Guan Eng makes 11th-hour appeal for Anwar to ensure ‘last budget’ counts

DEWAN RAKYAT, KUALA LUMPUR, 9 OCTOBER 2026 —

Anwar’s ‘Last Budget’ Under Scrutiny as Guan Eng Pushes for Urgent Tax Relief Ahead of 2027 Election Deadline

With Parliament’s five-year term expiring in December 2027 and polls due by February 2028, Guan Eng warned that any measures in Budget 2028 would arrive too late to influence voters, framing the upcoming budget as a make-or-break moment for the ruling coalition’s electoral prospects.

The Bagan MP’s intervention comes as Anwar prepares to table Budget 2027 in the Dewan Rakyat tomorrow, following his own pledge in a Facebook post yesterday that the budget would prioritise equitable development and direct relief for Malaysians struggling with inflation. Guan Eng, however, dismissed economic growth alone as insufficient, arguing that without tangible tax cuts, the government risks losing public trust just months before the election.

His proposals—including a RM3,000 increase in personal income tax relief, higher education and healthcare allowances, and the removal of an 8% service tax on private old folks’ homes—have already been submitted to Anwar but now carry the weight of an eleventh-hour push.

Guan Eng’s urgency stems from the tight timeline between budget implementation and the election. While Anwar will present Budget 2028, he will have no time to enact its measures before voters cast their ballots, Guan Eng told Malaysiakini in an interview today. “Anwar will be delivering Budget 2028, but he won’t have enough time for the people to feel the benefit because it will be elections by then,” he said.

“So this is the final budget. Either you make it, or you don’t.” The current Parliament, which first convened on December 19, 2022, is set to dissolve in December 2027, triggering a 60-day countdown to polling day—unless Anwar calls an early election.

The former finance minister’s demands reflect broader public frustration over stagnant tax relief, particularly for middle- and lower-income earners. Personal income tax relief has remained frozen at RM9,000 since 2010, a period spanning 17 years, despite inflation eroding its value. Guan Eng proposed raising it to RM12,000, citing the need to align with rising living costs.

“Time has come for it to be increased by RM3,000 based on inflation over the last 17 years,” he argued. His call to scrap the 8% service tax on private elderly care homes, introduced in September 2026, also targets a vulnerable demographic facing soaring healthcare expenses.

“So much has been debated through the PAC, Federal Treasury, the Ministry of Health, and Bank Negara on the issue of constant increases in medical insurance and exorbitant private hospital charges,” Guan Eng noted, adding that the Democratic Action Party (DAP) had long advocated for affordable medical premiums.

Beyond tax relief, Guan Eng’s appeal extends to broader economic and environmental reforms, echoing concerns raised by civil society groups. In a Facebook comment yesterday, an unnamed contributor—later flagged by Malaysiakini’s editorial team—proposed three key measures to curb overconsumption while generating revenue for public transport subsidies and fuel efficiency incentives. The suggestions included: 1. A RM2 tax on e-commerce parcel deliveries for business-to-consumer sales exceeding RM1 million annually, exempting food and business-to-business transactions.

The tax, paid by sellers, aims to discourage impulsive online spending and reduce plastic waste from packaging. 2. A 20-sen tax relief per litre of unused Budi Madani fuel quota, claimable in annual tax returns. This would incentivise reduced car usage and public transport adoption, while saving the government from subsidising unused fuel. 3.

Free public transport for Malaysians under 24 and over 60, targeting young workers with low starting salaries and seniors struggling with mobility costs. The proposal frames it as a dual solution to air pollution and fossil fuel dependency.

Guan Eng’s push comes as Anwar faces pressure from multiple fronts. While the government has focused on business tax incentives in recent discussions, opposition parties and advocacy groups have intensified calls for direct consumer relief. The Pakatan Harapan (PH) coalition, which includes the DAP, has repeatedly criticised the administration for prioritising corporate interests over household budgets.

“Not that DAP can’t bring such issues to Anwar, but he won’t listen if it affects the MM [Malay-Muslim] base which he dares not spook,” the Facebook comment noted, suggesting that only a senior figure outside government could force the issue onto the agenda.

Anwar’s response remains unconfirmed, but his October 8 Facebook post signalled a shift toward social welfare. “Economic growth alone is not enough while people continue to face cost-of-living pressures,” he wrote, pledging that Budget 2027 would “ensure development benefits are felt more equitably.” Whether this translates into Guan Eng’s proposed tax hikes—or the broader environmental and mobility reforms—will hinge on Anwar’s willingness to act before the election clock runs out.

With Parliament’s term ending in less than a year, the coming days will determine whether Budget 2027 delivers the relief Guan Eng insists is non-negotiable—or risks being remembered as a missed opportunity.

Related: Lim Guan Eng