Read more on Malaysia's Budget 2027 and economic outlook here.
Follow our live coverage of Budget 2027 as Prime Minister Datuk Seri Anwar Ibrahim tables it. Refresh for updates:
- Commercial vehicles will be required to install telematics systems — tracking speed, location, and pre-trip alcohol interlocks — with voluntary adoption running until 2027 while an enforcement database is built
- Drunk or drug-impaired drivers will have to pay direct compensation to their victims, under an amendment to the Road Transport Act
- Paddy farmers to receive about RM4,300 per hectare under a RM2.62 billion aid allocation
- TNB to invest RM15 billion to strengthen the national grid and ensure the continuity of the nation's electricity supply
- GLC procurement guidelines to be updated from 2027, with vendor success measured by company growth, innovation, and new market entries
- The price adjustment clause will be reinstated to cover rising diesel and bitumen costs for construction contractors
- Khazanah and Teraju to establish a RM250 million Dana Ciptawan to support the growth of Bumiputera mid-sized companies
- The government will procure 42 new train sets for Electric Train Service (ETS) and KTM Komuter services
- Licensing for private healthcare facilities will be 100% online starting 2027 via the newly developed e-CKAPS portal, targeting up to a 65% cut in processing times
- The FLYsiswa flight ticket subsidy will be increased to RM500 in 2027, benefitting 60,000 public university students
- Private hospital bills to use standardised charge categories starting 2027 to curb price distortions, while the use of electronic medical records will be expanded nationwide under the 'one individual, one record' principle
- GLCs and PETRONAS target RM58 billion in procurement from Bumiputera companies
- My50 retained for 300,000 Prasarana users in the Klang Valley, with MyKomuter50 introduced for 40,000 KTM Komuter users
- 40% tax exemption for shariah-compliant fund management service providers for assessment years 2028 to 2030
- Prisma Sukuk issuers to be eligible for a tax deduction on issuance costs approved by the Securities Commission Malaysia for years of assessment 2027 to 2030
- KWAP to invest RM750 million in student housing at six universities under Vista Kampus
- PTPTN borrowers earning up to RM2,500 a month will qualify for a repayment deferment next year, while those earning RM2,500 to RM3,000 will pay a minimum monthly instalment of just RM50
- RM870 million for the Supplementary Food Plan (RMT)
- Form Six students to get a RM2,500 living allowance for first time in history, matching the matriculation rate
- School aid to be raised to RM200 per pupil from RM150, benefitting 5.3 million students. Overall, they get an allocation of RM1 billion
- The MediAsas insurance plan will be launched in January 2027. EPF members under 55 can pay MediAsas premiums through Account Sejahtera. SMEs with fewer than 75 employees will receive a RM200 subsidy per worker for the first-year premium, capped at 50 employees per company, benefitting up to 200,000 workers
- In recognition of 47,000 paramedics and nurses handling heavy fieldwork duties, the post-basic incentive allowance rate will be increased from RM100 to RM200 monthly
- 3,500 additional classrooms are being built using the industrialised building system ahead of higher Year One intake
- RM1.3 billion allocated to upgrade 682 dilapidated schools, particularly in Sabah and Sarawak
- The national school allocation goes up to RM900 million. Chinese schools get RM100 million, and Tamil schools RM50 million. For religious schools, the allocation for tahfiz and pondok institutions is raised to RM200 million, expanded to cover operating aid
- The Education Ministry continues to receive the largest allocation at nearly RM69 billion, up from RM66.2 billion
- RM1.2 billion allocated to upgrade and repair public health facilities
- The government is committed to offering permanent medical officer positions to future doctors who complete housemanship
- More than 9,000 contract doctors to be offered permanent posts in 2027
- Teraju to provide financing of up to RM1 billion, while its capacity will be strengthened to enable more effective monitoring of Bumiputera projects across all departments, agencies and companies
