GEORGE TOWN: For a senior manager in George Town, a household income that places his family firmly in the T20 category no longer tells the whole story.
Adam, 50, who works for a private company and asked to be identified only by his first name, is the sole breadwinner for his wife and four children.
Two of his children are studying at university and college, while the younger two are still in secondary school. At the same time, he supports his elderly parents.
There are the usual commitments – a housing loan, car loans, insurance and takaful – on top of education, household and family expenses.
“On paper, my income looks high, but under the current cost of living, my disposable income is fast declining,” he told Twentytwo13.
“I don’t expect cash aid. I just want the Government to recognise that being T20 doesn’t mean everything is affordable.”
Many M40 households, meanwhile, fall outside the eligibility thresholds for targeted cash and essential-goods assistance, leaving them to absorb much of the increase in household costs without the same level of direct support available to lower-income households.
A. Shahril, 38, a private-sector employee from Alor Setar, is one of them. His wife also works for a private company, and the household falls within the M40 income group.
“As a young family with two small children, what we hope for most from Budget 2027 is a little more financial breathing room.
“Right now, it is not about wanting to live a luxurious life, but simply making sure our children have everything they need. Groceries, milk, nappies, childcare, clothing, education and healthcare costs are all becoming increasingly burdensome. At the same time, we still have to meet our housing and car commitments, pay our bills and set aside savings for our children’s future.
“So, I hope the government will pay greater attention to middle-income families like those in the M40 group. Sometimes we do not qualify for much assistance, but at the same time, we still feel the impact of rising living costs.
“If there are specific forms of assistance or incentives for families with young children, particularly for childcare and education, that would be a great help.
“Most importantly, I hope Budget 2027 will not merely help us get by, but create opportunities for household incomes to grow.
“We want to work and be self-reliant. We simply need a little support to build a more stable life and provide a better future for our children.”
For Adam, however, the concern goes beyond immediate relief.
Adam said he had registered with the Pangkalan Data Utama (PADU) after the Government indicated that household circumstances could eventually be assessed using a more comprehensive measure than gross income alone.
“I wonder what happened to the initiative,” he said.
His question comes at a significant moment for Malaysia’s social assistance framework.
In January, Deputy Economy Minister Datuk Mohd Shahar Abdullah said the Government was considering Net Disposable Income (NDI) as a new benchmark for assistance to reduce exclusion risks and ensure a fairer distribution of aid.
NDI would take into account disposable income after deductions such as Employees Provident Fund (EPF) contributions, taxes, zakat and Social Security Organisation (Socso) contributions, while also considering basic expenditure for a decent standard of living.
The Government said the approach would require further research and comprehensive household data before implementation.
The issue is particularly relevant because the Department of Statistics Malaysia’s latest household disposable income data shows substantial differences between states and urban and rural households.
For 2024, the national threshold for the top 20 per cent based on monthly household disposable income was RM10,450, compared with RM11,260 in urban areas. In Penang, the threshold was RM10,470, while Selangor and Kuala Lumpur recorded substantially higher thresholds.
For households such as Adam’s and Shahril’s, the question is therefore not simply whether income is high, but how much remains after meeting family commitments in a relatively high-cost environment.
But as Prime Minister Datuk Seri Anwar Ibrahim prepares to table Budget 2027 in Parliament today, the wishlist extends beyond household finances.
The fifth Madani Budget comes against a backdrop of global uncertainty, an energy crisis, geopolitical tensions and continued pressure on the cost of living.
The Finance Ministry’s Pre-Budget Statement said Budget 2027 must balance protecting households from energy and living-cost pressures with laying the foundations for a higher-value economy.
Its stated priorities include productivity and innovation-led growth, energy transition, food security, digitalisation and artificial intelligence, as well as the development of highly skilled talent.
The Government has also been seeking input directly from industry, NGOs and the public.
Finance Minister II Datuk Seri Amir Hamzah Azizan said in September that the Finance Ministry was conducting a nationwide budget tour to gather views from stakeholders, with Penang among the states receiving particular attention because of its importance to the electrical and electronics, semiconductor and medical-device sectors.
Consumers: Raise wages, but don’t let prices follow
For the consumer movement, the central concern is purchasing power.
Kedah Consumer Association (Cake) president Mohamad Yusrizal Yusoff said the government should focus on reviving domestic economic activity by strengthening consumers’ purchasing power.
“Today, we are seeing the economy affected and consumers’ purchasing power declining,” he told Twentytwo13.
He said the fundamental problem was the mismatch between rising living costs and household incomes.
There has also been intense speculation over a possible increase in the minimum wage, with RM2,000 among the figures discussed publicly.
On Sept 30, the Cabinet agreed that micro, small and medium enterprises would be exempted from any new minimum-wage increase for the time being, while alternative measures such as wage subsidies under the Progressive Wage Policy would be considered.
Anwar has also said the government will announce measures to ensure graduates receive jobs and wages commensurate with their qualifications.
Yusrizal said any increase in wages must therefore be accompanied by measures to prevent another round of price increases.
“We hope that when the minimum wage is increased, the prices of goods remain stable,” he said.
He warned that if higher wages simply translated into higher prices, the impact would eventually be felt most severely by lower-income households.
For the longer term, he wants more incentives for agriculture, SMEs and domestic production.
The objective, he said, should be to encourage more entrepreneurs to produce essential goods so greater competition can lead to better quality and more reasonable prices.
He also called for food security to be strengthened by reducing Malaysia’s dependence on imported basic necessities.
