SHAH ALAM, Oct 9 — Prime Minister Datuk Seri Anwar Ibrahim tabled Budget 2027, themed “Reaching for the Sky, Rooted in the Earth” (Menggapai di Langit, Mengakar di Bumi), in the Dewan Rakyat today.
The second Budget under the 13th Malaysia Plan (13MP) serves as the country's development framework for 2026 to 2030, focusing on initiatives such as addressing the rising cost of living.
The fifth MADANI Budget also focuses on increasing incomes, strengthening welfare and improving education, healthcare, and transport facilities.
Here are some of the benefits announced:
Cost-of-living assistance
The Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) allocation will increase to RM16 billion.
STR recipients will receive SARA of up to RM150 a month, or RM1,800 a year.
Non-STR recipients aged 18 and above will receive SARA payments of RM100 on two occasions.
SARA can be used to purchase fresh produce at 216 Federal Agricultural Marketing Authority's farmers' markets or traditional markets.
RM750 million will be allocated for 35,000 RAHMAH Sales and MADANI Agro Sales programmes.
Fresh agricultural produce will be 30 per cent cheaper through MADANI Agro Sales.
Wages and workers' incomes
The minimum wage will increase to RM2,000 from June 2027, except for micro, small, and -medium-sized enterprises (MSMEs) with annual sales below RM50 million.
A minimum wage of RM2,500 will be introduced for semi-skilled jobs and graduates.
The living wage benchmark for government-linked investment companies (GLICs) and government-linked companies (GLCs) will increase to RM3,400, benefiting 230,000 workers.
Tax relief and reductions
Individual tax relief will increase to RM12,000.
Income tax on chargeable income between RM70,000 and RM100,000 will be reduced to 18 per cent.
Income tax on chargeable income between RM100,000 and RM150,000 will be reduced to 24 per cent.
Tax relief will be expanded to cover family care, tuition, sports shoes, and artificial intelligence subscriptions.
Five million taxpayers could enjoy additional disposable income of up to RM1,600.
Education and students
Early Schooling Assistance will increase to RM200 for 5.3 million pupils.
A living allowance of RM2,500 will be provided to 90,000 Form Six students.
RM2 billion will be allocated for school maintenance and repairs.
National Higher Education Fund Corporation (PTPTN) loan repayments will be deferred for borrowers earning up to RM2,500.
Minimum PTPTN repayments will be set at RM50 for borrowers earning between RM2,500 and RM3,000.
A 10 per cent PTPTN discount will be offered to borrowers with no arrears who make regular repayments.
Dapur Siswa MADANI will be expanded to polytechnics and teacher education institutes (IPGs), including RM5 meal options.
FLYsiswa flight assistance will increase to RM500.
Public housing
Almost RM1 billion will be allocated for the Rumah Mesra Rakyat and People's Residency programmes.
RM20 billion in financing guarantees under the Housing Credit Guarantee Scheme (SJKP) will be provided for 80,000 first-time homebuyers, particularly the self-employed.
A full stamp duty exemption is proposed for first homes priced up to RM500,000.
For first homes priced up to RM750,000, a full exemption is proposed on the first RM500,000 and a 50 per cent exemption on the remaining amount, for agreements signed between 2027 and 2030.
Senior citizens
Service tax on elderly care services to be reduced to six per cent starting January 2027.
Full service tax exemption on care fees of up to RM96,000 per year
Over RM40 million allocated to train 8,000 elderly care workers
The i-Emas scheme allows Employees' Provident Fund (EPF) members aged 55 and 60 to opt for monthly withdrawals
Disabled persons
Assistance for disabled persons will increase to RM1.5 billion, benefiting more than 300,000 recipients.
Assistance for the care of bedridden disabled persons and chronically ill patients will increase to RM600 a month.
The income eligibility threshold for the Disabled Workers' Allowance will increase to RM2,000.
The allowance for pupils with special educational needs will increase to RM200 a month.
Incentives for special education teachers will increase to RM300 a month.
Specialised skills training will be provided for 3,000 new caregivers for disabled persons.
Health
The Medical Assistance Fund (Tabung Bantuan Perubatan) will increase to RM60 million.
The mySalam scheme will continue.
Free health screenings will be provided through PeKa B40 for STR recipients and their spouses aged 40 and above.
An affordable medical protection plan, MediAsas, will be introduced in January 2027.
The government will acquire a total of 400 new ambulances.
Public transport
The My50 pass will continue for 300,000 Prasarana users in the Klang Valley.
MyKomuter50 will be introduced for 40,000 users, saving them an average of RM160 a month.
Free passes will be provided for school pupils, disabled persons, and children under six.
