Budget 2027 · announced 9 October 2026

What changes for your money?

A practical guide to Malaysia’s Budget 2027: household aid, tax, pay and the next steps worth taking.

Sources checked: 10 October 2026 · Malaysia time

Open the action checklist →Read the official documents

Announced measures

The complete MOF documents are published. Announcements are not proof that every measure is approved or already effective. Dates and conditions below follow the published documents; agency rules may add detail.

The budget at a glance

Federal expenditure and the wider investment envelope are different totals.

Federal expenditure

RM459.8b

Operating

RM376.8b

Development

RM83b

Deficit target

3.3%

of GDP

RM510b wider envelope

RM459.8b federal expenditure + RM25b GLIC investment + RM11b public–private investment + RM14.2b statutory-body and MKD-company investment. These investments are not extra household cash aid.

Sources: MOF speech, pp. 84–85; federal total = operating + development

What it means for you

Start with the topic that affects your household. Each action below is bajet.com’s recommendation.

01 / 06

Check your household aid

Who it affects: Households, singles and seniors

STR and SARA receive RM16 billion. SARA varies by recipient category, with a base amount of up to RM150 a month; additional support for poor and hardcore-poor recipients is listed separately. Non-STR Malaysians aged 18+ are announced to receive RM100 twice.

When
2027 aid. SARA MADANI payments are estimated for February and August 2027, not confirmed payment days.
Important conditions
RM150 is not a universal monthly entitlement. Confirm your category and approval; the SARA service page currently describes 2026 rules.

Your next step

Prepare identity, household, income and bank records. HASiL lists manual STR 2027 applications at its offices from 1 October 2026 and online applications from 15 October 2026.

Official information: MySTR / HASiL ↗ · SARA ↗

Sources: MOF summary, p. 2 (category table), HASiL application notice

02 / 06

Prepare for the tax changes

Who it affects: Resident individual taxpayers

Personal relief is proposed to rise from RM9,000 to RM12,000. Marginal rates become 18% for chargeable income RM70,001–RM100,000 and 24% for RM100,001–RM150,000. Above RM1 million, the proposed marginal rate is 30%.

When
Proposed from assessment year 2027; do not apply these figures to your 2026 return.
Important conditions
Chargeable income is after allowable deductions and reliefs. Each marginal rate applies to its band, not your whole salary. Relief reduces taxable income; it is not a cash payment.

Your next step

Keep receipts in separate year-and-category folders. Check HASiL guidance before claiming new categories. Current bajet.com calculators do not incorporate these proposed 2027 changes.

Official information: HASiL ↗

Sources: Tax measures, appendices 1–2, pp. 4–6

Family tax reliefs: caps and conditions

Proposed for assessment year 2027. Sublimits sit inside the overall caps; do not add them as separate extra reliefs or claim the same expense twice.

Parents and grandparents

Broader care expenses within the existing RM8,000 cap. Keep receipts and the required carer declaration or work permit.

Appendix 3, p. 7 ↗

Postnatal care and breastfeeding

Within the RM10,000 health-wellbeing cap: up to RM3,000 for qualifying postnatal care and RM1,000 for breastfeeding equipment for children aged two and below.

Appendix 4, pp. 8–9 ↗

Education and skills

The combined cap remains RM7,000. Sublimits include RM3,000 for qualifying TVET for self or spouse and RM2,000 for specified personal-development courses or children’s classes and tuition.

Appendix 5, pp. 10–11 ↗

Lifestyle and sport

AI subscriptions and qualifying pet adoption, vaccination and neutering costs join the RM2,500 lifestyle cap. Sports shoes up to RM300 sit within the separate RM1,000 sports cap.

Appendices 6–7, pp. 12–13 ↗
03 / 06

Check when your pay changes

Who it affects: Employees and job seekers

A RM2,000 minimum wage is announced for June 2027. MSMEs with sales below RM50 million are exempted. A separate RM2,500 starting minimum for semi-skilled and graduate jobs is also announced.

When
June 2027 for the RM2,000 measure. Implementation details for the separate RM2,500 framework are pending.
Important conditions
Coverage depends on your employer and the implementing rules. The RM3,400 living-wage benchmark for GLICs/GLCs is a separate measure, not a universal minimum.

Your next step

Ask HR whether your employer is covered and request the applicable start date. Use your actual payslip when planning expenses until the increase takes effect.

Official information: JTKSM ↗

Sources: MOF summary, p. 4

04 / 06

Review your PTPTN repayments

Who it affects: Students and PTPTN borrowers

The 2027 package announces deferment for gross monthly income up to RM2,500, a RM50 monthly minimum for RM2,501–RM3,000, and a 10% repayment discount for borrowers who pay regularly without arrears.

