Accra:The 2027 Budget, themed 'Reaching for the Skies, While Anchored on Our Values', highlights government initiatives to combat the rising cost of living. It includes measures such as increased incomes, tax relief, and direct financial assistance to households.
According to BERNAMA News Agency, Associate Professor Dr. Mohd Khairie Ahmad from Universiti Utara Malaysia emphasized that the budget also strengthens support systems across home ownership, transportation, and healthcare. Prime Minister Datuk Seri Anwar Ibrahim announced these key measures in the Dewan Rakyat, with benefits expected to commence in January 2027.
Dr. Mohd Khairie explained that the budget tackles the disparity where incomes have not been keeping up with rising expenses. Notably, the minimum wage is set to increase from RM1,700 to RM2,000 starting June 2027, benefiting over four million workers. Additional measures include setting a RM2,500 minimum wage for semi-skilled jobs and graduates, while government-linked companies have raised the living wage benchmark to RM3,400.
For gig workers, the budget anticipates higher median net monthly incomes, with e-hailing drivers and p-hailing delivery riders seeing increases of RM227 and RM100, respectively.
Taxation changes are also part of the budget, with adjustments in tax reliefs and rates potentially providing up to RM1,600 in extra disposable income for approximately five million taxpayers. The individual tax relief is increased from RM9,000 to RM12,000, and the tax rate for incomes between RM70,001 to RM100,000 is lowered to 18 percent, while incomes between RM100,001 to RM150,000 face a 24 percent rate.
Expanded tax reliefs now cover postnatal care, care for parents and grandparents, education fees, sports shoes, and selected lifestyle expenses.
The budget allocates RM16 billion for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programs, benefiting nine million recipients. Additionally, citizens aged 18 and above who are not STR recipients will receive two RM100 SARA MADANI payments, including those from the middle-income group.
Dr. Mohd Khairie underscored the importance of effective communication from the government to ensure the public is aware of and understands how to access these initiatives. He suggested that translating government language into more straightforward terms could help households better grasp the available assistance.