Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled Budget 2027 in the Dewan Rakyat on October 9, 2026, presenting a total allocation of RM459.8 billion. It is the fifth Madani Budget and the second under the 13th Malaysia Plan, carrying the theme of reaching for the sky while staying rooted in the ground. Federal operating expenditure is set at RM376.8 billion, and the government projects revenue of RM380.8 billion and a fiscal deficit of about 3.3% of gross domestic product, narrowing from roughly 3.5% to 3.6% this year.
The headline worker measure is a rise in the national minimum wage from RM1,700 to RM2,000, effective June 2027. Individual income tax relief will increase from RM9,000 to RM12,000, a limit last reviewed in 2010, and the government will cut income tax for those earning between RM70,000 and RM150,000. Cash aid under Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) rises to about RM16 billion, with two rounds of assistance in Malaysia’s 70th Merdeka year. Anwar also announced a Special Financial Assistance of RM1,500 for 1.3 million civil servants at Premier Grade B and below, including contract staff. A RM160 million package targets gig workers.
For business, the government will enhance Global Services Hub tax incentives from January 1, 2027, and extend deductions and accelerated allowances for ICT, machinery and manufacturing investments. Small-value asset thresholds for capital allowances rise from RM2,000 to RM3,000. Sabah is allocated RM18.7 billion and Sarawak RM16.2 billion. The government expects the economy to grow between 4.2% and 5.2% in 2027, despite global uncertainty.
Reaction has been mixed. DAP’s Lim Guan Eng called it Anwar’s most reform-minded budget, while analysts noted that the Prime Minister appears mindful of the next general election. OCBC Research said expenditure pressures remain high, including preparations for Visit Malaysia 2026-2027, the 34th SEA Games and the 16th General Election.
What to watch: the committee-stage debate, details on who qualifies for targeted aid, how businesses respond to the wage increase, and the impact of oil prices on subsidies. Check official Ministry of Finance documents for exact eligibility rules.
Sources: Bernama, Malay Mail, The Star, Crowe Malaysia, OCBC Research, The Vibes (October 9–22, 2026). Compiled October 27, 2026.
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