Budget 2027: Relief for caregivers as service tax for older citizens’ care reduced, new tax exemptions and increased financial aid announced
KUALA LUMPUR, Oct 9 — The service tax rate for elderly care services will be reduced from eight to six per cent, s...
On October 9, the Malaysian government announced several financial measures aimed at easing the burden on elderly citizens and their caregivers under Budget 2027. Service tax rates for elderly care services are set to decrease from eight percent to six percent, beginning January 1, 2027. Additionally, a complete exemption from care fees will be provided for amounts up to RM96,000 annually.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim revealed these updates during the presentation of the Budget 2027 at the Dewan Rakyat. The government will also boost financial aid for senior citizens by RM1.3 billion in the coming year, reaching roughly 200,000 beneficiaries.
Anwar added that the government intends to draft a Senior Citizens Bill to address neglect of the elderly and enhance the overall care ecosystem. The allocation for training 8,000 individuals in the elderly care sector under the Human Resources Development Corporation (HRD Corp) will amount to more than 40 million ringgit. Furthermore, two National Integrated Care Centres of Excellence (NICE) will be established in Penang and Sarawak to foster training, research, and elderly care initiatives.
EPF members aged 55 and 60 will now have the option to make monthly withdrawals under the i-Emas scheme, allowing their remaining savings to continue generating dividends.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
