GENERAL

Changes For Next Year, What Awaits Malaysians In 2026

31/12/2025 04:02 PM

By Yasmin Ahmad Zukiman

KUALA LUMPUR, Dec 31 (Bernama) -- The year 2026 is not just about new resolutions, but also requires that the people be more aware and prepared to face various changes, from the cost of living, digital security to law enforcement that will have a direct impact on the lives of millions of people.

Next year also marks the beginning of the 13th Malaysia Plan (13MP), a five-year plan to determine the direction of the economy, society and well-being of the people.

Here are some important things throughout 2026 that need to be noted:

School Session Back in January: After almost three years of the academic calendar having to start in March due to the COVID-19 pandemic, the school session for national schools and government-aided schools will return to normal in January 2026.

For Group A states (Kedah, Kelantan and Terengganu) the academic calendar will start from Jan 11 to Dec 31, while Group B states (Johor, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Penang, Sabah, Sarawak, Selangor, Kuala Lumpur, Labuan and Putrajaya) will start from Jan 12 to Dec 31.

Early School Assistance (BAP): A total of 5.2 million government school students will receive BAP of RM150 involving an allocation of RM800 million, with disbursements starting in 2026 through schools and teachers to parents.

MARA Junior Science College (MRSM) and Full Boarding School (SBP) admissions: The admission system will be streamlined starting January intake next year, allowing applicants to apply to both but only one offer will be given to avoid duplication.

Visit Malaysia 2026 (VM2026): The tourism sector is expected to receive a major boost through the organisation of VM2026 themed “Malaysia Truly Asia” and “Surreal Experiences”, which will open up opportunities for tourists to explore the country’s diverse culture, heritage and natural beauty.

Budget 2026 allocates more than RM700 million to boost tourism promotion, including RM500 million for the VM2026 Campaign and RM60 million for the Tourism and Cultural Promotion, Marketing and Event Organisation Incentive Fund, which is expected to provide economic spillover to small traders, local entrepreneurs and rural communities.

Income Tax Exemption of RM1,000 for Domestic Tourism: Individual taxpayers are eligible to claim tax relief of up to RM1,000 for domestic tourism expenses subject to the specified conditions, in an effort to encourage domestic spending and support the local tourism industry ahead of VM2026.

E-invoice Implementation Exemption: The government has also increased the threshold for exemption from the implementation of mandatory e-invoices from RM500,000 to RM1 million, starting Jan 1, 2026, as a measure to ease the burden on micro, small and medium enterprises (MSMEs) with income below that level from the urgent need for a digital invoicing system.

Stamp Duty Self-Assessment System (STSDS): The Inland Revenue Board (IRB) will implement the STSDS in phases starting Jan 1, 2026, with the first phase involving certain instruments, followed by property transfer documents in 2027 and the remaining categories of other documents in 2028.

New individual income tax relief: Among them, the scope of lifestyle tax relief worth a maximum of RM2,500 per year has been expanded to cover expenses for purchasing environmentally friendly technology devices such as food waste composting machines, to encourage a sustainable lifestyle.

To support family well-being, the tax relief limit for early childhood education fees of up to RM3,000 per year now also includes payments to registered day care centres or transit centres, in addition to nurseries and kindergartens for children up to 6 years old.

In addition, the government has increased the individual income tax relief limit for expenses related to children with disabilities (OKU) under 18 years of age from RM6,000 to RM10,000, effective for the Year of Assessment 2026.

SSPA Phase 2 Salary Adjustment: Civil servants who opt for the Civil Service Remuneration System (SSPA) will enjoy the Phase 2 salary adjustment scheduled for Jan 22.

The new salary adjustment, which will take effect on Jan 1, will see the Implementing Group and the Management and Professional (M&P) Group receive another seven per cent, while the Top Management Group (TMG) will receive a three per cent adjustment.

The Phase 2 salary adjustment is a continuation of the salary increase under the SSPA announced in 2024 at a rate of 15 per cent for M&P and seven per cent for TMG.

