Tax experts see business support in Budget 2027 measures

Budget 2027’s tax provisions could help businesses manage cost pressures and encourage domestic investment, tax experts said, pointing to savings for smaller enterprises and wider eligibility for green technology incentives.

Chartered Tax Institute of Malaysia (CTIM) president Alan Chung said tax savings would help micro, small and medium enterprises (MSMEs) remain financially resilient amid inflation and higher energy prices. Extending the relief period would also reduce pressure on cash flow associated with capital investment, he said.

Chung said the enhanced Green Technology Tax Incentive adds ocean thermal energy conversion as a qualifying activity. Eligible assets would also include locally produced electric vehicle infrastructure, systems for waste recycling and technologies for water conservation. He said the measures seek to lower investment costs, promote technology adoption and generate skilled jobs.

Ernst & Young Tax Consultants Sdn Bhd Malaysia tax managing partner Farah Rosley said the budget combines relief for households and smaller businesses with an emphasis on productivity, workforce development and technology adoption. She said implementation, policy certainty and collaboration between government and businesses would be essential to achieving lasting benefits.

Deloitte Malaysia Tax Leader Sim Kwang Gek said the government had opted for targeted support rather than new taxes or tax reforms. Deloitte Malaysia Country Managing Partner Yee Wing Peng said efforts to bring the fiscal deficit down to 3.3 per cent of gross domestic product (GDP), alongside continued development investment, showed a commitment to balancing growth and fiscal sustainability.