Lim Guan Eng urges Anwar to deliver tangible economic relief, raise tax threshold to RM12,000 in likely ‘final’ pre-election Budget

KUALA LUMPUR, Oct 8 — Bagan Member of Parliament Lim Guan Eng has urged Prime Minister Datuk Seri Anwar Ibrahim to use Budget 2027 to deliver tangible economic relief, calling it the administration’s final realistic opportunity to win over voters before the next general election.

Lim proposed raising the personal income tax relief threshold to RM12,000 from the current RM9,000 to offset cumulative inflation, noting that the relief limit has remained unchanged for 17 years.

Speaking to media in Parliament ahead of the official Budget 2027 presentation, the former finance minister stressed that while a national Budget will be tabled in late 2027, its measures will not take effect quickly enough to influence the electorate before the government’s term expires.

Lim said that while he believed Anwar could still table the Budget before Parliament is dissolved, any attempt to win over voters would not be as effective as “it would be too late”.

“All our proposals are necessary. If not, I am worried this would be the last chance for the Madani government to make the Budget’s benefit tangible to the people,” he said.

“Yes, I believe he could still table another Budget, but I feel the impact will not be the same since it would be too late.”

Anwar acknowledged the economic strain on households in a social media post recently, stating that macroeconomic growth alone is insufficient and pledging that the upcoming fiscal plan will directly address cost-of-living pressures and distribute economic gains more equitably.

Malaysia’s current Parliament first convened on December 19, 2022, and its five-year term automatically expires in December 2027, requiring a general election to be held within 60 days unless Parliament is dissolved earlier.

Lim said there is typically a Cabinet meeting held before the tabling of the Budget, noting that in the past, last-minute additions have been made at such meetings.

“We suggest raising the personal tax relief from RM9,000 to RM12,000. The threshold for this relief has not changed for 17 years and if we account for inflation, RM9,000 in 2010 is now RM12,000.

In addition to personal income tax adjustments, Lim called for a RM1,000 increase in tax relief allocations for both education and healthcare expenses to assist middle-class families.

The DAP leader also advocated for targeted support for eldercare, appealing to the government to abolish the 8 per cent service tax recently imposed on private old-age homes to reduce the financial burden on caregivers.