BUDGET Madani 2027 strikes a steadier balance between fiscal discipline and economic relief, said former Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Highlighting a record RM510 bil allocation alongside a target to trim the fiscal deficit down to 3.3 per cent, Zafrul argues that the budget moves beyond sheer numbers to deliver direct, meaningful improvements to everyday lives.
“Budget Madani 2027 walks that tightrope with remarkable steadiness. The total budget leaps to RM510 bil, up from RM470 bil, yet the fiscal deficit is targeted at 3.3 per cent, down from 5.5 per cent in 2022,” he said.
“That is not luck. It is the fruit of courage, of hard choices made when it would have been far easier to spend now and let future generations pay,” he said in a commentary published by Malay Mail.
Zafrul says at its core, the policy focuses heavily on lifting the financial floor for working families.
STR and SARA cash aid will double to RM16 bil, benefiting up to nine mil low-income recipients alongside a broad RM200 payout for 13 mil adults, including the M40.
Simultaneously, pay packets receive a boost through a minimum wage increase to RM2,000 in June 2027, the introduction of a new RM2,500 wage floor for graduates and semi-skilled workers, and a target living wage of RM3,400 across government-linked companies.
“I wholeheartedly welcome the minimum wage rise from RM1,700 to RM2,000 a month from June 2027,” Zafrul added.
More than four mil workers will feel the difference, while smaller firms are given room to adjust.
“I have repeatedly advocated for a higher minimum wage, while calling out highly profitable companies to share their earnings more equitably with their workers,” he said.
He also commented on middle-class households who stand to gain from expanded income tax relief which is raised to RM12,000 from RM9,000.
He added that the tax rate cut could save five mil taxpayers up to RM1,600 annually.
Paired with institutionalised support for gig workers and stamp duty exemptions for first-time homebuyers, the commentary paints Budget 2027 as a targeted effort to convert national economic discipline into tangible breathing room for ordinary Malaysians.—Oct 11, 2026
Main image: Tengku Zafrul (Facebook)
