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SHAH ALAM - Budget 2027 must focus on improving the people's financial well-being by ensuring income gains are not eroded by rising prices, while creating more opportunities for quality employment.
Universiti Sains Islam Malaysia Faculty of Economics and Muamalat senior lecturer in Economics and Banking Dr Mohd Faisol Ibrahim said increasing incomes should be among the government's priorities to ensure that salary and wage increases genuinely improve people's ability to meet their daily needs.
He said these efforts must go hand in hand with controlling the prices of essential goods to ensure that income gains are not eroded by rising living costs.
"The government needs to increase people's incomes so that salary and wage increases genuinely benefit them.
"At the same time, controls on the prices of essential goods must be strengthened to ensure wage increases are not eroded by price manipulation by producers or third parties seeking to maximise profits," he said.
He said the government could also consider income tax relief covering education and healthcare expenses to give the people more room to increase their disposable income.
"Income tax relief covering education and healthcare should be considered so that people have more disposable income," he said.
Meanwhile, Faisol said higher incomes must be supported by the creation of more job opportunities that match university graduates' qualifications.
He said this was important to reduce unemployment, increase quality employment and reduce dependence on foreign workers.
In Budget 2027, an appropriate increase in the minimum wage could be considered as one of the measures to benefit the people without placing significant pressure on the government's fiscal position.
"This would not only help improve spending power but could also strengthen the economic cycle, as an increase in the minimum wage would boost contributions to the Employees Provident Fund (EPF), benefiting both workers and the EPF in the short and long term," he said.
At the same time, targeted subsidies should be strengthened so that the savings generated by the government can be channelled back to the people on a larger scale.
"Targeted subsidies should also be strengthened so that the savings generated by the government can be channelled back to the people on a larger scale, thereby increasing their disposable income," he said.
Faisol also said protection for workers exposed to accident risks, particularly gig workers and those employed by micro, small and medium enterprises (MSMEs), should be enhanced to support economic stability.
In addition, efforts to increase Bumiputera ownership and participation in high-tech industries should be given attention through financing and education support.
To reduce daily expenses, Mohd Faisol proposed expanding childcare facilities at workplaces to the private sector, with fees set at appropriate levels according to workers' income.
"This would not only reduce the costs and time borne by workers but could also improve their productivity," he said.
He also proposed extending flexible working arrangements beyond specific days to help workers reduce transportation costs and other work-related expenses.
The government could also expand the range of goods eligible for purchase under Sumbangan Tunai Rahmah (STR) to ensure the assistance provided is better targeted and benefits recipients.
To ensure every allocation delivers a clearer impact, Faisol said the government should place greater emphasis on targeted interventions in Budget 2027.
"This approach would allow the impact and effectiveness of allocations to be assessed more accurately, while helping to prevent wastage and minimise leakages," he said.
He said this approach was important to ensure that Budget 2027 provided more than short-term relief, but also helped strengthen the people's financial well-being over the longer term.
