DAP National Policy Director Datuk Chan Foong Hin welcomed Budget 2027 measures to ease the financial burden on middle-income households, strengthen assistance for the B40 group and expand opportunities for young Malaysians.
He said the budget, tabled by the Prime Minister on Friday, marked an important step towards building a fairer economy in which the benefits of national development were shared more equitably.
For the M40 group, individual income tax relief will increase from RM9,000 to RM12,000, alongside lower tax rates for selected income brackets.
Expanded tax reliefs will cover postpartum care services and a wider range of expenses for caring for parents and grandparents. Sports equipment relief will include sports shoes, while education relief will extend to all fields of study and tuition fees for children.
Lifestyle relief will also cover artificial intelligence (AI) software subscriptions, pet vaccination expenses and the cost of adopting pets from registered shelters.
In a statement, Chan said the broader range of reliefs recognised the everyday expenses faced by working families and would make tax benefits more relevant to their needs.
“For too long, middle-income households have faced rising living costs while having limited access to targeted assistance. Their financial pressures must not be overlooked,” he said.
For the B40 group, allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) will increase to RM16 billion.
Funding for Jualan Rahmah Madani and Jualan Agro Madani will rise from RM630 million to RM750 million, supporting 35,000 programmes nationwide to improve access to essential goods at affordable prices.
The minimum wage will increase from RM1,700 to RM2,000 a month from June 2027, with micro, small and medium enterprises (MSMEs) earning less than RM50 million in annual revenue given time to adjust their business models.
Chan also welcomed the proposed minimum starting salary of RM2,500 a month for graduates and semi-skilled workers, describing it as a positive move towards rewarding skilled talent.
He said DAP had consistently maintained that economic growth must translate into fairer wages and better livelihoods, adding that Malaysia could not depend indefinitely on low labour costs.
However, wage increases must be accompanied by higher productivity, with continued support for MSMEs through automation, digitalisation, skills training and access to financing, he said.
For young Malaysians, nearly RM1 billion will be allocated for housing projects, including Rumah Mesra Rakyat and Program Residensi Rakyat.
Eligible first-time homebuyers will also benefit from stamp duty exemptions for their first homes priced up to RM500,000.
The budget further provides RM8 billion for technical and vocational education and training (TVET) across ministries to strengthen skills development and improve employability.
Meanwhile, the Bakat Madani initiative aims to create 30,000 new job opportunities in 2027, including through private-sector participation.
Chan said young Malaysians should have fair opportunities to secure decent jobs, own homes and fulfil their potential regardless of their family background.
He stressed that skills training and job creation must lead to meaningful employment, competitive wages and long-term career prospects.
Chan said effective implementation and transparent monitoring would be crucial to ensuring the budget allocations translated into measurable benefits for the people.
