Kuala Lumpur: Budget 2027 focuses on inclusive growth through targeted support for households, businesses and investment, while maintaining fiscal discipline, according to KPMG in Malaysia.
KPMG in Malaysia Head of Tax Soh Lian Seng (pic) said the Budget aimed to translate reforms into tangible benefits, with the fiscal deficit projected to narrow from 3.6 per cent of gross domestic product in 2026 to 3.3 per cent in 2027.
He said measures for middle-income households included increasing individual tax relief from RM9,000 to RM12,000, alongside expanded reliefs for medical treatment, caregiving, education, skills development and lifestyle expenses.
Soh said support for small and medium enterprises included tax reductions for eligible businesses, extended capital allowances and stamp duty concessions for certain financing arrangements, while higher minimum wages and enhanced support for gig workers could strengthen household purchasing power.
He added that enhanced incentives for Global Services Hub companies, including a preferential five per cent tax rate for qualifying incremental income and additional exemptions for eligible activities, could attract higher-value business functions, while the Budget’s overall success would depend on raising productivity, improving incomes and delivering sustainable economic growth.
