IKEA Malaysia welcomes the MADANI Government’s Budget 2027, recognising its focus on easing cost-of-living pressures and strengthening the nation’s economic resilience. As Malaysians navigate rising living costs, we believe that measures safeguarding household purchasing power are crucial for helping families manage daily needs and plan for the future with confidence.
Easing Financial Pressures for Malaysian Households
We commend the increased allocation of RM16 billion for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), up from RM15 billion in 2026. Combined with the increase in individual tax relief from RM9,000 to RM12,000 and reductions in selected personal income tax rates, these initiatives are expected to provide up to RM1,600 in additional disposable income for approximately five million taxpayers. These steps will significantly ease financial pressures on the rakyat.
Balancing Wage Growth and Business Sustainability
IKEA Malaysia also recognises the importance of the minimum wage increase from RM1,700 to RM2,000, effective June 2027, in supporting better livelihoods for workers. At the same time, sustainable wage growth requires businesses to balance employee responsibilities with rising operating costs and the need to maintain affordable prices for consumers. We appreciate the Government’s exemption for eligible MSMEs, which acknowledges the diverse operating realities businesses face. For IKEA, finding more efficient ways of working while caring for our people remains essential to delivering lasting value to our customers.
Commitment to Affordability and Homeownership
Affordability has always been central to IKEA’s business. We recognise that Malaysian households are becoming more careful with their spending, reinforcing the importance of offering good value without compromising on quality, functionality, or sustainability. Our focus remains on understanding how people live and providing practical, affordable solutions for their homes.
Additionally, we welcome measures improving access to homeownership, particularly for first-time buyers. The RM20 billion housing financing guarantee under Syarikat Jaminan Kredit Perumahan (SJKP), alongside proposed stamp-duty exemptions for eligible first-home purchases, are important steps toward helping more Malaysians own a home. Beyond homeownership, we believe everyone should have the opportunity to create a comfortable and functional living environment.
Accelerating Green Technology and Sustainability
Equally encouraging is the Government’s continued commitment to accelerating green technology adoption and Malaysia’s energy transition. The extension of green technology tax incentives until 2030, including Investment Tax Allowances of up to 100% for eligible green technology investments, provides greater encouragement for businesses to adopt sustainable practices. The introduction of NUR MADANI rebates of up to RM200 for energy-efficient air conditioners and refrigerators also demonstrates how sustainability can be made more accessible to households.
As IKEA Malaysia enters its next chapter of growth, we remain committed to making life at home more affordable, inspiring, and accessible for the many Malaysians. We believe that a stronger, more resilient economy should ultimately translate into better opportunities, greater financial confidence, and an improved quality of life for all.
The above commentary is by Takeshi Murai, Country Retail Director, IKEA Malaysia