In phase one of the salary adjustment, the M&P group received an eight per cent increase, while TMG received a four per cent increase, which was paid in December 2024.

The move is expected to have a positive impact on civil servants' monthly income as well as household expenses.

Judges' Salaries Increased: The last time judges' salaries were increased was in 2015 and they do not receive annual salary increases like other service schemes, in addition to not being allowed to hold positions or be involved in any business.

In this regard, in line with efforts to strengthen the authority, integrity and independence of the judiciary, which is now on a better track than before, the government has agreed to increase judges' salaries by up to 30 per cent effective from January 1 2026.

People's Welfare: The government will once again channel the Basic Rahmah Contribution (SARA) of RM100 to 22 million people aged 18 and above in mid-February, involving a total allocation of RM2 billion to assist in preparations for Ramadan and the Chinese New Year celebrations.

Digital Security: The country's digital space will also see major changes in 2026 when all Internet messaging and social media service providers with eight million or more users will be required to register as Application Service Provider Class [ASP(C)] License holders starting Jan 1 through the implementation of the Deeming Provisions of Section 46A of the Communications and Multimedia Act 1998.

The regulatory measure aims to ensure that large-scale platforms operate within the legal framework in an orderly and effective manner, in addition to assuming clear responsibilities for the safety of users, especially children and families.

Along with this, the Online Safety Act (OnSA) will come into effect starting Jan 1, emphasizing consumer protection, controlling cyber fraud, exploitation and impersonation, including threats involving the misuse of artificial intelligence and deepfake technology.

Media Innovation Fund: for Phase 1 will be opened from Jan 1 to 14 2026, to support the transformation of the country's media industry to remain relevant, competitive and resilient in the digital era, following the announcement by Prime Minister Datuk Seri Anwar Ibrahim in conjunction with the National Journalists' Day (HAWANA) 2025 regarding the allocation of funds totaling RM30 million.

Law Enforcement: The Community Service Order Act will come into effect on Jan 1 as an alternative to punishment, emphasising rehabilitation and social responsibility. Individuals who litter and spit in public places around the capital will be subject to compound action of up to RM2,000 in addition to community service exceeding 12 hours for six months.

Meanwhile, for road enforcement, the traffic summons payment system will be replaced with the concept of the less you delay, the less you pay, offering a reduction of up to 50 per cent for early payment.

Youth and Politics: The youth age limit has been lowered to 30 years from Jan 1 following the amendment of the Youth Societies and Youth Development (Amendment) Act 2019, emphasising the involvement of young people in youth organisations and leadership.

The Melaka State Election is also expected to be a focus in 2026 which will provide an indication of the people's support ahead of the next general election as the Melaka State Legislative Assembly will automatically dissolve in December 2026.

 

Sports Agenda: The organisation of several sports agendas will be held next year including the Malaysia Games (SUKMA) XXII Selangor 2026 which is scheduled to take place from August 15 to 24, involving 474 events from 37 types of sports.

Malaysia has also been given the right to organise two major aquatic tournaments in 2026, namely the Asian Water Polo Championship (Under 18 Years) and the 48th SEA Age Group Aquatic Championship.

Malaysian Aquatics (MAS) in a previous statement announced that the Asian Water Polo Championship (Under 18) scheduled to be held from March 9 to 15 at the National Aquatics Centre, Bukit Jalil will mark the country hosting the event for the first time.

13MP: The year 2026 marks the beginning of 13MP (2026-2030) based on three main principles, namely the formation of a sovereign and dignified nation, a social system based on MADANI citizens and the transition to a country based on artificial intelligence.

The five-year development plan aims to form an inclusive and progressive society, in addition to making Malaysia a regional digital technology leader through the production of innovation and global-class products and services Made by Malaysia.

All these developments make 2026 not just a new year, but a year that demands the people to be more sensitive, ready to face change and take advantage of what is and will be happening around them.

-- BERNAMA


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