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BUSINESS • 13/10/2026 11:28 AM

Budget 2027: Tax Relief To Boost Consumer Spending, Says Rakuten Trade

KUALA LUMPUR, Oct 13 (Bernama) -- Rakuten Trade Sdn Bhd sees the consumer sector as the main beneficiary of Budget 2027, in view of the individual income tax relief that could strengthen spending power among middle-income Malaysians. 

Head of Research Kenny Yee said that beyond the extended cash handouts and wider tax reliefs, the recalibration of personal income tax could unleash potent spending power among middle-income households. 

"Having waited more than 10 years for these adjustments, we believe they also provide an overdue 'feel-good' factor for the market," he said in a statement today. 

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The government estimates that the combined tax measures could provide five million taxpayers with up to RM1,600 in additional disposable income.

The budget increases the individual income tax relief limit from RM9,000 to RM12,000, alongside a one-percentage-point reduction in resident individual income tax rates for chargeable income bands of RM70,001-RM100,000 and RM100,001-RM150,000. 

The minimum wage will also rise from RM1,700 to RM2,000 starting June 2027, with an exemption for micro, small and medium enterprises (MSMEs) with annual sales of below RM50 million.

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Beyond consumer spending, the digital equity broker said it views 2027 as a "year of delivery" for the construction sector.

"While no new mega infrastructure projects were announced, the RM83 billion development expenditure (DE) allocation could support ongoing project activity," it said, adding that Sabah and Sarawak received a combined RM34.9 billion.

On the property sector, Rakuten Trade said incentives announced during the budget could support mass-market demand and benefit developers with relevant exposure.

Among the incentives is the stamp duty exemption for eligible first-time homebuyers, with full exemption for homes priced up to RM500,000, alongside a 50 per cent exemption on the remaining amount for homes priced between RM500,001 and RM750,000. 

The measures apply to eligible sale and purchase agreements executed between Jan 1, 2027 and Dec 31, 2030.

-- BERNAMA 

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