2027 Budget aims to boost Malaysian corporate growth through tech and sustainability

In Kuala Lumpur, Khairi Shahrin Arief Baki of CGS International Securities Malaysia explained that the 2027 Budget is designed to help Malaysian corporations navigate rising geopolitical and climate risks by investing in technology, workforce development and sustainability. Key measures include extending accelerated capital allowances for domestic plant, machinery and ICT assets until 2030, and offering full tax allowances for qualifying green technology projects.

The budget also backs MSMEs in adopting AI and automation, while proposing a minimum wage increase to RM2,000 from June 2027, with exemptions for firms earning under RM50 million annually. Baki warned that without productivity gains, higher wages alone will not lift households, and vice-versa. He added that early decarbonisation and efficiency will position firms better under Malaysia’s emerging carbon-pricing regime. The MY Value Up Programme, launched by the Securities Commission and Bursa Malaysia, is expected to guide listed companies in setting clear growth strategies and disciplined capital allocation starting in 2027.