Budget 2027: What you’ll save, claim and get next year
Budget Madani 2027 was tabled by Prime Minister Anwar Ibrahim at the Dewan Rakyat this afternoon, and while plenty of it covers big national projects, a good chunk lands straight in your pocket. From a bigger individual tax relief to more free AI subscriptions and rebates on energy-efficient appliances, we went through the full speech so you don’t have to.
We’ve split everything by category, starting with the one most of you are here for:
Income tax and tax relief
RM12,000
- Individual tax relief, up from RM9,000. This is the first time the limit has been revised since 2010
18% and 24%
- Chargeable income between RM70,000 and RM100,000 is now taxed at 18%, one percentage point lower
- Chargeable income between RM100,000 and RM150,000 is now taxed at 24%, also one percentage point lower
30%
- Tax rate for those earning above RM1 million in chargeable income
Expanded tax relief categories
- Medical treatment now covers postnatal care services
- Care for parents and grandparents now covers all care expenses, not just health-related ones
- Sports equipment now includes sports shoes
- Education fees now cover all fields of study, plus tuition for your kids
- Lifestyle relief now covers AI subscriptions, as well as vaccination costs and adoption fees for pets from registered centres
- SOCSO relief now includes mandatory Lindung Kendiri contributions, with an additional relief of up to RM150 for voluntary Lindung 24 Jam and Lindung Kendiri contributions
Tech and gadgets
100,000 more free AI subscriptions
- The free AI subscription programme for young people gets another 100,000 subscriptions, and now covers newer AI apps including ChatGPT
RM200
- Rebate under Nur Madani for buying energy-efficient air-conditioners and refrigerators
16,000+ free courses
- The Platform Rakyat Digital offers free access to over 16,000 courses and Professional Certificate programmes through a partnership with Coursera
AI scam checker
- The National Scam Response Centre will develop an AI app that lets you check suspicious phone numbers, bank accounts or links before making a transaction
Better coverage
- Jendela will focus on bringing 4G to all Orang Asli villages next year, along with internet coverage across 7,000km of roads and 1,700km of railway
Insurance and healthcare
MediAsas plan
- An affordable medical plan launching from January 2027, with hospital bills based on the type of diagnosis and treatment so costs are easier to predict
- EPF members below 55 can pay MediAsas premiums using their Akaun Sejahtera
- SMEs with fewer than 75 employees get a first-year premium subsidy of RM200 per worker, capped at 50 workers per company
Clearer private hospital bills
- From 2027, private hospital bills will use standardised and transparent charge categories so patients understand exactly what they’re paying for
Other health schemes
- MySalam continues in 2027
- STR recipients and their spouses aged 40 and above get free health screening, medical equipment aid and cancer treatment incentives through PeKa B40
Cost of living
Up to RM150 a month
- Sara for all STR recipients, or up to RM1,800 a year, benefitting up to 9 million recipients
- Sara can now be used to buy fresh goods at 216 Fama farmers’ markets nationwide
RM100, twice
- Sara Madani for all Malaysians aged 18 and above who aren’t STR recipients, including the M40 group. It will be paid once before Aidilfitri and again ahead of the 70th Merdeka celebrations
RM2,000 minimum wage
- Up from RM1,700, effective June 2027. SMEs with sales below RM50 million are exempted for now
- A new minimum wage of RM2,500 a month is also being introduced for semi-skilled and graduate jobs
14% interest cap
- Basic credit cards with interest rates of no more than 14% a year are now being offered by Alliance Bank, Maybank and CIMB
Zero stamp duty
- Full stamp duty exemption for opening savings and current accounts from 1 January 2027
Housing
Up to RM500,000
- Full stamp duty exemption on loan agreements and instruments of transfer for first homes priced up to RM500,000
Up to RM750,000
- Full stamp duty exemption on the first RM500,000, and a 50% exemption on the balance
Both apply to sale and purchase agreements signed from 1 January 2027 to 31 December 2030.
Transport
My50 and MyKomuter50
- My50 continues for Prasarana bus and rail users in the Klang Valley
- The new MyKomuter50 pass for KTM Komuter users can save you up to RM160 a month on average
- Free passes continue for school students, OKU and children below six
Entertainment and travel
No more entertainment duty
- Tickets for local films and theatre performances in the Federal Territories are fully exempted from entertainment duty from 2027
- Arts, culture, entertainment and sports events held at Stadium Merdeka and Stadium Negara are also exempted
RM10,000
- Duty-free purchase limit for visitors to Langkawi and Labuan, provided you stay at least 48 hours
Students and young adults
PTPTN
- Repayment deferment for borrowers earning up to RM2,500 a month in 2027
- Minimum repayment of just RM50 for those earning between RM2,500 and RM3,000
- A 10% discount for borrowers with no arrears who repay consistently
Other student aid
- FlySiswa flight ticket aid raised to RM500, from RM400
- Form Six students get a RM2,500 living allowance, matching matriculation students
- Bantuan Awal Persekolahan raised to RM200 per student, from RM150
- A RM100 e-wallet incentive under the new Budi Belia programme for youths who complete set volunteering hours with selected NGOs
- Every Malaysian will be automatically registered as an EPF member upon turning 18
Gig workers
Up to RM227 more a month
- Net income for e-hailing drivers at the median level is expected to rise by up to RM227 a month, and up to RM100 for p-hailing riders, under a RM160 million package co-funded by the government and Grab starting 2027
- A 35% PERKESO matching contribution incentive for e-hailing and p-hailing workers, rising to 50% if platforms also contribute
- EPF matching contribution of up to RM600 a year, or RM6,000 in total, for e-hailing and p-hailing workers
Elderly care
6% service tax
- Service tax on elderly care services drops from 8% to 6% from 1 January 2027, with a full exemption for care fees of up to RM96,000 a year
Bear in mind that these are budget proposals, so the finer details, including when some measures kick in, will only be confirmed once they’re passed and gazetted.
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