Malaysia’s Budget 2027, tabled on 9 October 2026, outlines a RM510 billion overall budget aimed at strengthening economic growth, supporting businesses and easing the cost of living. The Budget introduces several proposed tax and regulatory changes that businesses, employers and individual taxpayers should take note of.
Key measures include reduced corporate income tax rates of 14% and 16% for qualifying SMEs, an increase in the minimum wage to RM2,000 from June 2027 (with an announced exemption for MSMEs with annual sales below RM50 million), and new requirements for non-SME companies to claim tax deductions on salary payments from YA 2028. Individual taxpayers will also benefit from an increase in basic personal tax relief to RM12,000, while the highest personal income tax rate will rise to 30% on chargeable income exceeding RM1 million.
Explore our Malaysia Budget 2027 infographic below for a concise overview of the key tax changes and what they could mean for your business and personal tax planning.
Note: Budget 2027 tax proposals are subject to legislative approval and final implementation guidelines.
Know your Budget 2027 position before YA 2027 begins
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