21/10/2026
Budget 2027 is here. What does it mean for your business?
Malaysia’s fifth MADANI Budget, tabled on 9 October 2026, includes several measures business owners should plan for now.
✅ Lower MSME tax: 14% on the first RM150,000 and 16% on RM150,001 to RM600,000 (proposed, from YA 2027), saving qualifying SMEs up to RM6,000 a year
✅ Better cash flow: Small-value asset threshold for capital allowances raised to RM3,000 per asset from YA2027. For non-MSMEs, the annual cap rises from RM20,000 to RM30,000
✅ More financing: RM57 billion in loans and guarantees, including an extra RM5 billion for BNM’s SME Stabilisation Relief Facility (available until 30 June 2027 or until fully used), plus RM6.6 billion in microfinancing
✅ Minimum wage: Rises from RM1,700 to RM2,000 from June 2027. MSMEs with annual sales below RM50 million are exempted from the new rate to allow time to adjust. The current RM1,700 floor still applies to them.
✅ Go green, save more: Green Investment Tax Allowance of up to 100% on qualifying green technology, extended to 31 December 2030
Don’t miss this: From YA 2028, non-MSME companies can only claim tax deductions on salaries paid through financial institutions or cashless channels.
Your next steps:
Review your 2027 tax estimates, plan asset purchases early, check your minimum wage position, and move payroll to bank or cashless channels ahead of YA 2028.
These are Budget proposals and remain subject to the Finance Bill and implementation guidelines.
Message us to find out how these changes affect your business.
