 was proposed, and housing financing guarantees of RM20 billion were announced for first-time homebuyers.
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