Kuala Lumpur:Middle-income earners (M40) will benefit from the 2027 Budget through increased individual tax relief and additional aid under the Sumbangan Asas Rahmah (SARA) MADANI program. The individual tax relief limit is set to rise to RM12,000 from RM9,000, marking the first adjustment in over ten years. Eligible adult Malaysians will also receive RM100 twice next year under the SARA MADANI assistance.
According to BERNAMA News Agency, Treasury Secretary-General Tan Sri Johan Mahmood Merican explained that the government's strategy extends beyond cash assistance for low-income groups. It aims to alleviate financial pressures on taxpayers and middle-income households by enabling eligible taxpayers to reduce their taxable income, thereby increasing their disposable income.
The tax relief scope has been expanded to include postnatal care, children's classes in STEM, arts, languages, and religion, subject to limits. Sports-related tax relief now covers sports shoes up to RM300. Additionally, lifestyle tax relief includes AI software subscriptions, pet adoption expenses from registered centers, and veterinary services for animal vaccination and neutering.
Johan further noted that individuals not receiving targeted cash aid can still benefit from these tax adjustments and other government measures. Moreover, 13 million Malaysians over the age of 18 who are not recipients of the Sumbangan Tunai Rahmah (STR), including the M40 group, will receive SARA MADANI assistance of RM100 twice in 2027, before Aidilfitri and for the 70th National Day.
In the housing sector, first-time homebuyers are eligible for a full stamp duty exemption on properties priced up to RM500,000. For properties costing between RM500,000 and RM750,000, a 50 percent stamp duty exemption applies to the value above RM500,000, subject to conditions.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister, presented Budget 2027, titled "Reaching for the Skies, While Anchored on Our Values." The budget allocates RM459.8 billion, supplemented by investments from government-linked investment companies, public-private partnerships, and federal statutory bodies, bringing the total to RM510 billion. The budget aims to convert economic growth into tangible public benefits through improved wages, targeted assistance, fiscal discipline, and advancement towards higher-value industries.