Malaysia

Budget 2027: Anwar appears mindful of GE16, says analyst

Azmi, of Akademi Nusantara, said the budget could be Anwar’s last before the 16th general election, and the measures announced today suggested the government was conscious of the need to keep voters on its side.

Updated 1 hour ago · Published on 11 Oct 2026 7:59AM

Budget 2027: Anwar appears mindful of GE16, says analyst
Another measure he highlighted was the RM160 million package for gig workers - October 11, 2026

by Alfian Z.M. Tahir

THE prospect of an early general election appears to have figured in Budget 2027, with Prime Minister Datuk Seri Anwar Ibrahim announcing a range of financial incentives aimed at civil servants, pensioners, lower-income households and gig workers, political analyst Dr Azmi Hassan said.

Azmi, of Akademi Nusantara, said the budget could be Anwar’s last before the 16th general election, and the measures announced today suggested the government was conscious of the need to keep voters on its side.

He cited the RM1,500 special financial assistance for civil servants and RM750 for government pensioners as examples of benefits likely to generate goodwill ahead of the polls.

“The government has also increased the allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion for 2027, up from RM15 billion this year,” he said.

Azmi further said the government had also responded to complaints over the lack of direct assistance for lower-income Malaysians, while the increase in individual income tax relief from RM9,000 to RM12,000 would provide some relief to taxpayers.

Another measure he highlighted was the RM160 million package for gig workers, including e-hailing drivers and p-hailing delivery workers.

“The package is expected to raise e-hailing drivers’ median net monthly income by up to RM227, while p-hailing delivery workers could see an increase of up to RM100,” he added.

Azmi noted that the government had moved to assist while discussions on a broader framework for gig workers, including minimum income rates, were still underway.

The framework is expected to be finalised in early 2027.

He said the measures reflected an effort to ensure people had more money in their hands, adding that the continuation of STR and SARA would also be welcomed by recipients.

Azmi described the initiatives as a way for the government to build public support ahead of GE16, but said the incentives did not go overboard.

The timing gives the budget added political significance. Parliament’s current term is due to expire in December 2027, with a general election required within 60 days of its dissolution.

This means GE16 must be held by February 2028 if Parliament serves its full term, although an earlier poll remains possible.

There has been growing speculation about an early election amid strains within the governing coalition.

Budget 2027 also includes provisions for election preparations, although the government has not announced a date for the next polls.

Anwar’s fifth MADANI budget combines direct assistance with broader economic measures, including an increase in the minimum wage from RM1,700 to RM2,000 a month from June 2027.

For Azmi, the political appeal lies in the immediate benefits reaching different groups of voters.

Whether those measures translate into electoral support will depend on how far Malaysians feel the assistance eases the pressure on their household finances. – October 11, 2026

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