PUTRAJAYA: Helping middle-income (M40) Malaysians will be a key focus of Budget 2027, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the government is currently looking at a list of measures to further assist the group.
“We have a list of priority areas to ease the burden, including for the M40,” said Anwar, who is also Finance Minister, after attending a Budget 2027 engagement session at the Finance Ministry here yesterday.
Earlier, the Finance Ministry, in its pre-Budget statement, said the M40 remained a central focus of the Madani administration, with various relief measures rolled out since 2023.
The ministry said the first Madani Budget had also focused on middle-income Malaysians.
“Beginning in 2023, the personal income tax rate for resident taxpayers was reduced by two percentage points for every income band above RM35,000 up to RM100,000.
“This reduction provided around 2.4 million taxpayers with up to RM1,300 in additional disposable income,” it said.
Meanwhile, Finance Minister II Datuk Seri Amir Hamzah Azizan said the Budget will be guided by three priorities: raising the ceiling, raising the floor, and strengthening good governance.
Under the “raising the ceiling” agenda, he said the government will strengthen Malaysia’s competitiveness by attracting high-quality investments, boosting productivity, and accelerating the development of strategic industries.
It would also support micro, small and medium enterprises (MSMEs) and start-ups by improving access to financing, digitalisation, innovation and markets.
“This will enable more locally produced goods and services to penetrate global value chains as ‘Made by Malaysia’ products,” he said.
Amir Hamzah said the government would also promote innovation, research and technology commercialisation to drive growth through greater value creation.
On “raising the floor”, he said the government will continue improving public services, particularly in education and healthcare, while strengthening human capital development as a foundation for inclusive economic growth.
He said the government will also work with NGOs, civil society and strategic partners to deliver social assistance, particularly to vulnerable groups.
“This cooperation is important in strengthening the social protection network so that no group is left behind in the country’s development,” he said.
On good governance, Amir Hamzah said the government will strengthen the local business ecosystem by improving regulations, facilitating investment, digitalising public service delivery, and reduce bureaucratic red tape.
He also urged stakeholders to submit constructive views and proposals for consideration in the formulation of Budget 2027.
Budget 2027, expected to be tabled in Parliament on Oct 9, will be the fifth Madani Budget. It aims to cushion living costs, expand social safety nets, bolster economic competitiveness and improve fiscal sustainability.
About 400 representatives from stakeholder groups, industry, NGOs and academia attended the engagement session.
