Belanjawan 2027: What It Means for SMEs Going Digital

Prime Minister Anwar Ibrahim tabled Budget 2027 in the Dewan Rakyat on Friday, 9 October 2026. The headline number is RM510 billion including investment, with federal spending of RM459.8 billion: RM376.8 billion for operations and RM83 billion for development.

Most coverage went to tax bands and cash aid. If you run a small or medium business, a handful of smaller lines matter more, because they decide what digital projects cost you in 2027.

The AI money for small firms

The budget gives MDEC an RM30 million fund to help 4,000 micro, small and medium enterprises adopt AI and automate their operations. The speech did not include terms or application dates, so watch MDEC’s announcements before you plan around it.

Alongside that, the Digital Ministry targets 200,000 AI-skilled Malaysians through AI Malaysia Bhd as part of the AI Nation 2030 goal. The budget also funds training and certification for 5,000 AI professionals and 100,000 more free AI app subscriptions for young people.

Co-investment for robotics, AI and digital

According to Funding Societies’ summary, the government will put in RM2 for every RM1 that SMEs and mid-tier companies raise on equity crowdfunding and P2P platforms for robotics, AI and digital projects, until 2030. If you planned to raise money for automation anyway, that ratio changes the maths.

Tax measures worth a call to your accountant

• MSME income tax: 14% on the first RM150,000 of chargeable income, a one-point cut, then 16% up to RM600,000. The rates are proposed from YA 2027 for qualifying companies with paid-up capital up to RM2.5 million and sales up to RM50 million.
• ICT hardware: reports say the accelerated capital allowance for ICT hardware runs until 31 December 2030. Laptops, servers and network gear bought for the business may qualify.
• AI subscriptions: individuals can claim paid AI software subscriptions under lifestyle relief from YA 2027.

Wages go up in June 2027

The minimum wage rises from RM1,700 to RM2,000 from June 2027. Some summaries say MSMEs with annual sales below RM50 million are exempt, but the exemption test has not been defined yet. Plan for the higher figure until the rules are published.

Higher wages are the strongest argument for automating repetitive work. Every hour your team spends re-typing orders into three systems now costs more.

Financing

Business loan facilities and financing guarantees rise to RM57 billion in 2027, up from RM50 billion, and microfinancing grows to RM6.6 billion. Each scheme still has its own approval rules.

What we suggest you do this quarter

1. List the work that eats staff hours. Data entry, stock counts, chasing payments, checking CCTV. Pick the one that costs the most.
2. Scope one AI or automation pilot for it now, so you can apply as soon as the MDEC fund opens instead of starting from zero.
3. Time hardware purchases with your accountant if the ICT capital allowance applies to you.
4. Model the June 2027 wage change and see which tasks software can take over before then.
5. Train your team. Tools only pay back when people use them. Our AI tools at work class covers this in half a day.

Budget measures stay proposals until Parliament passes the Finance Bill and agencies publish the rules, so check the official Ministry of Finance documents before you commit money. If you want help turning one of these into a plan, see how we run SME digital shift projects.