.png)
Malaysians are set to benefit from a range of financial assistance, higher wages, tax relief and cost-of-living measures under Budget 2027, aimed at easing household expenses and improving living standards. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the initiatives while tabling the fifth Madani Budget in the Dewan Rakyat, outlining measures covering education, housing, transportation, taxation and social welfare.
Here are 15 key benefits Malaysians can look forward to under Budget 2027, according to the announcements.
1. STR and SARA assistance of up to RM1,800 a year
The government will increase the allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion, up from RM15 billion previously. Eligible STR recipients can receive SARA assistance of up to RM150 a month, equivalent to RM1,800 annually, benefiting approximately nine million recipients.
2. RM200 in SARA aid for Malaysians aged 18 and above
Malaysians aged 18 and above who do not receive STR will receive RM100 in SARA assistance on two occasions. The payments are scheduled ahead of Hari Raya Aidilfitri and before Malaysia's 70th National Day celebrations, extending assistance to middle-income households, including the M40 group.
3. Minimum wage increased to RM2,000
The minimum wage will rise from RM1,700 to RM2,000 a month, effective June 2027. However, micro, small and medium enterprises (MSMEs) with annual sales below RM50 million will be exempted from implementing the new rate.
4. Individual tax relief increased to RM12,000
The individual income tax relief limit will increase from RM9,000 to RM12,000. Tax rates will also be reduced to 18% for chargeable income between RM70,000 and RM100,000, and 24% for income between RM100,000 and RM150,000. These measures are intended to ease the tax burden on eligible individual taxpayers.
5. Tax relief expanded to cover postnatal care
Individual income tax relief for medical expenses will be expanded to include postnatal care services. The scope of relief for caring for parents and grandparents will also be broadened beyond healthcare-related expenses.
6. Female civil servants to receive up to 490 days of maternity leave
The cumulative maternity leave entitlement for female civil servants throughout their service will increase from 360 to 490 days. The maximum leave allowed for each birth will remain capped at 98 days.
7. Schooling assistance increased to RM200 per student
Bantuan Awal Persekolahan (BAP) will increase from RM150 to RM200 per student for the 2027 school session. The additional assistance is intended to help parents cover expenses such as school uniforms, stationery and other back-to-school essentials.
8. PTPTN repayment relief for lower-income borrowers
National Higher Education Fund Corporation (PTPTN) borrowers earning up to RM2,500 a month will be eligible for a repayment deferment. Borrowers earning above RM2,500 and up to RM3,000 a month will only need to make minimum monthly repayments of RM50. A 10% discount will also be offered to borrowers who have no arrears and make their repayments regularly.
9. FLYSiswa flight assistance increased to RM500
Eligible students at public higher education institutions will receive RM500 in flight ticket assistance under the FLYSiswa initiative, up from RM400 previously. The measure is expected to benefit more than 60,000 students by helping reduce the cost of air travel.
10. Stamp duty exemption for first-home buyers
The government has proposed a full stamp duty exemption for first-home purchases priced at up to RM500,000. For homes priced up to RM750,000, buyers will receive a full exemption on the first RM500,000 and a 50% exemption on the remaining amount. The initiative will apply to sale and purchase agreements signed from Jan 1, 2027, to Dec 31, 2030.
11. Minimum pension increased to RM1,350
The minimum monthly pension will rise from RM1,000 to RM1,350. The increase is expected to benefit nearly 59,000 pensioners, Malaysian Armed Forces veterans and recipients of derivative pensions.
12. Monthly assistance for bedridden persons with disabilities increased to RM600
Monthly assistance for bedridden persons with disabilities (OKU) and patients with chronic illnesses will increase to RM600. The allowance for students with special educational needs will also rise to RM200 a month. Meanwhile, the income threshold for eligibility for the OKU Workers' Allowance will increase to RM2,000 a month.
13. Disaster-related home repair assistance doubled to RM10,000
Financial assistance for repairing homes damaged by disasters will double from RM5,000 to RM10,000. The increase is intended to help affected households restore damaged homes and recover from disasters.
14. RM1,000 one-off aid for taxi and school bus drivers
Approximately 38,000 taxi and rental-car drivers, along with 15,000 school bus drivers, will receive a one-off financial assistance payment of RM1,000. According to the announcement, the payments will be distributed in the week following the tabling of Budget 2027.
15. New MYKOMUTER50 pass introduced
The government will introduce the MYKOMUTER50 pass to help KTM Komuter passengers reduce their daily commuting expenses. The existing My50 public transport travel pass will also continue, providing ongoing support for eligible public transport users.
Budget 2027: What Malaysians should know
Budget 2027 introduces measures aimed at supporting households across different income groups, from students and first-time homebuyers to pensioners, persons with disabilities and transport workers. Key initiatives include increased cash assistance, a higher minimum wage, expanded tax relief, education support and more affordable commuting options.
However, the actual benefits each individual receives will depend on the eligibility requirements and implementation details of the respective programmes. Malaysians should check the relevant government agencies for official guidelines, application procedures and payment schedules as further details become available.
Have a take on #Budget2027? Turn your perspective into content, join the conversation, and stand a chance to win exciting cash prizes! Find out how to join here. T&Cs apply.
Badrulamin Luthfi (mobamil96@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.
