Malaysia proposes record 2027 budget with more aid and tax relief

Malaysia’s Prime Minister and Finance Minister Anwar Ibrahim presented the 2027 budget in parliament on October 9.

It proposes 459.8 billion ringgit in federal spending, a record amount, with more support aimed at easing the cost of living.

Cash aid worth 16 billion ringgit is planned for 13 million people, including middle-income earners, and individual tax relief would increase.

The budget also proposes raising the minimum wage to 2,000 ringgit a month from June 2027 for workers at businesses with more than 50 million ringgit in annual revenue.

Fuel subsidies will remain, while the government expects economic growth to slow and inflation to rise in 2027.

It forecasts a smaller budget deficit of 3.3% of gross domestic product, down from 3.6% in 2026.

The next general election must be held by February 2028.