Budget 2027's RM80bil in aid, subsidies to help cushion living costs, say experts
Malaysia's Budget 2027 allocates over RM80 billion in subsidies and cash aid to help citizens manage rising living costs and inflation. Economists suggest these measures should be paired with long-term productivity and skills training to ensure sustainable financial independence.
Why it matters
This fiscal policy reflects government efforts to mitigate the impact of global economic pressures on household purchasing power.
KUALA LUMPUR: Budget 2027's allocation of more than RM80bil for subsidies, assistance and incentives is expected to help protect Malaysians' purchasing power as they face rising living costs and potential inflationary pressures, says Dr Mohd Afzanizam Abdul Rashid.
The Bank Muamalat Malaysia Bhd chief economist said the measures were important as inflation in 2027 was projected at between 1.8% and 2.8%, while fuel prices were expected to remain high due to the ongoing war in the Middle East, which has no clear end in sight.
"The increase in allocations for the Rahmah Cash Aid (STR) and Rahmah Basic Aid (SARA) to RM16bil would provide additional financial support, particularly for middle and lower-income households," he told Bernama.
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