Malaysia budget 2027: PM Anwar spends as he enters final stretch before general election — SkimNews
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- Anwar's government tabled a record RM459.8 billion (S$143.4 billion) Budget 2027 on Oct 9, nearly 10% higher than the RM419.2 billion allocated for 2026.
- Budget 2027 channels over RM80 billion into subsidies, aid, and incentives, including RM16 billion in cash aid reaching 13 million Malaysians, plus a minimum wage rise to RM2,000 (from RM1,700) for businesses with over RM50 million revenue, benefiting about 4 million workers.
- Individual tax relief rises to RM12,000 from RM9,000, and the rate for the RM70,000–RM150,000 bracket drops one percentage point, saving roughly 5 million taxpayers up to RM1,600 each, while a unified 30% rate now applies to all income above RM1 million.
- The fiscal deficit is projected to narrow to 3.3% of GDP (from 3.6% in 2026), funded by higher income tax (RM199.9 billion, up 4.6%) and Sales and Services Tax (up 9.5% to RM73.3 billion).
- Petronas is among state-linked entities targeted to deliver RM58 billion in bumiputera procurement, part of a wider Budget 2027 push that includes RM7.5 billion for bumiputera contractors (nearly double the RM4 billion in 2026) and RM3.5 billion for bumiputera businesses.
- UMNO, backed by PAS, is pushing for snap polls after PH lost three consecutive state elections (Sabah, Johor, Negeri Sembilan); BN's 30 MPs are too few to defeat the budget alone against the government's 119 MPs in the 222-seat chamber.
Why it matters: UMNO and PAS are demanding early elections after PH's three straight state losses, and Budget 2027 reads as a vote-buying document: subsidies, a RM2,000 minimum wage, and bumiputera procurement near-doubled — funded partly by tightening the tax on top earners to a unified 30% above RM1M. Kenanga's quip: 'optimising for the calendar, not the ledger.'
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