Budget 2027: Childcare group proposes doubling tax relief for daycare fees to RM6,000

The Malaysia Children Daycare Association has proposed doubling tax relief for registered childcare fees from RM3,000 to RM6,000. ― TODAY pic

First Published: Thursday, 01 Oct 2026 12:35 PM MYT

KUANTAN, Oct 1 — The Malaysia Children Daycare Association has proposed that the government increase individual income tax relief for fees paid to registered childcare centres from RM3,000 to RM6,000 annually under Budget 2027.

Its founder and chairman, Ng Chun Piew, also proposed raising the eligibility age limit for the tax relief from 12 to 18 years.

He said the proposal aims to ease the financial burden on parents amid rising living costs, particularly middle-income (M40) families who continue to need after-school care and supervision for their children after they enter secondary school.

“Expanding the relevant tax relief would further ease the financial burden on families with genuine childcare and daycare needs, while also encouraging parents to choose registered and regulated children daycare centres,” he said in a statement today.

He said the proposed increase could also help promote the formalisation, professionalisation and standardisation of the childcare and daycare industry.

“We hope the Government will consider this proposal when formulating Budget 2027, so that more families with childcare and daycare needs can receive appropriate support,” he said. — Bernama