Malaysia to raise minimum wages, expand tax relief in spending boost for 2027 budget
Malaysia's Prime Minister Anwar Ibrahim has unveiled a 2027 budget of RM459.8 billion, focusing on raising minimum wages and expanding tax relief. The government aims to stimulate household income and support small businesses amidst rising global oil prices.
Why it matters
This expansionary fiscal policy reflects the government's attempt to balance economic growth with the rising cost of living ahead of potential elections.
Malaysia Prime Minister Anwar Ibrahim on Friday (Oct 9) pledged to implement reforms that he said would allow the country's strong economic growth to trickle-down to ordinary Malaysians.
Malaysia Prime Minister Anwar Ibrahim, who is also the Minister of Finance, showing the Budget 2027 booklet at the Ministry of Finance in Putrajaya on Oct 9, 2026. (Photo: CNA/Fadza Ishak)
KUALA LUMPUR: Malaysia unveiled a host of tax relief measures on Friday (Oct 9) and said it would raise minimum wages next year, as the government looked to boost household incomes and support small businesses ahead of a possible election despite growing fiscal pressure from a jump in global oil prices.
Speaking in parliament, Prime Minister Anwar Ibrahim proposed an expansionary budget of RM459.8 billion (US$112.5 billion) for 2027 and pledged to implement reforms that he said would allow the country's strong economic growth to trickle-down to ordinary Malaysians.
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