When
Announced for 2027; the application process and precise start date require PTPTN confirmation.
Important conditions
Income-based arrangements are subject to cross-checks with HASiL. Deferment is not loan cancellation; the discount is conditional.

Your next step

Download your repayment statement and prepare proof of gross income. Keep to your current repayment arrangement until PTPTN approves a change.

Official information: PTPTN ↗

Sources: MOF summary, pp. 24–25

05 / 06

Review your gig-worker protection

Who it affects: Gig workers, self-employed people and homemakers

KWSP matching incentives and PERKESO contribution support are announced, alongside a government–Grab support package for e-hailing and p-hailing workers.

When
2027 announcements; scheme-specific contribution rules and access details need agency confirmation.
Important conditions
Support varies by scheme, occupation and platform. Announced estimates of higher net income are not guaranteed payments to every worker.

Your next step

Check your KWSP and PERKESO registration and contribution history. Ask which scheme covers your work and what contribution is required before counting on a matching incentive.

Official information: KWSP ↗ · PERKESO ↗

Sources: MOF summary, p. 5

06 / 06

Check first-home stamp duty

Who it affects: Malaysian citizens buying their first home

Proposed relief covers loan agreements and transfers: 100% exemption for homes up to RM500,000. For homes above RM500,000 up to RM750,000, the first RM500,000 receives full exemption and the remaining portion receives 50% exemption.

When
Proposed for qualifying sale-and-purchase agreements completed from 1 January 2027 to 31 December 2030.
Important conditions
First-home and citizenship conditions apply. A RM750,000 home does not receive full exemption on its entire price.

Your next step

Ask your lawyer and bank for a written duty and fee breakdown using the property price, buyer profile and agreement date. Confirm the applicable exemption before signing.

Official information: HASiL ↗

Sources: Tax measures, appendix 16, p. 22

The main announcements, simply explained

Who it affects: Taxpayers supporting children, parents or grandparents

Keep family and care receipts

What changed: Proposed family reliefs cover more care, postnatal and learning expenses within shared limits.

What you can do now

Keep dated receipts in separate 2026 and 2027 folders. Record who the care or course was for, then check HASiL’s final requirements before claiming.

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Timing, conditions & sources

Broader care expenses sit within the RM8,000 parent/grandparent cap. Qualifying postnatal care and breastfeeding equipment sit within the RM10,000 health cap. Education sublimits sit within the RM7,000 education cap.

When
Proposed for assessment year 2027; final HASiL claim guidance is needed.
Before relying on this benefit
Tax relief lowers income used to calculate tax; it is not cash aid. Sublimits are part of the overall caps, not extra amounts. Never claim the same expense twice.

Official information: HASiL ↗

Sources: Tax measures, appendices 3–5, pp. 7–11

Who it affects: Parents, caregivers and school pupils

Check your child’s school aid

What changed: Back-to-school aid is announced to rise from RM150 to RM200 per pupil.

What you can do now

Check that your child’s school records are current. Ask the school how the 2027 aid will be distributed and what documents it needs.

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Timing, conditions & sources

The education ministry receives RM69 billion. Back-to-school aid rises to RM200 per pupil and school repair and maintenance funding rises to RM2 billion.

When
Budget 2027 announcement. Schools and KPM must confirm distribution dates and procedures.
Before relying on this benefit
The announcement does not confirm a payment date or your child’s eligibility. Ministry allocations are public-service funding, not cash for every family.

Official information: KPM ↗

Sources: MOF summary, p. 24

Who it affects: Patients, families and eligible STR recipients

Review your healthcare options

What changed: RM47.7 billion goes to health services. MySalam and PeKa B40 continue; MediAsas is announced for January 2027.

What you can do now

Ask your clinic which screening or support scheme applies to you. Review existing medical cover before considering a new plan.

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Timing, conditions & sources

Budget 2027 continues MySalam and PeKa B40. The summary describes PeKa B40 screening and treatment support for STR recipients and spouses aged 40+. MediAsas is an affordable basic medical insurance/takaful plan announced for nationwide launch.

When
2027 announcements; MediAsas launch is announced for January 2027. Check each scheme’s current access rules.
Before relying on this benefit
Coverage depends on the scheme and eligibility checks. A lower-cost insurance plan does not mean all treatment is free; confirm premiums, exclusions and benefits.

Official information: KKM ↗

Sources: MOF summary, pp. 22–23

Who it affects: Commuters, students and eligible rail passengers

Compare your travel-pass costs

What changed: My50 continues at RM50 a month. A separate MyKomuter50 monthly pass is announced for eligible Malaysians.

What you can do now

Add up your normal monthly fares and compare with the relevant pass. Ask the operator whether your route and passenger category are covered.

