LIVE | Budget 2027: Education Ministry gets highest allocation at RM69b

LIVE | Prime Minister Anwar Ibrahim is tabling Budget 2027 in Parliament.

Malaysiakini brings you live updates.

Mandated telematics systems for commercial vehicles

4.39pm - Commercial vehicles will be mandated to install telematics systems to monitor speed, location, and risky driving behaviour, with the system also including an alcohol detector.

Anwar says voluntary implementation will run until 2027 while the government develops a driver database for enforcement.

Socso will also provide health screening vouchers for commercial vehicle drivers to detect health risks that could impair their driving ability.

Anwar also reiterates Putrajaya’s intention to amend the Road Transport Act 1987 to require drivers under the influence of alcohol or drugs to pay compensation to victims affected in road incidents.

My50 passes to continue

4.36pm - Public transportation users in Kuala Lumpur can continue to buy My50 passes next year.

In addition, the government is also introducing a MyKomuter50 pass for KTM Komuter users.

Repayment deferment for PTPTN borrowers

4.32pm - National Higher Education Fund Corporation (PTPTN) loan borrowers with a monthly income of up to RM2,500 will be granted a repayment deferment in 2027.

A minimum repayment of RM50 will be imposed on borrowers with an income between RM2,500 and RM3,000, with the measure benefiting over 400,000 PTPTN borrowers.

Additionally, borrowers who maintain no arrears and make regular repayments will be given a 10 percent discount.

Employers who make PTPTN loan repayments on behalf of their employees will receive a tax deduction, with the incentive covering repayments made from Jan 1, 2027 to Dec 31, 2028.

RM2.5k cost of living allowance for Form 6 students

4.30pm - Form 6 students will be receiving a RM2,500 cost of living allowance, similar to that given to their peers in matriculation.

Early schooling aid will be increased from RM150 per child to RM200. Anwar said those with four children will get RM800 at the start of the school year.

He wants the aid to be distributed at schools so that parents can meet their children's teachers, saying there have been issues with getting parents to participate in their children's schooling and upbringing.

Education Ministry gets highest allocation

4.26pm - The Education Ministry bags the Budget 2027’s highest allocation at RM69 billion, compared to this year’s RM66.2 billion.

This includes an RM1 billion increase to RM2 billion for repairing and maintaining all types of schools.

The allocation for national type schools rises to RM900 million, followed by RM100 million for SJKC and RM50 million for SJKT.

The allocation for religious schools, tahfiz institutions, and pondok schools registered under the Islamic Development Department (Jakim) rises to RM200 million, with the allocation’s scope expanded to cover institutional operational assistance.

RM1.3 billion is to upgrade 682 dilapidated schools, particularly in Sabah and Sarawak.

MediAsas insurance rollout to go ahead

4.24pm - Anwar announces that the government will go ahead with the government-backed MediAsas insurance rollout next year.

While he did not announce how much premiums will cost, it was previously reported that monthly payments will be as low as RM60, with copayments when treatments are sought at private hospitals.

Anwar says during his speech that Employee Provident Fund contributors can pay for MediAsas using their Akaun Sejahtera (Account 2).

Full-time placements for doctors soon

4.22pm - Anwar says that the contract doctor problem will be put to an end, with 9,000 full-time placements to be offered in 2027.

Meanwhile, basic posting allowances will be increased from RM100 to RM200.

In addition, following the tragic flying doctor accident in Sarawak, Anwar said that incentive to medical workers working in this service will be increased from RM30 to RM100.

RM1.5b allocations for persons with disabilities

4.20pm - Allocations for persons with disabilities increase to RM1.5 billion to benefit over 300,000 individuals.

This includes an RM600 assistance rate - marking an RM100 increase - for the care of bedridden persons and chronic patients.

While the income threshold to qualify for the OKU workers allowance goes up from RM1,700 to RM2,000, the allowance for students with special educational needs increases from RM150 to RM200 per month.

The incentive for special educational needs teachers increases from RM250 to RM300 per month, benefiting 20,000 such teachers.

Reduced service tax rate for elderly care

4.19pm - Effective Jan 1, 2027, the service tax rate for elderly care is reduced from eigh percent to six percent.

There is also a full tax exemption on care fees up to RM96,000 per year.

To support the elderly care system, RM40 million will be allocated to HRD Corp to train 8,000 caregivers, which will also mean more jobs in this field.

Duty exemptions for first-time house buyers

4.10pm - First-time house buyers may want to wait until Jan 1 before signing their sales and purchase agreements (SPA).

The government will provide full stamp duty exemptions on loan agreements and instruments of transfer for first home purchases priced up to RM500,000.

