Malaysia budget 2027: Five things you need to know — SkimNews
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- Malaysia tabled a RM459.8 billion budget for 2027, with Prime Minister Anwar Ibrahim emphasizing dignity and fairness as central measures of economic policy.
- Anwar Ibrahim announced the minimum wage will rise to RM2,000 by June 2027, benefiting over four million workers, while micro and small businesses are temporarily exempted.
- The government will increase individual income tax relief from RM9,000 to RM12,000 and reduce tax rates for middle-income earners, delivering up to RM1,600 in extra disposable income for five million taxpayers.
- Sabah and Sarawak will receive RM18.7 billion and RM16.2 billion respectively in federal allocations, marking continued prioritization under negotiations tied to the Malaysia Agreement 1963 (MA63).
- The government will jointly fund a RM160 million package with Grab to support 600,000 gig workers through higher income guarantees, vehicle maintenance aid, and insurance assistance starting next year.
- AI Malaysia Bhd will receive nearly RM15 million to strengthen ethical AI development, as the government expands free ChatGPT subscriptions to 100,000 more young people and plans a sovereign AI cloud.
Why it matters: Middle-income workers, gig drivers, and East Malaysian states gain direct financial support, while the push for AI capacity and fiscal discipline reflects a dual focus on modernization and macroeconomic stability—balancing expansionary spending with a projected drop in the deficit to 3.3% by 2027.
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