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SARA assistance of up to RM150 a month is being extended to every STR recipient. For Malaysians aged 18 and above who do not receive STR, Budget 2027 announces a separate RM100 payment on two occasions.
That is the grocery-side headline. There are also changes to wages, personal tax relief, first-home stamp duty and school assistance that could matter well beyond the Budget broadcast.
Prime Minister and Finance Minister Anwar Ibrahim presented the Fifth MADANI Budget on 9 October. Here are the announcements worth checking against your own household, work and plans for next year.
More SARA, with different support for different recipients
The combined allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) rises from RM15 billion to RM16 billion.
All STR recipients are to receive SARA assistance of up to RM150 monthly, or RM1,800 annually, benefiting up to nine million Malaysians. The announced expansion also brings fresh and perishable produce at 216 FAMA farmers’ markets and tamu into the SARA network.
For adult citizens outside STR, the separate SARA MADANI assistance totals RM200: RM100 ahead of Aidilfitri and RM100 in conjunction with the 70th National Day in 2027. The speech says this will reach up to 13 million people, including the M40.
RM2,000 minimum wage from June, with an exemption
The minimum wage is to rise from RM1,700 to RM2,000 in June 2027. The speech exempts MSMEs with annual sales below RM50 million, so workers should not assume every employer is covered by the increase.
A separate RM2,500 monthly minimum is announced for semi-skilled workers and graduates, although its detailed coverage and start date are not specified.
GLICs and GLCs have also committed to raising their living-wage benchmark from RM3,100 to RM3,400. That commitment is expected to benefit 230,000 workers; it is distinct from the national minimum-wage rule.
Personal tax relief rises to RM12,000
The proposed individual tax relief threshold increases from RM9,000 to RM12,000. This reduces the income used to calculate tax; it is not a RM12,000 payment.
For resident individuals, the rate on chargeable income from RM70,001 to RM100,000 falls to 18%, while the RM100,001–RM150,000 band falls to 24%. These are marginal bands, not flat rates on your entire income.
Relief categories also widen to include items such as postpartum care, sports shoes, children’s tuition and AI software subscriptions. Pet vaccinations and adoption from registered shelters enter lifestyle relief. Actual claims depend on the applicable limits and rules.
First-home buyers get a stamp-duty break
Full stamp duty exemption is proposed on loan agreements and instruments of transfer for first homes priced up to RM500,000.
For homes priced up to RM750,000, the first RM500,000 is fully exempt, with 50% exemption on the balance. The announcement covers sale and purchase agreements executed from 1 January 2027 to 31 December 2030.
SJKP will also provide up to RM20 billion in housing financing guarantees, targeting 80,000 first-time buyers, particularly the self-employed without fixed incomes. A guarantee can help with financing access; buyers still have a loan to repay.
RM200 for school, RM500 for student flights
Early Schooling Aid (BAP) rises from RM150 to RM200 per eligible pupil. For a family with four eligible children, that is RM800 for the 2027 school session.
Form Six students are to receive a living allowance totalling RM2,500, while FLYsiswa flight-ticket assistance increases from RM400 to RM500 for eligible public higher-education students.
PTPTN borrowers earning up to RM2,500 monthly are to receive repayment deferment in 2027. The speech also announces a RM50 minimum repayment for the RM2,500–RM3,000 income range and a 10% discount for borrowers without arrears who repay regularly. PTPTN will need to clarify the shared RM2,500 boundary.
Gig workers and public servants have separate packages
A RM160 million package jointly funded by the Government and Grab covers income improvements, vehicle maintenance, insurance and SOCSO contributions for e-hailing and p-hailing workers. EPF matching support of up to RM600 annually is also announced for eligible drivers, capped at RM6,000 over a lifetime.
Eligible civil servants at Premier Grade B and below, including contract appointees, are to receive RM1,500 in total special financial assistance. Government retirees, including pensionable and non-pensionable veterans, are to receive RM750.
Both totals are to be disbursed in two payments, before Aidilfitri and ahead of the independence anniversary. They are not the amount payable on each occasion. The minimum pension also rises from RM1,000 to RM1,350 monthly.
Healthcare, disability support and the daily commute
The Health Ministry receives RM47.7 billion, up from RM46.5 billion, with more than 9,000 contract doctors to be offered permanent posts in 2027.
Monthly assistance for bedridden people with disabilities and chronically ill patients rises from RM500 to RM600. The special-needs student allowance rises from RM150 to RM200 monthly.
For commuters, My50 continues and MYKOMUTER50 is introduced. NUR MADANI also offers rebates of up to RM200 for qualifying energy-efficient air conditioners and refrigerators.
Small businesses get tax changes and equipment support
Qualifying MSMEs’ proposed tax rates fall to 14% on the first RM150,000 of taxable income and 16% on the next band up to RM600,000.
SEJAHTERA MADANI receives RM200 million for equipment and training support targeting 40,000 recipients, particularly women. First-time halal certification applicants among MSMEs are offered matching grants of up to RM5,000.
There is also RM6.6 billion in microfinancing. That belongs in a different column from grants: financing generally has to be repaid.
The RM510 billion headline needs unpacking
The speech’s RM510 billion total combines RM459.8 billion in federal operating and development expenditure with wider investments. Sabah receives RM18.7 billion in federal allocations and Sarawak RM16.2 billion.
For your own planning, start with eligibility and timing. Some changes begin in January, the RM2,000 wage floor starts in June, and several programmes still need detailed rules. Our interactive dashboard lets you explore 86 highlights by topic, sector or ministry, with a fuller explanation behind every card.
Sources & further reading
Prepared with AI assistance from linked reporting. The cover is an AI-generated editorial illustration. Spotted something we should correct?