A commitment to fiscal discipline and deficit reduction
LETTER: The total of RM510 billion allocated for 2027 budget shows the government is really listening to the concerns of the people while also confronting great external challenges in the form of uncertain global economic outlook as well as the on-going Middle East crisis.
The Malaysian government's 2027 budget demonstrates a commitment to fiscal discipline and deficit reduction, addressing both internal concerns and external challenges. The RM510 billion total allocation reflects the government's responsiveness to public concerns while navigating global uncertainties, such as the global economic outlook and the ongoing Middle East crisis.
Significant increases in the minimum wage, raising it to RM2,000 and starting wages for graduates and semi-skilled workers at RM2,500, aim to alleviate financial burdens for workers. MSMEs are excluded from this increase, acknowledging their unique challenges amid the energy crisis caused by the Iran conflict. Taxpayers, particularly middle-income households, benefit from increased individual tax relief, reaching RM12,000 from RM9,000.
The scope of tax relief has expanded, covering various expenses such as postnatal care, tuition fees, and pet-related costs. The budget allocates RM80 billion for subsidies and assistance, crucial for cushioning households against rising oil prices and living costs. The Budi Madani RON95 stabilizes retail oil prices with a 300-litre monthly quota, while Budi Diesel offers up to 400 litres to mitigate the impact of high global crude oil prices.
The STR and SARA schemes are expanded, providing monthly assistance up to RM150 for recipients and RM200 for non-recipients. The government's fiscal deficit target of below three percent by 2028 remains intact, indicating a dedication to fiscal prudence amidst the budget's comprehensive measures to ease the financial strain on Malaysians, especially those in the sandwich generation living in urban areas.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
