Malaysia unveils 2027 national budget to ease living costs, boost tech

KUALA LUMPUR, Oct. 9 (Xinhua) -- Malaysian Prime Minister Anwar Ibrahim unveiled the national budget for 2027 on Friday with a focus on easing the cost of living through tax breaks, a higher minimum wage and other measures while also seeking to develop the country's burgeoning technology sector.

This photo taken on Jan. 29, 2024 shows a night view near Petronas Twin Towers in Kuala Lumpur, Malaysia. (File photo: Xinhua)

Malaysia's Budget 2027, totaling 459.8 billion ringgit (112.5 billion U.S. dollars), aims to turn resilient economic growth into real gains for the people with better wages, smarter targeted support, stronger fiscal discipline and a bold push towards higher-value industries, Anwar, who is also finance minister, told parliament in his budget speech.

Among measures aimed at easing the cost of living is raising the minimum wage to 2,000 ringgit from the current 1,700 ringgit starting in June 2027, with the exception of micro, small and medium-sized enterprises with annual sales below 50 million ringgit.

The government will also introduce a minimum monthly salary of 2,500 ringgit for semi-skilled workers and graduates as the initial step in reforming the wage framework. Middle-class citizens will benefit through increased individual income tax relief and reduced tax rates for selected income brackets.

Meanwhile, the government will extend green tax incentives to Dec. 31, 2030. Companies investing in green technology projects, electric vehicle charging stations or green assets for their own use will be eligible for up to 100 percent investment tax allowances.

A 100 million ringgit fund will support early-stage semiconductor and advanced manufacturing companies in Penang state as part of efforts to strengthen regional industrial development and attract investment beyond established economic centers. Other technology hubs in other states will also be supported to attract global semiconductor investments, create skilled jobs and expand business opportunities for local companies.

It will also implement a preferential five percent tax rate on income generated from global services hub activities for new companies, starting on Jan. 1, 2027, to facilitate business operations and make it easier for global companies to operate in Malaysia.