Budget 2027 outlines eight initiatives for senior citizens, including a higher elderly assistance allocation, an increase in the minimum pension to RM1,350 a month and a lower service tax on elderly care services.
The allocation for elderly assistance will rise to RM1.3 billion, benefiting nearly 200,000 recipients, while the minimum pension will increase from RM1,000 to RM1,350 a month for nearly 59,000 government retirees, Malaysian Armed Forces veterans and derivative pension recipients.
Effective Jan 1, 2027, the service tax on elderly care services will be reduced from eight per cent to six per cent, with a full exemption for care fees of up to RM96,000 annually.
Under the i-Emas retirement savings scheme, Employees Provident Fund (EPF) members aged 55 and 60 may opt for monthly withdrawals, while their remaining savings will continue to earn dividends.
The budget also allocates more than RM40 million to train 8,000 people in elderly care and provides for the establishment of two National Integrated Care Centres of Excellence (NICE) in Penang and Sarawak to support training, research and care services.
Other measures include the drafting of a Senior Citizens Bill to address neglect and strengthen the elderly care system, as well as expanding tax relief for parental care to cover all expenses incurred for parents and grandparents, beyond medical expenses alone.
Prime Minister Datuk Seri Anwar Ibrahim announced the initiatives when tabling Budget 2027 in the Dewan Rakyat on Saturday.
