Kuala Lumpur – BERSATU Puchong Division Associate Wing chief Dato’ Gan Yong Hwa said that, following discussions with numerous leaders and representatives of community organisations and chambers of commerce, he hoped Budget 2027 would not merely present large allocation figures but genuinely address the cost of living, the operating pressures faced by small and medium enterprises (SMEs), difficulties in obtaining financing, tax reform and the development of education across all streams. It should be a people-friendly, business-friendly and equitable budget that places emphasis on effective implementation.
He said the Ministry of Finance had opened its channels for feedback on Budget 2027, and the government must therefore listen seriously to the voices of grassroots communities and industry players. The government should not hold numerous engagement sessions, take publicity photographs and collect proposals, only to table a budget that is disconnected from the actual problems faced by the people and businesses.
“What the business sector needs most now is not more slogans, but assistance that can be obtained promptly, is easy to apply for and genuinely addresses cash-flow problems. The people are also not interested merely in how many billions of ringgit the government announces. They want to know whether their cost-of-living burden has been reduced, whether their income has increased and whether assistance has reached those who truly need it.”
Gan said the cost of living remained one of the main concerns of community organisations and the general public. Besides continuing to assist lower-income groups, the government must also recognise the pressures faced by the “squeezed middle”. These households are often excluded from assistance because their income is slightly above the eligibility threshold, even though they must still bear housing and vehicle loans, education and healthcare expenses, insurance premiums and other household costs.
He said the government should review the existing eligibility thresholds for assistance by taking into account household size, the cost of living in the area concerned and disposable income. A family’s need for assistance should not be determined solely by its gross income.
On businesses, he said business organisations had consistently reported increases in the costs of raw materials, rent, wages, utilities, logistics and financing. At the same time, businesses must comply with the Sales and Service Tax (SST), e-Invoicing, licensing, certification and various regulatory requirements, placing severe pressure on the cash flow of SMEs.
“The government cannot introduce multiple cost-increasing policies within a short period and then simply demand that businesses transform and improve their productivity. It is not that businesses are unwilling to transform; many are already struggling to maintain their daily cash flow.”
He urged the government to refrain from introducing new piecemeal taxes in Budget 2027. It should also conduct a comprehensive SME cost-impact assessment covering the minimum wage, e-Invoicing, SST, utility tariffs and foreign-worker policies. Businesses must be given a reasonable transition period to avoid the cumulative impact of several policies being implemented simultaneously.
Gan said the government must also undertake a serious review of the country’s taxation system. Several business organisations have proposed gradually reducing the corporate income tax rate and reintroducing the Goods and Services Tax (GST) at a lower rate to replace the more complex SST, which can create cascading costs along the supply chain.
Gan also urged the government to assist local businesses in dealing with unequal competition from cross-border e-commerce platforms and foreign companies. Cross-border goods must be subject to the same rules as local businesses in taxation, product safety, certification and consumer protection.
At the same time, the government should provide assistance for digitalisation, automation, product certification, shared warehousing, logistics, brand enhancement and export promotion. This would enable local businesses to build competitive advantages through quality, speed, after-sales support and locally tailored services.
On education, he expressed hope that the government would implement a fair, transparent and institutionalised funding mechanism for all education streams, while publicly disclosing the specific allocations received by each category of school. The government should also establish a permanent mechanism for the construction and relocation of schools across all streams based on demographic changes and the needs of local communities.
Gan stressed that the government must maintain fiscal discipline, control administrative expenditure and national debt, and publicly disclose the purpose of every major allocation, its intended beneficiaries and its implementation outcomes.