Budget 2027 Focuses On Easing Living Costs, Improving Public Well-Being - Amir Hamzah

KUALA LUMPUR, Oct 29 (Bernama) -- Efforts to ease the cost-of-living burden and improve public well-being remain a government priority under Budget 2027, with a focus on raising incomes, strengthening social assistance and providing better-quality essential services.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the government understood the pressures faced by the public, particularly parents managing household and school expenses and workers striving to make ends meet until the end of the month.

He said the cost of living remained a major concern among the public, prompting the government to strengthen assistance, including the Rahmah Basic Aid (SARA), which has reached its highest level ever.

“As of Oct 22, RM3.6 billion had been disbursed to Rahmah Cash Aid (STR) recipients through three payment phases. In total, nearly RM12 billion in STR and SARA assistance had been channelled to eligible recipients

“Nearly nine million recipients have used SARA, recording RM6.1 billion in transactions, or a utilisation rate of 99.7 per cent. Meanwhile, more than 20 million recipients have benefited from SARA Untuk Semua, with transactions exceeding RM1.9 billion, representing a utilisation rate of 92 per cent,” he said.

Amir Hamzah said this when winding up the policy-stage debate on the Supply Bill 2027 (Budget 2027) for the Finance Ministry in the Dewan Rakyat today.

To further ease household expenses, he said the allocation for STR and SARA would be increased to RM16 billion in 2027, with monthly SARA assistance raised to RM150, or RM1,800 annually.

Those registered under eKasih would receive an additional allowance of up to RM100, bringing their monthly SARA assistance to RM250, or RM3,000 a year.

The government would also expand SARA purchases to include fresh produce at 216 Federal Agricultural Marketing Authority (FAMA) Farmers' Markets and Tamu starting in 2027, while encouraging more small grocery shops and cooperatives to join the SARA Partner Merchant network.

“The SARA Partner Merchant network now comprises nearly 15,000 outlets, up from about 700 in 2024, with almost 7,000 being small grocery shops and cooperatives. This expansion not only makes it easier for the public to access assistance but also supports the sustainability of micro, small and medium enterprises (MSMEs) and local retailers,” he said.

On income growth, Amir Hamzah said the government had agreed to raise the minimum wage from RM1,700 to RM2,000 a month from June 2027, benefiting more than four million workers. It was also developing a minimum wage framework for semi-skilled jobs, with an initial rate of RM2,500 a month.

He said the living wage for employees of government-linked investment companies (GLICs) and government-linked companies (GLCs) would increase from RM3,100 to RM3,400 a month in 2027, benefiting 230,000 workers.

The government was also addressing the welfare of about 600,000 e-hailing and p-hailing drivers through Gig Consultative Council discussions on minimum earnings and a RM160 million co-financing package with Grab to raise their monthly net income.

Other measures included increasing the Social Welfare Department's (JKM) allocation to RM3.3 billion. This would enable monthly assistance for bedridden persons with disabilities (PWDs) to rise to RM600, while the income eligibility threshold for the PWD Workers' Allowance would increase to RM2,000.

To ease parents' financial burden, the Early Schooling Aid would be raised from RM150 to RM200 for all 5.3 million pupils, with RM1 billion allocated for the initiative.

“Another RM200 million has been allocated to strengthen outsourced patient treatment programmes to reduce waiting times, while the voluntary basic medical insurance and takaful plan, MediAsas, is scheduled to be launched in late January 2027,” he said.

Amir Hamzah added that Employees Provident Fund (EPF) members below 55 would be allowed to pay MediAsas premiums through their Sejahtera Account as part of efforts to ensure the plan's long-term cost sustainability.

-- BERNAMA