Kuala Lumpur:Malaysia's Budget 2027, amounting to RM459.8 billion, aims to convert resilient economic growth into tangible benefits for citizens, focusing on improved wages, targeted assistance, fiscal discipline, and a shift towards higher-value industries.
According to BERNAMA News Agency, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim presented the budget in the Dewan Rakyat, detailing allocations that include RM138.85 billion for the Ministries of Education, Health, and Defence. The budget consists of RM376.8 billion for federal operating expenditure and RM83 billion for development, with additional investments from government-linked investment companies, public-private partnerships, and federal statutory bodies, bringing the total to RM510 billion.
Anwar emphasized the importance of ensuring Malaysians live with dignity and aimed for a fairer future. The budget is built on eight foundations, including managing the cost of living, elevating service quality, and maintaining fiscal integrity. Federal revenue is projected to increase to RM380.8 billion in 2027, with a fiscal deficit expected to decrease to 3.3% by 2027.
The budget, themed "Reaching for the Skies, While Anchored on Our Values," is part of the 13th Malaysia Plan, ensuring protection through targeted assistance and improved infrastructure. Anwar described the budget as a national covenant by a responsible government, promising opportunities for all Malaysians to reach their potential.
Taxation changes include raising the individual tax relief threshold to RM12,000 and a 30% tax rate for high-income earners. The government also plans to empower the bumiputera economy with strategic land endowments and investments from government-linked companies, targeting RM58 billion in procurement from bumiputera companies.
To support micro, small, and medium enterprises (MSMEs), the government will reduce the income tax rate for MSMEs and expand financing through Bank Negara Malaysia and other agencies. Anwar also addressed trade issues, proposing new legislative measures to protect local MSMEs from unfair competition in e-commerce.
The government will enhance Global Services Hub tax incentives and launch the Johor-Singapore Special Economic Zone Masterplan with Singapore's Prime Minister. Anwar concluded by emphasizing the government's responsibility to prepare for future generations rather than focusing solely on current expenditures.