Kuala Lumpur:The government has unveiled Budget 2027, emphasizing the reduction of cost-of-living pressures while fostering a fair and resilient future for the nation.
According to BERNAMA News Agency, Prime Minister Datuk Seri Anwar Ibrahim presented the budget in the Dewan Rakyat, describing it as a 'National Covenant' aimed at ensuring national progress translates into an improved standard of living. A significant feature of the budget is the increase in the minimum wage from RM1,700 to RM2,000, effective June 2027.
The budget, themed 'Reaching for the Sky, Rooted in the Ground,' is structured around eight key pillars. It allocates over RM80 billion for subsidies, assistance, and incentives, with fuel subsidies alone expected to reach RM40 billion. The Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) allocations have been increased to RM16 billion, benefiting up to nine million recipients.
Additionally, Malaysians aged 18 and above who are not STR recipients will receive RM100 SARA MADANI aid twice a year, benefiting 13 million citizens, including the M40 middle-income group. The MADANI Rahmah Sales and Agro Sales programs will expand, with their allocation increased to RM750 million.
Efforts to increase income also include setting a minimum starting salary of RM2,500 for semi-skilled jobs and graduates. To support the middle-income group, the government will raise the tax relief limit and reduce tax rates.
The welfare of gig workers will be addressed with measures such as setting minimum income rates and expanding social protection. Vulnerable groups, including senior citizens and persons with disabilities, will receive increased assistance.
The Education Ministry remains a priority, with an allocation of nearly RM69 billion, including increased Early Schooling Aid. Loan repayment relief for National Higher Education Fund Corporation (PTPTN) borrowers is also part of the budget.
Public transport will be promoted through the introduction of the MyKomuter50 pass. Amendments to the Road Transport Act are proposed to address fatal accidents caused by drunk drivers.
Security and defense allocations include RM22 billion for the Home and Defence Ministries, with funds designated for border and cyberspace security. The local film and creative sectors will receive over RM130 million in support.
The budget allocates RM240 million for hosting the 2027 SEA Games and ASEAN Para Games. Tourism and culture will receive RM935 million, with efforts to extend the Visit Malaysia campaign.
Islamic affairs funding will see an increase, with additional support for KAFA Islamic education teachers. Social Security Organisation contributions for religious workers will be covered by Tabung Haji.
As part of the MADANI reform agenda, the Government-Owned Entities Bill is proposed to improve governance and prevent past financial controversies. Anwar also announced increased allocations for civil servant quarters and volunteer allowances.
The budget includes changes to maternity leave entitlements and childcare center upgrades. The minimum pension will be raised, benefiting pensioners and veterans. Special Financial Assistance of RM1,500 will be provided to civil servants, with payments made before Aidilfitri and Malaysia's 70th independence anniversary.
Overall, the budget mobilizes RM510 billion in resources, with significant allocations for operating and federal development expenditures, alongside contributions from investment companies and partnerships.