‘Belanjawan pilihan raya’, kata pakar ekonomi

Malaysian economic experts have labeled the 2027 budget as a "budget of choices" featuring cash handouts, subsidies, and tax breaks, but some details are hindered by low wages, aid disparities, and high government spending. Sunway University's Kim Leng said the budget focuses on reducing living costs and stimulating the economy in the short term.

The increase in cash handouts and subsidies aimed at providing immediate relief and short-term stimulation demonstrates the characteristics of a choice budget, Leng told FMT. The raise in individual income tax assessment from RM9,000 to RM12,000 will also provide more money to save for the lower-income class. However, UM's Ahmed Razman Abdul Latiff said the effectiveness of the budget needs to be evaluated on how much it can boost household income and ensure aid reaches those who truly need it.

Latiff noted that while aid is expanded, it might not be enough for households facing high living costs or additional caregiving responsibilities. Latiff also raised questions about the government expenditure management, which accounts for nearly 82% of the total RM460 billion budget, leaving development spending at RM83 billion.

He stressed that the success of the budget should not be measured solely by the amount of aid announced, but rather how much aid reaches the targeted group and how economic growth generates more jobs and better income. In the 2027 budget, the government announced a RM150 monthly increase in the Basic Needs Assistance (SARA) for up to nine million beneficiaries.

The government also allocated RM1.3 billion to help nearly 200,000 high-income individuals. However, Universiti Sains dan Teknologi Malaysia's Barjoyai Bardai said while the budget addresses urgent issues like healthcare, high-income group aid, and contract doctor assistance, efforts to address low wages are still insufficient. Bardai pointed out that raising the minimum wage to RM2,000 starting next June is still not enough, with local workers needing wages between RM2,300 to RM2,400 to cover living costs.

"Efforts to encourage private sector and government-linked companies to raise wages are present, but it's not mandatory. The M40 group and middle-income earners might continue to lag behind. Lowering income tax rates or increasing tax relief can help ease their financial burden," Bardai said.