Development must go beyond economic figures, technological advancement and towering landmarks as progress would mean little if country loses sight of values, long-term aspirations: PM
PETALING JAYA: Malaysia’s future must be measured not merely by government spending or built infrastructure but also by the nation it leaves for future generations, Prime Minister Datuk Seri Anwar Ibrahim said as he unveiled Budget 2027 yesterday.
Emphasising that development must go beyond economic figures, technological advancement and towering landmarks, he said progress would mean little if the country loses sight of its values and long-term aspirations.
“We are not building a nation for one fiscal year. We are building a nation for a generation.
“And the duty of a generation is not merely to enjoy what it has inherited but to expand what can be passed on,” he said in his closing address in the Dewan Rakyat.
With election talk gathering pace, Budget 2027 also gives Anwar an opportunity to demonstrate that four years of Madani reforms are translating into tangible benefits for Malaysians, from financial assistance and affordable housing to jobs, skills training and better public services.
The Budget is projected to mobilise RM510 billion in spending and investments.
It involves RM459.84 billion in federal government expenditure and contributions from GLICs, the private sector and statutory bodies.
GLICs will channel RM25 billion into investments, with the government aiming to translate economic growth into higher wages, stronger household savings and more business opportunities.
The Education Ministry received the largest allocation of RM69 billion, followed by the Health Ministry at RM47.7 billion, Home and Defence ministries at RM22 billion each and Higher Education Ministry at RM19.1 billion. Federal allocations for Sabah and Sarawak will rise to RM18.7 billion and RM16.2 billion respectively.
Themed “Reaching for the Sky, Rooted in the Earth”, the Budget builds on reforms under the New Industrial Master Plan, National Energy Transition Roadmap and Bumiputera Economic Transformation Plan while outlining measures to improve livelihoods and support vulnerable groups.
More support for ageing Malaysians
From Jan 1, 2027, service tax on elderly care services will be reduced from 8% to 6%, with care fees of up to RM96,000 annually fully exempted.
More than RM40 million will be channelled through HRD Corp to train 8,000 elderly care workers while National Integrated Care Excellence centres will be developed in Penang and Sarawak for care, training and research.
Elderly assistance will rise to RM1.3 billion, benefitting nearly 200,000 recipients. EPF members aged 55 and 60 may opt for the i-Emas scheme which provides monthly withdrawals while the remaining savings continue earning dividends.
Higher assistance for persons with disabilities
Assistance for persons with disabilities (OKU) will rise to RM1.5 billion, benefiting more than 300,000 recipients.
Monthly aid for bedridden OKU and chronically ill patients will increase from RM500 to RM600 while the income threshold for the Disabled Workers Allowance will rise from RM1,700 to RM2,000.
The special education allowance will increase from RM150 to RM200 monthly for 150,000 pupils, including autistic children.
Monthly incentives for 20,000 special education teachers will rise from RM250 to RM300.
Two Permata Kurnia centres will be built in Malacca and Pahang to support autistic children while more than 130 Tabika Tunas Istimewa classes will open in rural areas to provide early intervention for autistic children from low-income families.
Fifteen Community-Based Rehabilitation premises will be upgraded into specialised therapy centres to serve 20,000 registered persons with Down syndrome.
Another 3,000 caregivers will receive specialised training.
Orang Asli development
The Orang Asli Development Department will receive RM445 million for initiatives including replanting at Pos Poi in Sungai Siput, Perak and kindergartens at Kampung Angkek and Pos Belatim in Gua Musang, Kelantan.
A 100-place hostel will also be built in Kinta, Perak, for Orang Asli children living far from school.
0 A second chance
From 2027, the bankruptcy threshold will rise from RM100,000 to RM150,000.
The Second Chance policy will cover primary caregivers of OKU, chronically ill patients and senior citizens as well as gig workers and people with irregular incomes.
Automatic discharge under Section 33C of the Insolvency Act will be strengthened, allowing eligible individuals to be discharged in as little as three years.
Cheaper public transport
The My50 pass will continue, benefiting 300,000 Prasarana bus and rail users in the Klang Valley.
A new MyKomuter50 pass will benefit 40,000 KTM Komuter users, with estimated monthly savings of up to RM160.
Free passes will be provided to 360,000 school pupils, OKU and children below six.
Prasarana and Keretapi Tanah Melayu Bhd (KTMB) have been directed to improve train reliability and prevent service disruptions.
RM8 billion for TVET and jobs
The government aims to create 30,000 jobs under Bakat Madani in 2027 with private-sector participation.
Companies running its talent training programmes will qualify for tax deductions for programmes conducted from June 29, 2026 to Dec 31, 2030.
Technical and vocational education and training (TVET) will receive RM8 billion across ministries.
HRD Corp will receive RM3 billion to provide three million training opportunities, while the Skills Development Fund Corporation will allocate RM500 million to finance trainees at registered public and private skills institutes.