- The monthly allowance for special needs education students to be raised from RM150 to RM200, benefitting 150,000, including children with autism
- The income qualification threshold for the Allowance for Working Disabled Persons (EPOKU) has been raised from RM1,700 to RM2,000
- Federal allocations for Sabah and Sarawak to remain the highest in 2027 at RM18.7 billion and RM16.2 billion respectively
- Allocation for the Health Ministry to rise to RM47.7 billion from RM46.5 billion
- Air health service incentive payment more than triples to RM100
- Senior citizen aid for next year raised to RM1.3 billion, benefitting nearly 200,000 recipients
- Total assistance for orang kurang upaya raised to RM1.5 billion
- Allocation for elderly assistance to be increased to RM1.3 billion next year, benefitting 200,000 recipients
- More than RM40 million to be channelled through HRD Corp to train 8,000 workers in elderly care
- Service tax on elderly care services to be cut to 6% from 8%, effective Jan 1, 2027
- Bankruptcy threshold raised to RM150,000 from RM100,000 starting 2027
- RM445 million allocated for Orang Asli development, including for replanting and preschool projects
- 50 acres of prime Kuala Lumpur land worth RM1 billion to be granted as new endowment to Yayasan Pelaburan Bumiputra for PNB to develop affordable housing and advance Bumiputera economic interests — the first such grant since 1981
- MSMEs can get up to RM5,000 in matching grants for their first halal certification
- Over 10,000 small traders renting DBKL premises — including markets, food courts, and hawker centres — will get a 50% rental discount throughout 2027, with festive bazaar fees starting as low as RM400
- Allocation for Chinese New Village infrastructure repairs increased to over RM100 million, including funds to repair and rebuild dilapidated infrastructure
- GLICs to invest RM2 billion to strengthen Bumiputera companies; Ekuinas, Pelaburan Hartanah to support Bumiputera listings
- At least 2,500 Rumah Madani units planned in Belfield, KL, with 70% earmarked for Bumiputera
- Full stamp duty exemption for developers and buyers of abandoned housing projects from 2027 to 2030
- The government will develop infrastructure in the Chuping Valley Industrial Area and the NCER AgriBio Economic Zone
- Syarikat Jaminan Kredit Perumahan (SJKP) to provide up to RM20 billion in housing financing guarantees to help 80,000 first-time homebuyers, particularly self-employed individuals without fixed income
- GLICs, GLCs to provide RM100 million in matching grants, including support for childcare
- RM100 million allocated to develop retention ponds and maintain rivers to reduce flood risks in the Klang Valley
- RM80 million allocated for maintenance of registered non-Muslim houses of worship
- First-time homebuyers to get full stamp duty exemption for homes up to RM500,000, and 50% exemption for homes priced above RM500,000 and up to RM750,000, for sale and purchase agreements signed from 2027 to 2030
- RM5 billion allocated under the Jendela project for internet connectivity expansion, targeting orang Asli villages, roads, and rail
- About RM1 billion to go to Program Residensi Rakyat and Rumah Mesra Rakyat
- The government agrees to implement the Elevated Autonomous Rapid Transit (E-ART) system in Johor Bahru. It will also increase stage bus routes and frequencies, increase KTM Komuter frequency, and provide Grab shuttle services in high-traffic hotspots ahead of the RTS Link opening
- RM3.3 billion allocated for basic rural infrastructure, including for clean water and electricity
- Higher allocation of RM2.3 billion for rural road development
- Entertainment duty exemption for arts, cultural, entertainment and sporting events at Stadium Negara and Stadium Merdeka
- To strengthen social protection, every citizen will be automatically registered as an EPF member upon turning 18 so that retirement savings can start earlier
- MA63: The interim special grant for Sabah and Sarawak will be raised to RM1.5 billion, with payment settled before the end of the year
- BSN and Agrobank to provide RM270 million in financing for gig workers looking to start businesses or buy their first homes
