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BUDGET 2027 brings various benefits to the people through financial aid, income enhancements, tax relief, and initiatives to alleviate the burden of the cost of living.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, announced various measures covering the education, housing, transportation, and welfare sectors while tabling the fifth Madani Budget in the Dewan Rakyat today.
The following are several key benefits announced by the government for the people:
STR and SARA assistance of up to RM1,800 annually
The allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) has been increased to RM16 billion from the previous RM15 billion.
STR recipients are eligible to receive SARA payments of up to RM150 per month - or RM1,800 annually, benefiting approximately nine million recipients.
Two SARA payments of RM100
Malaysians aged 18 and above who are not STR recipients will receive two SARA payments of RM100 each - one before Hari Raya Aidilfitri and another leading up to the nation's 70th independence anniversary - including those in the middle-income (M40) group.
Minimum wage raised to RM2,000
The minimum wage rate will increase from RM1,700 to RM2,000 per month starting June 2027.
However, micro, small, and medium enterprises (MSMEs) recording sales revenue below RM50 million are exempted from implementing the new rate.
Individual tax relief increased to RM12,000
The individual tax relief limit has been raised from RM9,000 to RM12,000, while tax rates for chargeable income between RM70,000 and RM100,000 have been reduced to 18 per cent, and for income between RM100,000 and RM150,000, to 24 per cent.
Tax relief for post-natal care
The scope of individual income tax relief for medical expenses has been expanded to include post-natal care services, in addition to care expenses for parents and grandparents, which are no longer limited solely to health-related aspects.
Civil servant maternity leave extended to 490 days
The total maternity leave entitlement for female civil servants over their service period has been increased from 360 to 490 days, with a maximum of 98 days allowed per birth.
Early Schooling Aid increased to RM200
The Early Schooling Aid (BAP) has been raised from RM150 to RM200 per student for the 2027 school session to assist parents in covering the costs of preparing their children for school.
PTPTN repayment deferment for low-income borrowers
Borrowers from the National Higher Education Fund Corporation (PTPTN) earning up to RM2,500 per month are granted a repayment deferment, while those earning between RM2,500 and RM3,000 are required to make a minimum monthly payment of RM50.
A 10 per cent discount is also offered to borrowers with no outstanding arrears who make regular payments.
FLYSiswa flight ticket aid increased to RM500
Flight ticket assistance under the FLYSiswa initiative has been raised from RM400 to RM500 to help reduce travel costs for over 60,000 eligible students at public higher education institutions (IPTA).
Stamp duty exemption for first-time home purchases
The government proposes a full stamp duty exemption for the purchase of a first home priced up to RM500,000; for homes priced up to RM750,000, a full exemption applies to the first RM500,000, with a 50 per cent exemption on the remaining balance. The initiative involves a sale and purchase agreement effective from 1 January 2027 to 31 December 2030.
Minimum pension rate raised to RM1,350
The minimum pension rate has been increased from RM1,000 to RM1,350 per month, benefiting nearly 59,000 retirees, Malaysian Armed Forces (MAF) veterans, and recipients of derivative pensions.
Care assistance for bedridden persons with disabilities (OKU) increased to RM600
Care assistance for bedridden persons with disabilities (OKU) and chronically ill patients has been raised to RM600 per month, while the Special Education Needs Student Allowance has also been increased to RM200 per month.
The income threshold for eligibility for the OKU Worker Allowance has also been raised to RM2,000 per month.
Home repair assistance for disaster victims increased to RM10,000
The rate of home repair assistance for disaster victims has been doubled from RM5,000 to RM10,000 to help them repair homes damaged by disasters.
RM1,000 assistance for taxi and school bus drivers
A total of 38,000 taxi drivers (including rental car drivers) and 15,000 school bus drivers will receive a special one-off financial aid of RM1,000, to be disbursed in the week following the tabling of the 2027 Budget.
MYKOMUTER50 pass introduced
The government is introducing the MYKOMUTER50 pass facility to help KTM Komuter users reduce daily transportation expenses, in addition to continuing the My50 travel pass facility for public transport users. – October 9, 2026
