SHAH ALAM, Oct 10 — Budget 2027 could boost public support not only for the federal government, but also the Selangor administration, although the impact would depend on effective execution, political analysts said.
They said the initiatives announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday addressed the people’s needs while tackling longstanding issues affecting certain groups.
Nusantara Academy for Strategic Research senior fellow Azmi Hassan said cash aid, lower taxes, and incentives for gig workers could improve public sentiment, benefiting the Pakatan Harapan-led federal and Selangor governments.
“The theme of the budget (Reaching for the Skies, Rooted in the Ground) is grounded in reality, but strives to deliver the best for everyone, (including) putting extra cash in people’s hands.
“This extra cash in hand will, I think, help (a) state government, in this case Selangor, face not only the general election but also the state election,” he told Media Selangor.
Yesterday, Anwar announced a slew of initiatives for the people, including the M40 group, whose individual tax relief limit, unchanged since 2010, will be increased to RM12,000 from RM9,000.
The minimum wage will also be increased from RM1,700 to RM2,000 effective June next year, while a new minimum monthly wage of RM2,500 for semi-skilled workers and graduates will be introduced.
Azmi praised Budget 2027 for targeting often overlooked groups like the M40, while continuing to support the most vulnerable Malaysians.
“There are a lot of benefits, not only for the B40 group through Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR), but also for the M40 group through income tax reductions.
“The tax reductions could provide taxpayers with up to RM1,600 in additional disposable income, while a RM160 million incentive package with Grab aims to increase gig workers’ basic or median monthly income by RM200 and support their Social Security Organisation (SOCSO) coverage.”
Delivery is key
Independent political analyst Ganesh@Sree agreed that Budget 2027 gives the government a positive foundation ahead of the next general election, but said announcements alone would not guarantee more votes.
He said the budget addresses the needs of various groups through cash aid, tax relief and other support, with key initiatives including RM16 billion allocated for STR and SARA, nearly RM69 billion for education and RM47.7 billion for healthcare, but their political impact would depend on whether the allocations translate into better public services, as public confidence would ultimately depend on tangible improvements in daily life.
“People don't vote based on how many billions are announced in Parliament. They vote based on whether life has become a little easier, their income goes a little further and their future looks a little brighter,” he said when contacted.
Meanwhile, Ganesh said the planned increase in the minimum wage from RM1,700 to RM2,000 is particularly significant for working Malaysians.
“That’s an additional RM300 a month, or nearly 18 per cent. For someone earning minimum wage, that extra amount can make a meaningful difference when it comes to groceries, transport and household expenses.”
Anwar tabled Budget 2027, the fifth such plan by the Madani Government, in the Dewan Rakyat yesterday.
