On 9 October 2026, YAB Dato’ Seri Anwar Ibrahim tabled Budget 2027, themed “Reaching for the Skies, Rooted in the Earth” (Menggapai di Langit, Mengakar di Bumi). The Budget focuses on cost-of-living support, tax relief, business growth, digital transformation, talent development and sustainability, supported by stronger governance and fiscal discipline. Download our budget highlight bulletin Tax2share for more information.
1. MSME, Bumiputera & Subsidies:
- Lower income tax rates for MSMEs
- Expanded business financing and guarantees
- Greater procurement opportunities for Bumiputera companies
- Entrepreneur development and market access support
2. ESG & SDG (Environmental, Social, Governance & Sustainable Development Goals):
- Renewable energy, solar and energy storage projects
- Extended green investment tax incentives
- Climate financing and decarbonisation
- Conservation, water infrastructure and flood mitigation
3. Digital, IT, AI & Technology:
- Sovereign AI Cloud and wider access to AI tools
- Research, development and commercialisation
- Stronger cybersecurity and scam prevention
- Improved connectivity and digital public services
4. Islamic Finance & Economy:
- Tax incentives for Islamic fund management and sukuk
- Tokenised retail savings sukuk
- Halal certification and industry support
- Expanded support for Islamic education and institutions
5. Borneo (Sabah & Sarawak):
- Increased federal allocations and special grants
- Progress on MA63 commitments
- Roads, electricity and rural connectivity
- Sibu Special Economic Zone and cross-border trade
6. TVET & Professional Talent Development:
- Increased TVET funding and training opportunities
- Professional development and AI certification
- Tax deductions for employer-supported training
- Expanded education and upskilling tax relief
7. Women Empowerment & Social Welfare:
- Equipment and training support for women entrepreneurs
- Expanded microfinancing for small entrepreneurs
- Increased STR and SARA assistance
- Support for the elderly, persons with disabilities and gig workers
Budget 2027 aims to ease current financial pressures while strengthening Malaysia’s capacity for sustainable growth through investment, skills development and better public services.
Want to know more? Explore the full breakdown of the Malaysia 2027 Budget highlights in our Tax2share Bulletin.
to access the details and stay ahead of the latest tax updates!