KUALA LUMPUR: Below are the highlights from Budget 2027, themed ‘Malaysia MADANI: Reaching For The Skies, While Anchored On Our Values’, which was tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.
The individual tax relief limit has been raised to RM12,000 from RM9,000; it was last revised in 2010
The resident individual income tax rate has been reduced by one percentage point
The taxable income band of RM70,000 to RM100,000 has been reduced to 18 per cent
Taxable income band of RM100,000 to RM150,000 reduced to 24 per cent
The increase in tax relief and reduction in individual tax rates will provide up to RM1,600 in additional disposable income to five million taxpayers
The government has agreed to raise the minimum wage to RM2,000 from RM1,700 effective June 2027, with an exemption for MSMEs with sales revenue below RM50 million
The government will implement reforms to the worker income framework by introducing a minimum wage of RM2,500 per month for semi-skilled jobs and graduates
The government welcomes the commitment by GLICs and GLCs to raise the living wage benchmark to RM3,400 from RM3,100 per month, a move set to benefit 230,000 workers
Budget 2027: The gig economy consultative council will finalise minimum income rates, income formulas, and minimum social protection standards for gig workers in early 2027
Grab has agreed to co-fund a RM160 million package to boost net earnings and improve the welfare of e-hailing and p-hailing workers, starting in 2027
Budget 2027: The government offers a 35% PERKESO matching contribution incentive to e-hailing and p-hailing workers; the incentive increases to 50% if the platform company bears the workers' contribution
The government is offering a 70% PERKESO matching contribution incentive to over 200,000 self-employed individuals across 17 non-mandatory sectors
Government offers EPF matching contribution incentives of up to RM600 per year or RM6,000 over a lifetime to encourage retirement savings for e-hailing and p-hailing drivers
BSN and Agrobank have allocated RM270 million to finance gig workers for starting businesses and purchasing their first homes
Khazanah, InvestPenang establish RM100 million Strategic Investment Fund to support semiconductor and advanced manufacturing companies in early growth stage
A relocation cost tax deduction of up to RM5 million for expenses incurred between Jan 1, 2027 and Dec 31, 2030, is provided to encourage local automotive vendor companies to relocate operations to LuMIC, Automotive Hi-Tech
Government to develop infrastructure in the Chuping Valley Development Area and the NCER Agribio Economic Zone
Budget 2027: Kulim Hi-Tech Park attracts global semiconductor investment to create skilled jobs, business opportunities for Kedahans - PM Anwar
Federal government begins formal negotiations to finalise incentive framework, establish a one-stop investment facilitation centre and identify strategic infrastructure requirements for the Sibu Special Economic Zone in Sarawak
Petronas has begun developing the first 10 acres for affordable housing
The government agrees to provide 50 acres of strategic land worth RM1 billion around KL as a new endowment to the Yayasan Pelaburan Bumiputera, to be developed by PNB
The procurement limit for direct appointments is permitted up to RM200,000, and for quotations, up to RM3 million, for maintenance, repair and facility improvement works for the government
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
PUNB's financing fund increased to RM500 mln from RM350 mln
GLCs and PETRONAS target RM58 billion in procurement from Bumiputera companies
GLICs to invest RM2 billion to empower Bumiputera companies
Budget 2027: RM250 million Ciptawan Fund established by Khazanah and TERAJU to support the growth of bumiputera mid-tier companies
The government will develop a centralised solar park for government buildings with an investment of RM1.5 billion
The 10 Bumiputera Champions Programme will continue with an allocation of RM40 million to develop 15 high-potential companies by 2027
Government will grant a 40 per cent income tax exemption for the years of assessment 2028 to 2030 to shariah-compliant fund management service providers
Prisma Sukuk issuers are eligible for a tax deduction on issuance costs approved by the Securities Commission for the years of assessment 2027 to 2030
Prisma Sukuk issuers are eligible for a tax deduction on issuance costs approved by the Securities Commission for the years of assessment 2027 to 2030
The government has agreed to provide matching grants of up to RM5,000 to MSMEs seeking halal certification for the first time
Government provides grants totalling RM25,000 to empower halal MSMEs in the cosmetics and pharmaceutical sectors
