By Takeshi Murai, Country Retail Director, IKEA Malaysia
The increased allocation of RM16 billion for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), up from RM15 billion in 2026, is a significant step towards supporting households. Together with the increase in individual tax relief from RM9,000 to RM12,000 and reductions in selected personal income tax rates, these measures are expected to ease financial pressures, with the tax changes providing up to RM1,600 in additional disposable income to approximately five million taxpayers.
We also recognise the importance of the increase in the minimum wage from RM1,700 to RM2,000, effective June 2027, in supporting better livelihoods for Malaysian workers. At the same time, sustainable wage growth requires businesses to balance their responsibility towards employees with rising operating costs and the need to maintain affordable prices for consumers. The Government’s exemption for eligible MSMEs also acknowledges the different operating realities businesses face. For IKEA, finding more efficient ways of working while continuing to care for our people remains important in delivering lasting value to our customers.
For IKEA, affordability has always been central to how we do business. We recognise that many Malaysian households are becoming more careful about 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 finding practical, affordable solutions that help them make the most of their homes.
Additionally we welcome measures that improve 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 towards helping more Malaysians own a home. Beyond homeownership, we believe everyone should have the opportunity to create a comfortable and functional living environment that supports their everyday needs.
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 more 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 Malaysians.
