Politics · Other · 1 day ago
Malaysia plans higher minimum wages and tax cuts in 2027 budget
Malaysia’s Prime Minister Anwar Ibrahim has proposed a 459.8 billion ringgit budget for 2027, larger than this year’s budget.
The plan includes raising the monthly minimum wage from 1,700 to 2,000 ringgit from June next year, with a temporary exception for some small businesses.
It also offers tax relief for individuals and a 160 million ringgit support package for ride-hailing drivers and couriers, funded with Grab.
The measures are intended to boost household incomes and help small businesses as living costs weigh on workers.
They come amid pressure on government finances from rising global oil prices and political challenges ahead of elections.
Malaysia expects its economy to grow by 4.2% to 5.2% in 2027.
Malaysia has proposed a 2027 budget worth 459.8 billion ringgit, including higher minimum wages and tax relief.
The monthly minimum wage is set to rise from 1,700 ringgit to 2,000 ringgit starting in June 2027.
Micro, small and medium-sized businesses with annual revenue below 50 million ringgit will be temporarily exempt from the new minimum wage.
The plan also raises individual income tax relief and includes a 160 million ringgit support package for gig workers.
- Who
- Malaysia’s government, led by Prime Minister Anwar Ibrahim.
- What
- It proposed a 2027 budget with higher minimum wages, tax relief and support for gig workers.
- When
- The budget was announced on October 10, 2026. The minimum wage increase is due to start in June 2027.
- Where
- Malaysia.
- Why
- The measures are intended to raise household incomes, support small businesses and ease cost-of-living pressures.
This story does not have two clearly opposing sides.
Our question is not only how the economy is built, but whether its growth will create room for families to build savings, workers to enjoy more dignified wages, and small businesses to keep growing
The Madani government will safeguard the welfare of gig workers by providing more comprehensive protection
Malaysia announced its proposed 2027 budget, including wage increases and tax relief.
The minimum monthly wage is scheduled to rise from 1,700 ringgit to 2,000 ringgit.
- Proposed 2027 budget
- 459.8 billion ringgit
- Minimum wage
- 2,000 ringgit per month from June 2027, up from 1,700 ringgit
- Temporary exemption
- Businesses with annual revenue below 50 million ringgit
- Gig-worker support
- 160 million ringgit
- Individual income tax relief limit
- Raised from 9,000 ringgit to 12,000 ringgit
Sources
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