“Over-reliance on imports means our prices are exposed to exchange-rate movements and global supply-chain disruptions,” he said.
For the consumer movement, Budget 2027 should therefore be about creating a stronger domestic supply base rather than relying solely on short-term assistance.
Manufacturers: Make it easier to invest, automate and pay better
For manufacturers, the wishlist is less about immediate relief and more about creating the conditions for businesses to invest.
Malaysian Manufacturers Federation Penang chapter chairman Datuk Seri Lee Teong Li said manufacturers were operating in an increasingly uncertain external environment, citing geopolitical tensions, the Middle East crisis, global trade disruptions and volatility in energy and logistics costs.
He wants Budget 2027 to strengthen Malaysia’s industrial competitiveness and resilience, particularly by helping small- and medium-enterprises (SMEs) invest in technology.
“We hope Budget 2027 will focus on strengthening Malaysia’s industrial competitiveness and resilience,” he told Twentytwo13.
Lee said the Government should expand grants, tax incentives and affordable financing for automation, smart manufacturing, artificial intelligence and digital transformation.
He also wants SMEs to have better access to financing and technology adoption programmes, allowing them to retain more earnings for reinvestment in machinery, research and development and workforce development.
Another priority is stronger domestic supply chains, with incentives for local sourcing, supplier development and diversification of critical components and materials.
Energy costs are another concern.
Lee called for targeted and predictable support for energy efficiency, renewable energy and green investments, while ensuring Malaysia’s transition towards a low-carbon economy does not undermine industrial competitiveness.
He also wants greater investment in industry-led TVET, apprenticeships, STEM education and upskilling.
The foreign-worker levy, he said, should also be channelled towards skills development and automation to help Malaysian industries progressively move towards a higher-skilled workforce.
For Penang, infrastructure is equally important, with efficient roads, ports, airports and public transport needed to maintain the state’s position as a major E&E and semiconductor hub.
His message is straightforward: Budget 2027 should not be limited to short-term relief.
“It should create the conditions for Malaysian manufacturers to invest, innovate and move up the value chain,” he said.
Hoteliers: Don’t let higher costs undermine Visit Malaysia
The hospitality industry is making a similarly broad appeal, seeking both cost relief and structural reforms.
The Malaysian Association of Hotels (MAH) has proposed a series of measures covering short-term accommodation, taxation, licensing, energy costs, digitalisation and sustainability.
Among its key demands is a clearer and stronger regulatory framework for short-term residential accommodation (STRA), which hotels argue is necessary to create a level playing field between licensed hotels and unregulated accommodation providers.
The issue has been repeatedly raised by the hotel industry, with licensed operators arguing that they bear costs associated with fire and safety regulations, taxation, employment requirements and local authority compliance that unlicensed operators may avoid.
MAH is also seeking a review of the current Sales and Service Tax framework and its impact on the hospitality sector, including consideration of appropriate exemptions or reduced rates.
In response to Twentytwo13, MAH secretariat said it wants a more streamlined music-licensing system, including consideration of a single centralised collection body to reduce duplication and administrative uncertainty.
The association has also called for a review of recurring fees imposed by the Fire and Rescue Department, particularly charges associated with fire safety inspections, certification and compliance.
Electricity tariffs are another major concern, with MAH seeking industry-appropriate relief to help contain operating costs.
At the same time, the industry wants the Government to look beyond cost reduction.
MAH is proposing expanded grants for hotel digitalisation, including automation, cybersecurity and smart-hotel technologies, as well as greater support for green and ESG initiatives covering energy efficiency, renewable energy, water conservation and waste management.
It is also seeking tax incentives, capital allowances or other relief for the renovation and modernisation of ageing hotels.
The calls come as Malaysia continues to push its Visit Malaysia 2026-2027 campaign.
Tourism Malaysia has sought increased funding in Budget 2027 to help achieve its target of 47 million tourist arrivals, while industry players have called for stronger promotional support and collaboration.
Penang, meanwhile, has sought federal support for higher-value tourism, including an international air-connectivity fund and matching grants to attract direct flights from markets such as Japan, South Korea, Australia and the Middle East.
The tourism industry is therefore entering Budget 2027 with an apparent balancing act of its own: attract more visitors while ensuring rising business costs do not erode the competitiveness of Malaysian operators.
A budget caught between relief and reform
Taken together, the wishes from households, consumers, manufacturers and hoteliers reveal a common thread.
They are not simply asking for more money.
Adam wants the Government to recognise the difference between headline household income and actual financial capacity.
Consumers want wages to rise without triggering another increase in the price of necessities.
Manufacturers want incentives that allow them to invest, automate, develop local talent and move into higher-value production.
Hoteliers want a more predictable regulatory and cost environment while investing in digitalisation, sustainability and the visitor economy.
These demands broadly mirror the government’s own stated ambition for Budget 2027: to raise the ceiling of economic growth, raise the floor of living standards and drive governance reform.
The government has said the economy has remained resilient despite global uncertainty, with Malaysia recording 5.7 per cent growth in the first half of 2026, while full-year growth is projected at around five per cent. At the same time, fiscal pressures and rising energy costs remain constraints on how much room there is for broad-based assistance.
That makes today’s Budget more than a question of how much is allocated – but where, to whom and with what intended outcome.
For the families, consumers and businesses waiting to hear Anwar’s speech, the measure of success will ultimately be much simpler.
Whether the numbers announced in Parliament translate into more money left in household wallets, more competitive Malaysian businesses, better-paying jobs and a cost environment that allows families and enterprises to plan beyond the next month.
