Zahid happy M40 group will benefit from higher tax relief limit

Deputy Prime Minister Ahmad Zahid Hamidi expressed satisfaction that micro, small and medium enterprises with annual sales under RM50 million will be exempted from the RM2,000 minimum wage rule in the 2027 budget. The budget, announced in the Dewan Rakyat, reflects the government's commitment to addressing the concerns of the middle-income (M40) group. Zahid noted that the M40 group has been under significant pressure due to high expenditure commitments, with their income surplus and purchasing power being strained.

In the 2027 budget, the individual tax relief limit will be raised from RM9,000 to RM12,000, a change that has remained stagnant since 2010. This increase will benefit the M40 group. Additionally, the minimum wage is set to increase to RM2,000 from June 2027, with an exemption for micro, small and medium enterprises with annual sales below RM50 million. Zahid also highlighted that graduates and skilled workers will receive premium wages.

The budget emphasizes the importance of increasing national exports, which relies on the growth of micro, small and medium enterprises and enhancing the skills of local entrepreneurs. Zahid, who serves as the rural and regional development minister, commended the RM12.68 billion allocation for the ministry next year, marking a 2.27% increase from the current year's RM12.40 billion.