- To encourage retirement savings among e-hailing and p-hailing drivers, the government is offering an EPF matching contribution incentive of up to RM600 per year or RM6,000 over a lifetime
- The government will fully regulate the p-hailing sector under the APAD and LPKP
- Socso tax relief expanded to cover mandatory contributions to the Lindung Kendiri scheme, with additional relief of up to RM150 for voluntary contributions to Lindung 24 Jam and Lindung Kendiri
- Khazanah Nasional Bhd and InvestPenang to establish a RM100 million fund for semiconductor and advanced manufacturing firms
- Beyond e-hailing and p-hailing riders, the government will cover 70% of Socso contributions for over 200,000 self-employed individuals across 17 non-mandatory sectors
- RM100 million set aside for Klang Valley flood mitigation
- Investment activity is likely to remain robust, with private investment projected to expand 7.1% in 2027 and public investment to grow 6.8%
- GLICs and GLCs to raise the living wage benchmark to RM3,400 per month from RM3,100, benefitting 230,000 workers
- Putrajaya to offer a 35% Socso matching contribution incentive to e-hailing and p-hailing workers; the rate will be increased to 50% if platform companies also co-fund contributions for the workers
- The government and Grab will jointly fund a RM160 million package from 2027 to boost net earnings and improve welfare of e-hailing and p-hailing workers
- The increase in tax relief and reduction in individual tax rates to provide an additional disposable income of up to RM1,600 to roughly five million taxpayers
- MSMEs with annual sales below RM50 million to be exempt from the RM2,000 minimum wage policy
- Putrajaya to introduce a minimum monthly salary of RM2,500 for semi-skilled workers and graduates as the initial step in reforming the wage framework
- Government revenue is estimated to increase 4.7% to RM380.8 billion in 2027, with PETRONAS dividends expected to contribute RM32 billion, higher than 2026's estimate of RM27 billion.
- Individual tax reliefs to be expanded to cover medical expenses, care for parents and grandparents, sports equipment, education and skills training, and lifestyle expenses
- The income tax rate is set at 30% for earners above RM1 million
- The fiscal deficit is likely to further narrow to 3.3% of GDP in 2027 from the estimated 3.6% in 2026, with consolidation calibrated to economic conditions and anchored by sustainable revenue improvements and expenditure efficiency
- The individual income tax rate for residents to be reduced by one percentage point; the taxable income bracket between RM70,000 and RM100,000 to be reduced to 18%; and the taxable income bracket between RM100,000 and RM150,000 to be reduced to 24%.
- The minimum wage will be raised to RM2,000 from RM1,700 starting June 2027
- Up to 13 million Malaysians, including M40, to receive two RM100 Sara payments
- The individual tax relief limit, which has not been reviewed since 2010, is increased from RM9,000 to RM12,000
- Higher operating expenditure representing 16.2% of GDP due to higher allocations for emoluments, retirement charges, debt service charges as well as supplies and services
- Jualan Rahmah Madani and Jualan Agro Madani allocation will rise to RM750 million next year from RM630 million
- The largest development expenditure allocation will be for the economic sector with 45.4%, followed by social (33.7%), security (14.7%) and general administration (6.2%)
- All STR recipients to receive Sara of up to RM150 monthly, to benefit up to nine million people
- Government priority remains focused on driving high-value economic growth, enhanced productivity and greater inclusivity, in line with the nation’s aspiration to become one of the world's top 30 largest economies
- STR, Sara allocation raised to RM16 billion in 2027 from RM15 billion
- Malaysia's economy is projected to expand by a commendable 4.2%-5.2% in 2027, from 4.8-5.3% this year, with private consumption remaining a key growth driver
- Fuel subsidies to remain high at RM40 billion
- Subsidies, assistance, incentives to exceed RM80 billion in 2027
- Budget 2027 is a national promise to aim high while staying grounded, built on eight core pillars
- Prime Minister Datuk Seri Anwar Ibrahim begins his Budget 2027 speech
Print
Text Size
Share