Malaysia to raise minimum wages, expand tax relief in spending boost for 2027 budget
Malaysia Prime Minister Anwar Ibrahim on Friday (Oct 9) pledged to implement reforms that he said would allow the country's strong economic growth to trickle-down to ordinary Malaysians.
Malaysia's Prime Minister Anwar Ibrahim announced a budget of RM459.8 billion (US$112.5 billion) for 2027, pledging to implement reforms to ensure economic growth benefits ordinary Malaysians. The budget, higher than the RM444.1 billion allocated in 2026, includes tax relief measures, minimum wage increases, and support for small businesses.
The minimum wage will rise to RM2,000 from June 2027, while semi-skilled workers and graduates will receive a minimum starting salary of RM2,500 per month. The government also proposed expanding individual income tax relief from RM9,000 to RM12,000 and reducing tax rates for selected income brackets. Additionally, the budget aims to provide a RM160 million tax relief package to gig workers through a partnership with ride-hailing company Grab.
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