PETALING JAYA: The government will conduct a comprehensive assessment of household cost-of-living burdens covering food, housing, transport, healthcare, education and childcare to ensure aid and subsidies under Budget 2027 reach those most in need.
In a written parliamentary reply to Datuk Hajah Siti Aminah Aching (PN-Beaufort), the Finance Ministry said the assessment would form part of efforts to improve the targeting of subsidies and social assistance using comprehensive data and clear eligibility criteria, while reducing the risk of vulnerable groups being left out.
The ministry said Budget 2027 would focus on 10 key areas, with protecting Malaysians from rising living costs among its priorities.
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“Under this approach, the government will continue measures such as Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA) and BUDI MADANI to protect the purchasing power of vulnerable groups,” it said.
It will also continue efforts to stabilise the prices of essential goods through Program Jualan Rahmah MADANI, continued enforcement and strategic supply management to ensure basic necessities remain available at reasonable prices.
The government said Budget 2027 would also prioritise social justice and development for all, with efforts to narrow regional development gaps, particularly in Sabah, Sarawak, rural areas, the interior and communities lacking basic infrastructure.
“Another focus is strengthening social protection for affected families, including expanding retirement and social security coverage for groups such as self-employed workers, gig workers, informal workers, women and other vulnerable groups.
“This includes voluntary contribution facilities under the Employees Provident Fund, such as i-Saraan, i-Saraan Plus and i-Suri, while schemes under the Social Security Organisation and other relevant programmes will also be used to widen social protection coverage,” it said.
The ministry said other areas of focus would include community development, empowering micro, small and medium enterprises, cooperatives and social enterprises, as well as supporting youths, women and vulnerable communities.
“The government will also prioritise efforts to improve housing affordability and rental access, upgrade public transport, improve urban liveability and ensure development is more planned and inclusive.
“Beyond subsidies and assistance, Budget 2027 will also focus on raising household incomes and creating quality employment, including through progressive wage initiatives, high-skilled job creation and community income-generation programmes,” it said.
The ministry said the approach was aimed at reducing Malaysians’ reliance on government assistance while creating more sustainable sources of income and strengthening household resilience over the longer term.
The government said the measures were particularly important amid global uncertainty in 2026, including prolonged conflict in West Asia, which pushed global crude oil prices above US$100 a barrel and placed pressure on international supply chains.
Despite these external shocks, Malaysia’s economy remained resilient, supported by structural reforms introduced since the first MADANI Budget, including fiscal consolidation, targeted subsidies and diversification of growth sources.
Budget 2027, to be tabled on Oct 9, will be the fifth MADANI Budget and the second under the 13th Malaysia Plan, centred on the three pillars of the MADANI Economy — raising the nation’s growth ceiling, raising the floor of people’s wellbeing and driving governance reforms.
The ministry said the people would remain the priority, with policies and allocations aimed at easing living costs, raising incomes, creating quality employment and ensuring a more dignified standard of living.
