Budget 2027: 6 Things M’sians Need to Know, From Cash Aid to Higher Wages

Prime Minister Datuk Seri Anwar Ibrahim tabled Budget 2027 in Parliament on Friday (9 October 2026), announcing several measures aimed at easing the cost of living and putting more money into Malaysians’ pockets.

From cash assistance and tax relief to higher minimum wages, housing incentives, and maternity support, here are six key announcements that could affect your finances in 2027.

1. STR recipients to get up to RM150 monthly, others to receive RM100 twice

• The government has increased the combined allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) from RM15 billion to RM16 billion in 2027.

• All STR recipients will receive SARA assistance of up to RM150 monthly, or up to RM1,800 annually, depending on eligibility.

• Meanwhile, Malaysians aged 18 and above who are not STR recipients will receive RM100 in SARA MADANI twice, once before Hari Raya Aidilfitri and another ahead of Malaysia’s 70th Merdeka celebrations.

• SARA can also be used to purchase fresh produce at 216 FAMA farmers’ markets and tamu nationwide.

2. Personal tax relief increased to RM12,000

• Here’s some welcome news for taxpayers.

• The government announced that the individual tax relief amount will increase from RM9,000 to RM12,000.

• Resident individual income tax rates will also be reduced by one percentage point for two chargeable income brackets:

  • RM70,000 to RM100,000: reduced to 18%.

  • RM100,000 to RM150,000: reduced to 24%.

• Tax reliefs will also be expanded to cover expenses such as postnatal care, care for parents and grandparents (expanded to all care expenses, not just health), sports shoes (including purchase of sports equipment), children’s tuition and all study fields, AI subscriptions, and certain pet-related expenses (adoption of pets from registered centers, vaccinations, and pet food).

• The government estimates that these changes could provide up to RM1,600 in additional disposable income for approximately five million taxpayers.

3. Minimum wage to increase to RM2,000 from June 2027

• Malaysians earning minimum wage can expect a pay increase next year.

• The government announced that the monthly minimum wage will rise from RM1,700 to RM2,000, effective June 2027.

• More than four million workers are expected to benefit, although MSMEs with annual sales below RM50 million will be exempted from the new rate.

• The government also plans to introduce a starting minimum salary of RM2,500 for semi-skilled workers and graduates.

4. Better income and protection for gig workers

• E-hailing drivers and delivery riders are also getting additional support.

• The government and Grab have agreed to jointly finance a RM160 million package beginning in 2027, covering improvements to earnings (minimum income rates), vehicle maintenance assistance, insurance, and PERKESO contributions.

• The initiative could increase monthly net earnings by up to RM227 for median-level e-hailing drivers and RM100 for p-hailing riders.

• Eligible gig workers will also receive matching contribution incentives, including EPF contributions of up to RM600 annually or RM6,000 over a lifetime.

5. Stamp duty exemptions for first-time homebuyers

• Planning to buy your first home? Budget 2027 includes proposed measures to reduce upfront costs.

• The government has proposed full stamp duty exemptions on loan agreements and instruments of transfer for first homes priced up to RM500,000.

• For homes priced up to RM750,000, the proposal provides a full exemption on the first RM500,000 and a 50% exemption on the remaining amount.

• The proposed exemptions apply to sale and purchase agreements completed between 1 January 2027 and 31 December 2030.

• Meanwhile, up to RM20 billion in housing financing guarantees will be provided through Syarikat Jaminan Kredit Perumahan (SJKP) to help 80,000 first-time buyers, especially self-employed individuals without a fixed income.

6. Civil servants to get up to 490 days of maternity leave

• Civil servants will benefit from an increase in their total maternity leave entitlement from 360 to 490 days throughout their careers, allowing them to take up to 98 days of leave per birth.
• The government has also allocated RM20 million to upgrade existing childcare centres and build new nurseries at government facilities.
• In addition, tax relief will be expanded to cover postnatal care medical expenses.

What does this mean for Malaysians?

Budget 2027 brings several measures aimed at helping Malaysians manage everyday expenses, increase their income, and reduce certain financial burdens. However, eligibility requirements and implementation dates vary between initiatives, so Malaysians should check the relevant government agencies for the latest details.

Which Budget 2027 announcement matters most to you? Let us know in the comments!

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