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Timing, conditions & sources

My50 covers 30 days of unlimited travel on the Rapid KL rail and bus network. MyKomuter50 is announced for KTM Komuter. MyRailLife continues for specified children, school pupils and persons with disabilities on covered KTM services.

When
Continuation and new-pass announcements for 2027. Confirm new-pass availability with the operator.
Before relying on this benefit
Rapid KL and KTM are different networks. Check covered routes, citizenship or age conditions, registration and activation dates before buying.

Official information: MOF transport announcements ↗

Sources: MOF summary, p. 27

For business owners

Four checks for your business. Loans, guarantees, grants and tax allowances work differently.

See my tips & actions →

Who it affects: Micro, small and medium business owners

Compare financing and guarantees

What changed: RM32 billion in business financing guarantees is announced through SJPP and CGC.

What you can do now

Prepare registration, accounts, bank statements and a cash-flow forecast. Ask your lender which guarantee or agency facility fits your business, and compare the total repayment cost.

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Timing, conditions & sources

Guarantees help businesses access bank financing. The summary also lists agency financing programmes, including TEKUN Niaga. Financing is repayable; a guarantee helps support a lender’s loan and is not a grant to your business.

When
Budget 2027 announcements; application windows and final terms need lender or agency confirmation.
Before relying on this benefit
Approval is not automatic. Check your business category, repayment ability, fees, security requirements and the specific scheme’s conditions.

Official information: MOF financing directory ↗

Sources: MOF summary, p. 41; TEKUN, p. 59, TEKUN programme table, p. 59

Who it affects: Companies buying qualifying machinery, ICT or software

Plan equipment and digital investment

What changed: Faster capital allowances for qualifying equipment and software are proposed to continue through 2030.

What you can do now

List planned purchases and obtain itemised quotes. Ask your tax adviser which items qualify, and keep invoices and the asset register before making a tax claim.

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Timing, conditions & sources

The proposal extends accelerated capital allowances for qualifying expenditure from 1 January 2027 to 31 December 2030. This lets qualifying companies claim capital allowances over two years; it is a tax treatment, not reimbursement of the purchase price.

When
Proposed for qualifying capital expenditure in 2027–2030; confirm final tax rules.
Before relying on this benefit
Local-manufacturer conditions apply to specified machinery. Only qualifying ICT, software and related costs are covered; do not assume every subscription or purchase qualifies.

Official information: HASiL ↗

Sources: Tax measures, appendix 28, p. 39

Who it affects: Employers and business owners with staff

Review payroll and staff benefits

What changed: Check minimum-wage coverage and a proposed deduction for employers paying eligible staff’s PTPTN loans.

What you can do now

Review your business’s wage coverage and payroll budget. Ask your tax adviser whether a voluntary PTPTN benefit qualifies before promising it to staff.

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Timing, conditions & sources

The RM2,000 minimum-wage announcement exempts MSMEs with sales below RM50 million. A separate proposal gives a tax deduction for eligible employers’ PTPTN repayments on behalf of staff during 2027–2028.

When
June 2027 for the wage announcement; proposed PTPTN deduction for payments from 1 January 2027 to 31 December 2028.
Before relying on this benefit
Confirm wage coverage under the implementing rules. For the PTPTN proposal, staff must be full-time, cannot be the owner or related to the employer, and cannot be charged in return for the repayment.

Official information: JTKSM ↗ · HASiL ↗

Sources: MOF wage announcement, p. 4, Tax measures, appendix 30, p. 41

Who it affects: Micro businesses and firms preparing to grow or export

Check grants and market support

What changed: SEJAHTERA MADANI grants of up to RM5,000 and export-market support are announced for specified groups.

What you can do now

Prepare a one-page plan explaining the equipment, skills or market you need. Use MOF’s named programmes to find the relevant agency and confirm eligibility before committing money.

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Timing, conditions & sources

The grant announcement targets 40,000 recipients, including micro traders, especially women, rural entrepreneurs and vulnerable groups. Export support includes Malaysia Go Global, Market Development Grant and eBizlink.

When
Budget 2027 announcements. The administering agencies must confirm application windows and eligible expenses.
Before relying on this benefit
A programme allocation is not a grant entitlement for every business. Check target-group restrictions, assessment criteria and whether costs need approval before spending.

Official information: MOF grant and export announcements ↗

Sources: MOF summary, p. 36

Your next step

Your Budget 2027 checklist

Small steps you can take now, and steps to take when the relevant rules or services are ready.

0 / 8 completed

Do now

When the relevant service or rules are ready

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Read the official documents · 2027

MOF budget speech ↗

PDF · 89 pages

MOF budget summary ↗

PDF · 75 pages

MOF tax measures ↗

PDF · 49 pages

Sources checked: 10 October 2026 · Malaysia time

Open MOF’s budget archive ↗