Mara will train and place 1,000 Bumiputera youths in high-growth sectors while GiatMara electrical wiring trainees will help repair wiring in 20,000 homes belonging to poor families.
Indian youth and talent development
The Malaysian Indian Transformation Unit (Mitra) allocation will rise to RM150 million, prioritising training and employment in industrial automation, technology and aircraft maintenance to prepare Indian youths for higher-value industries.
AI and digital technology
A sovereign AI cloud is planned to keep citizens’ data and strategic national information under Malaysian control.
Another 100,000 free AI subscriptions will be provided to young people, including access to applications such as ChatGPT.
Rakyat Digital, in collaboration with Coursera, will offer free access to more than 16,000 digital courses and professional certificate programmes.
The Malaysian Digital Economy Corporation will allocate RM30 million to help 4,000 MSMEs adopt AI and automate operations while training and certifying 5,000 AI professionals.
Environment and wildlife conservation
Malaysia has retained nearly 18 million hectares of forest, covering 54.4% of its land area.
By 2025, nearly 4,000ha of mangrove and coastal forests had been restored through the planting of more than 9.3 million mangrove and other suitable species.
The Ecological Fiscal Transfer allocation will rise to RM270 million to support state conservation efforts and community-based ecotourism.
RM65 million will support about 2,500 community rangers, including Orang Asli, military veterans and retired police officers, through ranger posts and patrols.
Following the return of leatherback turtles to Terengganu’s coastline to lay eggs for the first time since 2017, a scheme will be introduced to enable the buying of old fishing nets to protect marine life.
A further RM15 million from palm oil industry levies will fund conservation efforts for threatened wildlife, including Malayan tigers, Bornean elephants and orangutans.
Tax relief to boost local films and theatre
More than RM130 million will support local film, music and creative content, with incentives for Malaysian and international film and animation productions shot locally.
Additional incentives will reward productions showcasing Malaysian culture and national identity.
From 2027, entertainment duty on tickets for local films and theatre performances in the Federal Territories will be fully exempted.
The government aims to develop 20 new intellectual properties in local animation and commercialise Malaysian characters globally.
To support locally developed AI technologies, ministries, agencies and educational institutions will contribute verified and annotated digital Malay-language data to Dewan Bahasa dan Pustaka.
0 Housing and Bumiputera business opportunities
Nearly 11 acres of government land in Belfield, Kuala Lumpur will be developed to provide at least 2,500 Rumah Madani units, with 70% reserved for Bumiputera.
The allocation for Bumiputera G1-G4 contractors will rise to RM7.5 billion from RM4 billion this year.
Direct appointments will be allowed for government maintenance contracts worth up to RM200,000 while quotations will be permitted for contracts of up to RM3 million.
Teraju will receive up to RM1 billion to support Bumiputera projects and strengthen monitoring across government departments, agencies and companies.
Perbadanan Usahawan Nasional Bhd’s financing will rise to RM500 million from RM350 million.
Sabah and Sarawak
The interim Special Grant for Sabah and Sarawak has been tripled to RM1.5 billion, payable before year-end as discussions continue on a fair annual funding formula.
Twelve Malaysia Agreement 1963 matters have been resolved, including state representation on the Inland Revenue Board, the transfer of Bintulu Port to Sarawak and the transformation of MASwings into AirBorneo, backed by RM209 million in rural air service subsidies.
Sabah will receive RM600 million to support its takeover of electricity regulation, with another RM204 million for Statcom systems at Dam Road and Segaliud. Work on the Southern Link transmission line is ongoing.
Federal allocations will rise to RM18.7 billion for Sabah from RM17.6 billion, and RM16.2 billion for Sarawak from RM15.1 billion.
JPA scholarships for students from both states have doubled, benefiting 4,200 students annually.
Discussions are underway to establish the Sibu Special Economic Zone.
Another RM3.3 billion has been allocated for road projects, with RM350 million set aside for federal road maintenance contracts reserved for G1-G4 contractors in both states.
Sports and national unity
The government has allocated RM240 million for preparations and hosting the 2027 SEA Games and Asean Para Games, alongside RM460 million for national sports development, including high-performance sports, the Road to Gold programme, para-athletes, deaf sports and facility maintenance.
Matching grants of RM30 million will support high-performance sporting events organised by sports bodies, clubs and NGOs.
School sports funding will rise 50% to RM27 million, benefiting more than 4.6 million pupils in 10,000 schools.
Under Budi Belia, youths completing the required volunteer hours with selected NGOs will receive RM100 in e-wallet incentives.
Annual grants for active registered Rukun Tetangga committees will increase from RM6,000 to RM10,000.
Visit Malaysia 2027
The Visit Malaysia campaign will continue into 2027, backed by RM935 million for tourism and culture.
The allocation includes incentive grants for industry players to promote and organise tourism events, with the aim of attracting more visitors and strengthening the sector.
Ultimately, Budget 2027 is Anwar’s bid to turn economic reforms into lasting gains for Malaysians, balancing growth and investment with social protection and opportunities for future generations.
