Government Gives Assurance to Protect the People From the Impact of the West Asia Conflict

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has assured that the government will continue to protect the people, ensure the supply of essential goods and support the sustainability of businesses and jobs should the conflict in West Asia escalate further.

Anwar, who is also Finance Minister, said the government would continue to shield Malaysians from the impact of the conflict in the region through Budget 2027.

“Through next year’s budget, financial assistance and purchasing power will be enhanced, including by increasing individual tax relief to RM12,000,” he said during the Prime Minister’s Question Time (PMQT) session in the Dewan Rakyat today.

He said individual income tax rates would also be reduced by one percentage point for those earning between RM70,000 and RM150,000, a measure expected to provide additional disposable income of up to RM1,600 to five million taxpayers.

“Allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) have been increased from RM15 billion to RM16 billion, the highest in history.

“The SARA assistance rate will be increased to as much as RM150 per month, while eKasih recipients will receive up to RM250 per month,” Anwar said.

He was responding to a question from Howard Lee Chuan How (PH-Ipoh Timur) regarding the government’s measures to reduce national debt to a more sustainable level and the extent to which the current fiscal position provides room for government intervention to protect the economy and public well-being should the conflict in West Asia worsen.

Up to 13 million Malaysians aged 18 and above who are not STR recipients, including those in the M40 income group, will receive RM100 in SARA MADANI assistance on two occasions in 2027.

Anwar said that under BUDI MADANI, Malaysians would continue to enjoy subsidised RON95 petrol of up to 300 litres at RM1.99 per litre, compared with the actual price of RM3.87 per litre, as well as subsidised diesel of up to 400 litres at RM2.10 per litre, compared with RM4.87 per litre.

He said the Early Schooling Assistance would also be increased from RM150 to RM200, benefiting 5.3 million pupils.

According to the Prime Minister, the minimum wage will also be raised from RM1,700 to RM2,000 per month beginning June 2027, benefiting more than four million workers.

In addition, the living wage at government-linked investment companies (GLICs) and government-linked companies (GLCs) will increase from RM3,100 to RM3,400, benefiting 230,000 employees.

“Budget 2027 also supports the sustainability of micro, small and medium enterprises (MSMEs), including by increasing loan facilities and financing guarantees from RM50 billion to RM57 billion.

“Bank Negara Malaysia’s Small and Medium Enterprise (SME) Stability Assistance Facility will be increased by RM5 billion, bringing the total allocation to RM10 billion,” Anwar said.

Meanwhile, he said Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC) would also provide financing guarantees of up to RM32 billion.

“SJPP coverage will be expanded to mid-sized companies across all sectors, while RM2 billion under CGC will be specifically allocated to the semiconductor sector,” the Prime Minister said.

Additionally, Anwar said the tax rate for MSMEs would be reduced by one percentage point for taxable income of up to RM600,000, while flexibility in the implementation of Phase 4 of e-Invoicing would be extended until the end of 2027.

BERNAMA