adminKUALA LUMPUR: The increase in individual tax relief to RM12,000 from RM9,000 under Budget 2027 is expected to reduce taxpayers’ monthly tax deductions starting January next year.
Prime Minister’s Office Economic Advisor Nurhisham Hussein said the move would provide immediate benefits, especially to the middle-income group (M40), through a reduction in monthly tax deductions from their salaries.
“Individual tax relief has not changed for 20 years, so I think the move is a positive one. In fact, it is one of the things the government has successfully implemented in the last three years, thus resolving many accumulated issues.”
“I mean, civil servant salaries were not adjusted for about 15 years before the adjustment was implemented last year. The same goes for pensions, including the transition to the EPF (Employees Provident Fund) which is a major reform,” he said in an audio broadcast of “Ngopi Dengan Zafrul”.
Commenting on the 2027 Budget, Nurhisham said the government continued to balance fiscal consolidation efforts with measures to ease the burden of the people’s cost of living, in the face of global uncertainty following the war in Ukraine and conflicts in West Asia, in addition to meeting the needs of small and medium enterprises (SMEs).
He said public feedback on the budget was generally positive, particularly the expansion of the Basic Rahmah Contribution (SARA) which covers more basic necessities, including fresh produce and chicken.
Nurhisham said reforms for the p-call sector are expected to be considered next year to strengthen regulation, increase worker protection and ensure a guaranteed minimum income level.
Regarding government expenditure, he said the Monitoring Unit under the Prime Minister’s Department monitors the ministry’s expenditure based on key performance indicators (KPIs), identifies underutilised allocations and helps address implementation issues.
He said excessive spending could also invite scrutiny, as the government seeks to ensure that allocations are used effectively.
Meanwhile, Malaysian Investment Development Authority (MIDA) Chairman Tengku Datuk Seri Zafrul Abdul Aziz, who conducted the audio broadcast, described the 2027 Budget as a people-friendly budget by balancing the provision of assistance to the people.
He said prudent fiscal management was important because excessive spending could affect market confidence and have political implications.
“If you make fiscally irresponsible decisions, the market will punish you and it can also have political implications. We have seen leaders around the world suffer the consequences of irresponsible management of public finances,” said the former Minister of Investment, Trade and Industry and Minister of Finance.
Tengku Zafrul stressed that effective implementation and communication as well as tangible results are important to ensure that the benefits of the budget can be realised as promised, thus increasing the people’s confidence in government policies.
Former Bangi Member of Parliament Ong Kian Ming also appeared in the first episode of the audio broadcast titled “Budget 2027: Can It Be Delivered?” which was uploaded on YouTube.
— BERNAMA
