Budget 2027 lifts the minimum wage to RM2,000 and the personal tax relief to RM12,000
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.
DailyDrop Malaysia edition No. 8 · Morning · MON., OCT. 12, 2026