Budget 2027 lays foundation for business growth

PETALING JAYA: Budget 2027 places greater emphasis on improving incomes, supporting businesses and preparing Malaysians for a changing economy, said WORQ co-founder and CEO Stephanie Ping.
Tax measures for eligible MSMEs and the expansion of individual tax relief to cover AI subscriptions can help entrepreneurs manage costs while exploring new tools, she added.
“These measures build on efforts to strengthen Malaysia’s startup ecosystem. Khazanah Nasional’s Jelawang capital invests in venture capital funds, while KWAP’s Dana Perintis channels capital into venture capital funds and high-potential startups. Cradle Fund’s grants and ecosystem programmes help early-stage technology businesses develop, commercialise and scale their innovations. Together, these initiatives can broaden access to funding at different stages of a startup’s growth,” said Ping.
For businesses, the planned minimum wage increase from RM1,700 to RM2,000 in June 2027 will affect workforce costs and employment planning. The temporary exemption for eligible MSMEs with annual sales below RM50 million recognises that smaller businesses may need more time to adjust.
“This breathing room can help them review costs and business models before higher wages take effect. More opportunities for graduates to gain relevant experience through internships and AI training could also help employers find talent with the skills they increasingly need,” said Ping, adding that the challenge now is to turn policy announcements into practical improvements as employers navigate rising costs, changing skills requirements and the growing role of technology.
“As Malaysia becomes more visible to digital nomads, businesses can benefit from creating environments where local teams, entrepreneurs and international remote workers can connect.
“Flexible workspaces are one practical option. They give businesses access to professional facilities without requiring them to commit to more space than they need, allowing overheads to change as teams and operations evolve.”
For startups and smaller companies, Ping said, this can free up resources for hiring, training and business development.
The expansion of individual tax relief to include AI subscriptions is a useful step towards making these tools more accessible.
However, Ping said, access alone will not translate into productivity. Employees need to understand how to apply AI at work, while businesses must identify where it can improve workflows, reduce repetitive tasks and support better decisions.
This is especially important for smaller companies that may not have dedicated technology teams or large budgets for experimentation. Practical training and opportunities to test AI applications can help employees build confidence and help businesses assess its value.
She said WORQ has seen first-hand the value of bringing learning opportunities closer to businesses.
“Over the past few years, we have partnered with AITraining2U to host practical AI workshops at our event spaces and collaborated with Excelerate Asia on a free webinar about using AI at work.
“Our ongoing partnership with digital consultancy AMBTY also gives smaller teams opportunities to develop skills in systems, tools and automation. The next step is to connect this learning with day-to-day work, so employees can apply new skills and businesses can turn experimentation into meaningful improvements,” she added.
Looking ahead to 2027, Ping said businesses could be encouraged to consider arrangements beyond the standard hybrid pattern of three days in the office and two at home.
“Practical incentives and clear guidance can help employers adopt models suited to their operations while maintaining collaboration, productivity and workplace culture,” she added.
Overall, she said Budget 2027 lays a foundation for the business community to grow.
“Tax measures for MSMEs, financing support and individual tax relief can help businesses and workers navigate global uncertainty. But the next step is to translate policy support and the growing use of AI into tangible productivity gains,” she added.