The government and MAHB have allocated RM1.1 billion to upgrade roads in port and airport areas in Kota Kinabalu, Miri, Tawau, Sandakan and Penang, as well as the STOLports in Long Banga and Ba'Kelalan, Sarawak
The government has agreed to reintroduce the variation of price clause specifically to cover increases in diesel and bitumen costs
TNB invests RM15 billion to strengthen the National Grid and ensure the continuity of the nation's electricity supply
UEM Lestra to invest RM1 billion, including in an energy storage project at KLIA and a one gigawatt hybrid energy project in Johor
KWAP's RM1 billion climate fund is being utilised for green projects such as renewable energy and decarbonisation
Tax incentives have been enhanced and extended until Dec 31, 2030 to encourage more companies to transition to green and sustainable technologies
Companies purchasing green technology assets for their own use are eligible for an Investment Tax Allowance of up to 100 per cent
Government provides RM100 million in hybrid financing to assist with oil palm replanting for 4,500 smallholders
As of September, 290,000 smallholders received RM400 a month in subsidy assistance
Govt approves RM1.26 bln for FELDA in 2027 to strengthen finances, maintain roads and provide housing for settlers’ descendants
Economic growth in 2026 is projected to expand between 4.8 and 5.3 per cent
Budget 2027: GDP growth in 2027 is expected to continue expanding between 4.2 per cent and 5.2 per cent
The tax rate for RM150,000 to RM600,000 taxable income bracket will be reduced to 16 per cent, providing up to RM6,000 in additional income to 300,000 MSMEs
Capital allowance threshold raised to RM3,000 per asset, with the claim limit for non-MSMEs increased to RM30,000
Stamp duty is only RM10 for loan agreements made via peer-to-peer financing platforms from Jan 1, 2027 to Dec 31, 2030
Full stamp duty exemption on savings and current account openings from Jan 1, 2027
Microfinancing to rise to RM6.6 bln in 2027
BNM to add RM5 bln in financing for SMEs affected by the West Asia conflic
Total SJPP and CGC loan and financing guarantees to rise to RM57 bln in 2027 from RM50 bln
The NADI platform has been boosted with an allocation of RM142 million to enable more young entrepreneurs to leverage online business
Khazanah’s Jelawang Capital and KWAP’s Dana Perintis to invest RM450 mln in start-ups
RM2.1 billion from the NIMP Fund, KWAP’s Dana Pemacu and Khazanah’s Dana MTC to strengthen mid-sized companies in the E&E, digital, aerospace and medical device sectors
RM270 million allocated to help SMEs, mid-sized companies and social enterprises attract private capital through equity crowdfunding and P2P financing platforms
Income tax exemption extended until Dec 31, 2030, for individual investors via ECF platforms and angel investors funding early-stage technology start-ups
RM41 million to Cradle Fund to implement the Startup Ecosystem Roadmap and for prototype development and commercialisation grants
MTDC’s SemiconStart provides follow-on equity investment to startups in areas such as IC design and advanced packaging
A special tax rate of 5 per cent on income exceeding the base income is set for existing Principal Hub or GSH companies
The GSH company managing the treasury and funds is exempted from withholding tax on interest payments and stamp duty on loan agreements between companies, including activities under the JS-SEZ package
The Reinvestment Allowance is being reviewed, with eligibility criteria and the method of incentive delivery being examined to ensure greater targeting
The Securities Commission Malaysia and Hong Kong regulators have entered into a partnership to facilitate the listing of Malaysian companies' shares on both markets
Full income tax exemption for Malaysian shipping companies extended until the 2036 year of assessment
Stamp duty on loans for purchasing or constructing Malaysian ships is set at a flat rate of RM2,000 for loans up to RM100 million, or RM5,000 for loans exceeding RM100 million
JS-SEZ recorded a total of RM132 billion in investments from 2025 to June 2026
PM Anwar, PM Lawrence Wong will launch the JS-SEZ master plan and blueprint at the end of this year
Trade along the Bukit Kayu Hitam-Sadao corridor reached RM27 billion in the first six months of this year
Government allocates RM459.8 billion for Budget 2027, plus RM50.2 billion in investments from GLICs, public-private partnerships, and Minister of Finance (Inc) firms, bringing the total value of the fifth Madani Budget to RM510 billion
Of the RM459.8 billion, 30.2 per cent is allocated to education, health and defence. - Bernama
