Budget 2027 for households: SARA RM150 a month, BAP RM200 and RM12,000 tax relief

Budget 2027 was tabled in the Dewan Rakyat on Friday, 9 Oct 2026, by the Prime Minister, who is also the Finance Minister. The list below only covers measures that directly affect household finances. Everything is taken from the Budget 2027 Speech, the Summary of Budget 2027 Measures and the Tax Measures document published by the Ministry of Finance (MOF).

The speech presented the Supply Bill (2027) for its second reading. The tax changes are written as "proposals" in the Tax Measures document, so current rates and reliefs remain until those changes take effect.

Quick table: measure, amount, who and when

Cash aid: STR and SARA allocation rises to RM16 billion

According to the speech (paragraph 26), the 2027 allocation for STR and SARA is RM16 billion, compared with RM15 billion this year. Every STR recipient will receive SARA of up to RM150 a month.

The MOF summary lists SARA of RM1,800 a year for households earning below RM2,500, RM1,200 for RM2,501–RM5,000, and RM600 for senior citizens without a spouse and singles. Poor and hardcore poor households qualify for Monthly SARA of up to RM250 a month.

SARA will also be usable for wet and fresh produce at around 216 FAMA Farmers' Markets (Pasar Tani). STR amounts by category are on the STR hub, and SARA MADANI details are in the SARA 2027 article.

School and studies: BAP RM200, more relaxed PTPTN

A family with four children in school will receive RM800 in BAP for the 2027 session, and the aid is distributed at schools (paragraph 98). The distribution date has not been announced; follow the Aid Payment Calendar.

For PTPTN, the 10% discount is given to borrowers with no arrears who repay regularly. The MOF summary states that the RM2,500 and RM3,000 limits refer to gross monthly income.

Wages and savings: minimum wage RM2,000 from Jun 2027

• The minimum wage rises to RM2,000 from Jun 2027 (paragraph 32). To see the effect on your net salary, use the net salary calculator.
• Every citizen will be automatically registered as an EPF (Employees Provident Fund) member on reaching the age of 18. The start date has not been announced.
• E-hailing and p-hailing drivers are offered EPF matching contributions of up to RM600 a year or RM6,000 over a lifetime. The MOF summary mentions this incentive through i-Saraan, i-Saraan Plus and i-Suri, including for housewives.
• EPF members aged 55 and 60 can choose the i-Emas scheme for monthly withdrawals.
• EPF members below 55 can pay MediAsas Plan premiums through the EPF Wellbeing Account (Akaun Sejahtera). The plan launches from January 2027.

Income tax: proposals from YA2027

The Tax Measures document (Appendices 1 to 9) proposes the following changes, all from YA2027:

• Individual relief rises to RM12,000. It has not been revised since 2010.
• The 19% rate falls to 18%. A new band of RM100,001–RM150,000 is taxed at 24%, compared with 25% now.
• Chargeable income above RM1 million is taxed at 30%, compared with above RM2 million now.
• Medical treatment (limit RM10,000) covers postnatal care, capped at RM3,000.
• Care of parents and grandparents covers all care expenses, not only health.
• Sports relief (limit RM1,000) covers sports shoes up to RM300.
• Lifestyle relief (limit RM2,500) covers AI app subscriptions and pet adoption costs.
• Children's classes or tuition in STEM, arts, languages and religion can be claimed within a RM2,000 limit, shared with self-improvement courses not related to work.

According to the speech (paragraph 31), these measures give up to RM1,600 in extra disposable income to about 5 million taxpayers. The proposals start from year of assessment 2027, which covers income for 2027. You can estimate your tax with the tax calculator.

Cost of living, housing and utilities

• Fuel subsidies are expected to remain high at RM40 billion. BUDI95 eligibility was already raised to 300 litres a month before the Budget; see the BUDI95 guide.
• The electricity bill protection level was raised from 600 kWh to 800 kWh a month, also before the Budget (paragraph 24).
• NUR MADANI rebate of up to RM200 for a five-star refrigerator or air conditioner, and RM100 for four-star.
• Jualan RAHMAH MADANI sales target 30 thousand events, and Jualan Agro MADANI sells farm produce up to 30% cheaper.
• Service tax on elderly care falls from 8% to 6% from 1 Jan 2027, with a full exemption for care fees of up to RM96,000 a year at registered centres.
• My50 continues at RM50 a month, and MyKomuter50 is introduced for KTM Komuter users.

What is not final yet

Payment dates for SARA, SARA MADANI and BAP have not been announced. The income tax and stamp duty changes are still proposals in the Tax Measures document. We will update the Aid Payment Calendar as soon as official dates are released.

Beware of fake messages

A Budget is usually followed by viral messages offering "new aid". Check STR only at bantuantunai.hasil.gov.my, and never give your MyKad number, OTP or bank details through links in WhatsApp or SMS. You can check a suspicious message with the Scam Message Checker.