For houses costing up to RM750,000, stamp duty will be exempted for the first RM500,000, while the remaining balance will receive a 50 percent discount.

This applies to SPAs signed between Jan 1, 2027 and Dec 31, 2030.

Duty exemption for events at Stadium Merdeka, Stadium Negara

4.08pm - Arts, culture, entertainment, and sports events held at Stadium Merdeka and Stadium Negara will be exempted from entertainment duties, as part of efforts to revive the nation’s heritage.

The Kuala Lumpur City Hall (DBKL) will also build a 22km covered walkway connecting landmarks such as Masjid Negara, Dataran Merdeka, and Central Market.

Anwar says the walkways will also be built from residential areas to business premises, schools, clinics, and public transport stations.

Rural road projects receive an RM2.3 billion allocation, while basic rural infrastructure projects are allocated RM3.3 billion worth of funds for matters such as installing streetlights.

More PSD scholarships for Sabah and Sarawak students

4.05pm - The government will double the number of Public Service Department (PSD) scholarships offered to students in Sabah and Sarawak.

Anwar said this will benefit 4,200 East Malaysians each year.

Living wage benchmark: PM urges private sector to follow suit

4.01pm - Anwar urges private sector employers to follow suit in the example set by government-linked investment companies and government-linked companies in raising the monthly living wage benchmark to RM3,400 from RM3,100.

The move benefits around 230,000 workers, with several major-sector employers, such as those in banking as well as oil and gas, having set more reasonable wages.

Flash floods: RM100m to build more retention ponds, river maintenance

4pm - Anwar announces major plans to tackle flash floods in the Klang Valley, with RM100 million allocated to build more retention ponds and river maintenance.

There will also be efforts to tackle flooding and clean water supply in Kelantan, including plans for a Lebir Dam Project.

Additionally, the Madani government intends to turn Penang into a Finance Technology Hub, with Khazanah Nasional and InvestPenang creating a RM100 million fund.

RM2k minimum wage effective June 2027

3.55pm - The minimum wage rate increases from RM1,700 to RM2,000 effective June 2027.

Micro, small, and medium enterprises (MSMEs) with sales revenue below RM50 million are exempted from the measure.

Anwar says more than four million workers will benefit from the new rate, with the government also agreeing to introduce a minimum wage for semi-skilled jobs and graduates at RM2,500 per month as a starting point.

RM12,000 for individual tax relief

3.53pm - For the 2027 tax assessment year - meaning taxes that you'll file in 2028 - individual tax relief will be increased from RM9,000 to RM12,000.

Meanwhile, the income tax rate for residents will be lowered by one percentage point.

Anwar also announces the broadening of other tax relief measures to cover:

• Postpartum care

• Relief for elderly care to cover all costs, not just healthcare

• Sports shoes

• Education fee relief to cover all forms of studies, including tuition classes

• Subscription to AI services

• Vaccines

• Pet adoption costs from registered shelters.

Sara to go up to RM150 per month

3.50pm - The maximum amount of Rahmah Basic Necessities Aid (Sara) for Rahmah Cash Aid (STR) recipients will go up to a maximum of RM150 per month, or RM1,800 per year.

This is double the amount of Sara given to STR recipients compared to the RM900 under Budget 2026.

In addition, Sara can also be used for fresh goods now.

Total budget for subsidies, aid, incentives to reach over RM80b

3.49pm - Putrajaya’s total budget for its subsidies, assistance, and incentives for the rakyat will reach over RM80 billion.

This includes fuel subsidies, which Anwar says are expected to remain at RM40 billion, as well as a nearly RM3.3 billion allocation for the Social Welfare Department.

Budi95 a national success, says PM

3.44pm - Anwar lauds Budi95 as a national success, while proclaiming his Madani government is the only one that is brave enough to make subsidies targeted.

He said the savings from targeted subsidies have been translated into other forms of aid such as the Rahmah Cash Aid and Rahmah Basic Necessities Aid (Sara).

Small enterprises must have space to grow - PM

3.41pm - Anwar says a truly successful economy should not be judged based merely on its growth rate, but also on how it addresses the people’s living concerns.

As such, the premier says the question for Putrajaya extends beyond how big an economy it should build, to whether such growth creates space for families to build savings and for workers to enjoy more dignified wages.

Small enterprises, he adds, must also be given space to grow.

RM459.8b for 2027

3.30pm - The government is allocating RM459.8 billion for Budget 2027.

This is RM40.6 billion more than the last tabled budget.

One of the big challenges in this budget is the higher cost of subsidies as fuel prices remain high.

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