Malaysia to raise minimum wages, expand tax relief in $112.5 billion 2027 spending boost
The budget also expands tax relief to RM12,000 and exempts smaller firms from the new wage for now, affecting more than four million workers.
- On Friday, Prime Minister Anwar Ibrahim unveiled a 459.8 billion ringgit budget and announced the minimum wage would rise to 2,000 ringgit from June next year, targeting more than four million workers.
- Anwar's administration aims to boost household incomes and support small businesses ahead of a potential election, though fiscal pressures from higher global oil prices and rising energy costs complicate the spending plans.
- Anwar introduced a minimum salary of 2,500 ringgit for semi-skilled workers and graduates as part of broader income reforms. SMEs earning less than 50 million ringgit remain exempt for now to allow business adjustments.
- Officials expanded individual tax relief from 9,000 ringgit to 12,000 ringgit annually, marking the first revision since 2010 to help citizens manage rising living costs amid inflationary pressures.
- Malaysia's economy is projected to expand between 4.2% and 5.2% next year, with the government forecasting the fiscal deficit will decline to 3.3% as domestic demand remains resilient.
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13 Articles
Malaysia to raise minimum wages, expand tax relief in spending boost for 2027 budget
Malaysia Prime Minister Anwar Ibrahim on Friday (Oct 9) pledged to implement reforms that he said would allow the country's strong economic growth to trickle-down to ordinary Malaysians.
Anwar Ibrahim said this step is a government strategy to narrow the gap between productivity and workers' wages.
Malay Mail
newmalaysiatimes.comBudget 2027: Minimum wage raised to RM2,000 effective June 2027
KUALA LUMPUR, Oct 9 — The Malaysian government today announced an increase in the minimum wage from RM1,700 to RM2,000, effective June 2027.Prime Minister Datuk Seri Anwar...
Perdana Menteri Anwar Ibrahim berkata lebih empat juta pekerja akan mendapat manfaat daripada until gaji minimum spring itu.
Malaysia to raise minimum wages, expand tax relief in $112.5 billion 2027 spending boost
Malaysia unveiled a host of tax relief measures on Friday and said it would raise minimum wages next year, as the government looked to boost household incomes and support small businesses ahead of a possible election despite growing fiscal pressure from a jump in global oil prices.
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