Budget 2027 was tabled on Friday 9 October. The minimum wage rises from RM1,700 to RM2,000 a month from June 2027, and the individual tax relief rises from RM9,000 to RM12,000, the first revision since 2010. The government says the relief and lower rates in some bands could leave about five million taxpayers with up to RM1,600 more disposable income, a figure Free Malaysia Today also carried from a broking firm. CIMB Securities said the tax relief and wage rise were larger than expected, helping households but adding cost pressures for businesses (New Straits Times). Cash aid under STR and SARA is reported at RM16 billion, and HRD Corp will use RM3 billion for three million training places. The Straits Times described the Budget as courting urban voters and small businesses with tax cuts and reliefs.
A wage floor and a bigger tax relief change monthly pay and costs for millions of households at the same time, and they land before the 16th general election. How much firms pass on in prices will decide whether the gain lasts.
If you pay income tax, check how the new relief and bands change your 2027 bill. If you earn the minimum wage, the new rate applies from June 2027, not now. Small employers should check whether the reported exemption for firms with sales below RM50 million applies to them.
Supporters say the package protects living standards and rewards low and middle earners.
Critics, including analyst James Chin, call it an election budget and ask whether spending will overshoot.
The headline total is reported as RM459.8 billion by Bernama and Sinar Daily and as RM510 billion by The Star; until the Budget document settles it, DailyDrop uses neither as a comparison. Watch the opposition’s reply in the debate and any price rises after June 2027.
New Straits Times, Free Malaysia Today, The Straits Times, Bernama, Sinar Daily, The Star (9–11 Oct 2026)
Budget 2027 lifts the minimum wage to RM2,000 and the personal tax relief to RM12,000Budget 2027 lifts the minimum wage to RM2,000 and the personal tax relief to RM12,000
CIMB Securities called the tax relief and wage rise larger than expected, and warned of higher costs for business. Policy debate on the Budget begins in Parliament today.
Budget 2027, tabled on Friday 9 October, raises the national minimum wage from RM1,700 to RM2,000 a month from June 2027, and lifts the individual tax relief from RM9,000 to RM12,000, the first revision since 2010, according to reports on the Budget speech. The government says the higher relief, together with lower tax rates in some income bands, could leave about five million taxpayers with up to RM1,600 more in disposable income. Free Malaysia Today carried a broking firm’s analysis repeating that figure. More than four million workers are expected to gain from the wage rise. One report said firms with annual sales below RM50 million are exempt from the new rate; DailyDrop saw that exemption in that report only.
CIMB Securities said on Sunday that the Budget delivered larger-than-expected tax relief and a higher minimum wage, which supports household spending but raises cost pressures for businesses, the New Straits Times reported. Cash aid under the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes rises to RM16 billion, reports said. HRD Corp will use RM3 billion of its levy funds to support three million training places. Political analyst James Chin called the Budget a bid to win votes before GE16, while ministers welcomed the focus on living costs. The total is reported two ways: Bernama and Sinar Daily cite RM459.8 billion for the federal budget, up 3.6%, while The Star’s Saturday front page called it a record RM510 billion. DailyDrop has not reconciled the two, and did not find an opposition statement.