Budget 2027 clears policy stage; committee debate runs 2–26 November

1 November 2026 · News · Finance, tax & corporate

The Dewan Rakyat passed the Supply Bill 2027 at the policy stage by voice vote on 29 October, and the committee stage runs from 2 to 26 November. The tax proposals that matter to companies, including lower MSME rates from YA2027 and a RM2,000 minimum wage from June 2027, still need the Finance Bill to become law, so treat them as proposals when planning with your accountant or tax agent.

Where the budget stands

The Edge reported that the Dewan Rakyat approved the Supply Bill 2027 at the policy stage on Thursday, 29 October 2026, after a voice vote following the Finance Minister II's winding-up speech. The bill now moves to the committee stage, where each ministry's allocation is debated in detail. That stage is scheduled to run from 2 to 26 November 2026, followed by the third reading, the Dewan Negara and royal assent.

The budget, tabled on 9 October, sets federal expenditure at RM459.8 billion against revenue of RM380.8 billion and targets a fiscal deficit of 3.3% of GDP for 2027, down from 3.6% for 2026.

Measures businesses are watching

The budget speech and its appendices list several proposals with direct cost effects for companies. Tax changes are normally legislated through a separate Finance Bill, so the details can still be refined before they take effect.

MSME income tax: 14% on the first RM150,000 of chargeable income (from 15%) and 16% on RM150,001 to RM600,000 (from 17%), from the year of assessment 2027.
Small value assets: the per-asset limit for full capital allowance rises from RM2,000 to RM3,000; for companies other than MSMEs the annual cap rises from RM20,000 to RM30,000, from YA2027.
Minimum wage: up from RM1,700 to RM2,000 a month from June 2027, with different treatment for MSMEs with annual sales below RM50 million.
Salary deductions: from YA2028, companies other than MSMEs would only be able to deduct salaries paid through financial institutions or approved cashless instruments.
Training: HRD Corp is to offer 3 million training places with RM3 billion in funding.

What buyers of professional services should do now

Finance teams preparing 2027 budgets can ask their tax agent to model the proposed MSME rates and the new capital allowance limits, while flagging that the figures depend on the final Finance Act. Employers that still pay some staff in cash may want their payroll provider to plan a move to bank transfers before YA2028. Our separate analysis pieces look at the minimum wage and MSME tax changes in more detail.

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Sources

Dewan Rakyat passes Budget 2027 at policy stage — The Edge Malaysia
Budget Speech 2027 (with tax measures appendices) — Ministry of Finance Malaysia
Speech: The Fifth MADANI Budget 2027 — Ministry of Finance Malaysia

Editorial summary written by Best Malaysia Services. Not legal, tax or financial advice; check the original sources.