Gig workers
A RM160 million package with Grab will be introduced to improve workers' incomes and welfare.
Median net income is expected to increase by up to RM227 a month for e-hailing drivers and RM100 a month for delivery riders.
A 35 per cent matching contribution will be provided for Social Security Organisation (SOCSO) contributions, rising to 50 per cent if the platform also contributes.
Matching contributions to the EPF will be provided at up to RM600 a year, or RM6,000 over a lifetime.
RM270 million in financing will be channelled through Bank Simpanan Nasional (BSN) and Agrobank for businesses and first homes.
Paddy farmers and fishermen
RM2.62 billion will be allocated to assist paddy farmers, equivalent to approximately RM4,300 per hectare.
The paddy harvesting incentive will increase to RM100 per hectare per season.
The RM300 ploughing incentive will be maintained.
Subsidised diesel at RM1.65 per litre will continue for eligible fishermen.
The fishermen's cost-of-living allowance of up to RM300 a month will continue.
RM40 million in Agrobank financing will be provided for aquaculture projects.
Small-scale entrepreneurs and women
RM200 million will be allocated under the MADANI Prosperity Grant (Geran Sejahtera MADANI) for equipment and training for 40,000 recipients, particularly women.
Microfinancing will increase to RM6.6 billion.
RM3 billion will be allocated to Amanah Ikhtiar Malaysia to support 360,000 entrepreneurs.
TEKUN financing will increase to RM1.3 billion.
Matching grants of up to RM5,000 will be provided for MSMEs obtaining halal certification for the first time.
Selangor-specific benefits
RM100 million will be allocated for retention ponds and river maintenance to address flash floods in the Klang Valley.
The capacity of the Batu and Klang Gates dams will be assessed to meet requirements over the next 30 years.
The Bandar Serenia Urban School Complex will be built in Sepang.
SJKC Bandar Mahkota Cheras will be built.
Youth and employment opportunities
A target of 30,000 new jobs will be set through Bakat MADANI.
RM8 billion will be allocated for Technical and Vocational Education and Training (TVET) programmes across ministries.
RM3 billion will be channelled through the Human Resource Development Corporation (HRD Corp) to provide three million skills training opportunities.
The Skills Development Fund Corporation (PTPK) will provide RM500 million in financing for trainees at registered skills training institutions.
The Construction Industry Development Board (CIDB) will train 10,000 young people in robotics and digital skills.
MARA will train and place 1,000 Bumiputera youths in high-growth sectors.
AI and digital facilities
An additional 100,000 free AI subscriptions, including ChatGPT, will be provided for young people.
Rakyat Digital and Coursera will offer more than 16,000 free courses and professional certificates.
MDEC will allocate RM30 million to help 4,000 MSMEs adopt AI and automation.
A total of 5,000 AI professionals will be trained and certified.
Youth and community assistance
A RM100 e-wallet incentive will be offered through Budi Belia for eligible volunteer activities.
Residents' Association grants will increase to RM10,000 a year for actively registered neighbourhoods.
The Unity League aims to attract 200,000 participants to traditional sports.
RM27 million will be allocated for school sports, benefiting more than 4.6 million pupils.
Civil servants and pensioners
The total maternity leave entitlement throughout a civil servant's career will increase to 490 days, with a maximum of 98 days per birth.
The minimum pension will increase to RM1,350 a month, benefiting nearly 59,000 recipients.
Allowances for volunteers with the People's Volunteer Corps (RELA), auxiliary firefighters, the police, and Civil Defence Force personnel will increase to RM9 an hour, while supervisors will receive RM10.80 an hour.
A one-off special promotion exercise will benefit 12,000 management and professional officers.
RM2.3 billion will be allocated for the construction and maintenance of civil servants' quarters.
RM20 million will be allocated to improve childcare centres at government facilities.
Special assistance for taxi and school bus drivers
A one-off payment of RM1,000 will be provided to 38,000 taxi or rental car drivers and 15,000 school bus drivers.
Entrepreneurs and small businesses
RM142 million will be allocated to the NADI platform to support young entrepreneurs' online businesses.
RM10 million will be channelled through Jom Malaysia for digital marketing and the export of rural products.
Bank Pembangunan Malaysia Berhad will provide RM1 billion in financing to help MSMEs explore export markets.
Sports and culture
RM240 million will be allocated for preparations for the 2027 SEA Games and ASEAN Para Games.
RM460 million will be allocated for sports development, para-athletes, and sports facilities.
More than RM130 million will be allocated to support the film, music, and creative content industries.
A full entertainment duty exemption will be granted for tickets to local films and theatre productions in the Federal Territories from 2027.
