2027 Budget raises minimum wage and tax relief to bolster Malaysia's property market

In the 2027 Budget, Malaysia will raise the minimum wage from RM1,700 to RM2,000 and increase individual tax relief to RM12,000, alongside a one-percentage-point cut for selected income brackets. Analysts view these steps as timely support for consumer sentiment amid rising bond yields and potential interest-rate hikes. A four-year extension of stamp-duty exemptions for first-time buyers, now running to the end of 2030, will cover full relief on homes up to RM500,000 and partial relief up to RM750,000.

The measures are projected to boost disposable income for middle-income earners and create a “feel-good” factor for the property sector. Companies such as Matrix Concepts Holdings Bhd, Mah Sing Group Bhd, LBS Bina Bhd and larger developers like EcoWorld, IOI Properties Bhd and Sunway Bhd are expected to gain from the policy changes.