Budget 2027 draws positive response from ministers over focus on living costs, wages and public services

Budget 2027 has received positive feedback from Cabinet ministers who appreciated its focus on easing the cost of living, increasing wages, and improving public services. Finance Minister II Datuk Seri Amir Hamzah Azizan stated that these measures were based on feedback gathered during nationwide engagement sessions, particularly addressing concerns over rising living costs and the need for better wages.

Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, tabled the budget, which emphasizes boosting household disposable income and supporting middle-income earners, alongside ongoing economic reforms. The budget includes a minimum wage increase to RM2,000 per month, higher entry-level pay for graduates and semi-skilled workers, tax relief for middle-income earners, and expanded cash assistance programs.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi welcomed the focus on technical and vocational education and training (TVET), highlighting that the RM8 billion allocation would help improve workers' employability by expanding courses in specialized fields, such as robotics. Zahid also praised provisions for higher wages for skilled workers.

The budget has allocated RM47.7 billion for the Health Ministry, addressing staffing shortages and improving medical facilities, including the provision of over 9,000 permanent positions for contract doctors and increased payments for paramedics and nurses. Works Minister Datuk Seri Alexander Nanta Linggi welcomed increased funding for infrastructure and construction projects, including RM350 million for contractors in Sabah and Sarawak.

Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) were increased to RM16 billion, with individual income tax relief raised from RM9,000 to RM12,000.