Khazanah Research praises 2027 Budget's cost-of-living initiatives
KUALA LUMPUR: The 2027 Budget’s move to increase the minimum wage and raise the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah allocation signals the government’s willingness to help families withstand cost-of-living pressures.
The 2027 Budget has taken steps to address cost-of-living challenges by boosting the minimum wage, increasing financial assistance, and supporting key sectors. Khazanah Research Institute (KRI) commended the government's actions, praising the wage increase and allocation to bolster the care economy. KRI also endorsed the proposal to exempt care fees up to RM96,000 annually for the elderly, a significant step towards protecting older persons.
The institute welcomed the allocation of RM47.7 billion by the Health Ministry and RM1.3 billion towards upgrading schools, particularly in Sabah and Sarawak. KRI supported measures to foster the domestic semiconductor and manufacturing industries through funding, tax relief, and human capital initiatives. For micro, small, and medium enterprises, KRI emphasized the importance of better access to financing, digitalization, innovation, and global markets.
KRI ultimately called for continued fiscal consolidation and strengthened energy and food security to shield the economy from external shocks.
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