Capital Compass
Funding readiness
In partnership with
Budget 2027
What Budget 2027 means for your business
Malaysia's Budget 2027 was tabled on 9 October 2026. Here is what matters if you run a small or medium business — and one tax change that already took effect.
Important: Budget 2027 has been tabled but not yet passed. Tax measures remain proposals until the Finance Bill is approved.
Already in effect
- e-Invoice exemption raised to RM3 million. From 1 September 2026, businesses below RM3m annual turnover may be exempt. No application needed to stop issuing. (Previously RM1 million.)
- Overnight Policy Rate held at 2.75% — financing costs stable for now.
Lower tax — proposed, YA2027
- 14% on your first RM150,000 of chargeable income (down from 15%)
- 16% on RM150,001 – RM600,000 (down from 17%)
- For companies with paid-up capital up to RM2.5m and sales up to RM50m
Borrowing and guarantees
- RM57 billion in SME financing and guarantees, up from RM50 billion
- SJPP guarantee limit raised to RM50 million
- RM1 billion export financing for MSMEs entering new markets
- RM6.6 billion microfinancing — AIM, TEKUN, BSN
Grants
- RM30 million through MDEC for 4,000 MSMEs adopting AI and automation
- Halal certification — up to RM5,000 first-time; RM25,000 for selected sectors
- Sejahtera MADANI — RM200 million for equipment and training, 40,000 recipients
Raising money from investors
- MyCIF co-invests alongside your investors on licensed crowdfunding platforms — RM1 for every RM4 you raise (up to RM1m), or RM1 for every RM2 in food security, environmental and social impact, and silver economy
- Smart Manufacturing Scheme — RM2 of government money for every RM1 you raise, for robotics, AI and digital investment. Live now, runs to 2030
- Tax exemption for your investors on equity crowdfunding extended to 2030 — makes you easier to back
One cost to plan for
- Minimum wage rises to RM2,000 a month from June 2027. MSMEs with annual sales below RM50 million are exempt — the length of that exemption has not been announced. Worth modelling now, not in May.
Which of these can your business actually use?
Free 2-minute readiness check. 12 plain questions, no documents, no login. Your score and what to fix, straight away.
Budget 2027 figures are as announced on 9 October 2026 and subject to change until the Finance Bill is passed; verify against official sources before acting.