BUDGET 2026 HIGHLIGHTS

KUALA LUMPUR, Oct 10 (Bernama) -- The following are the highlights of Budget 2026, tabled in the Dewan Rakyat today by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister.

Themed Belanjawan MADANI Keempat: Belanjawan Rakyat (Fourth MADANI Budget: A Budget for the People), it marks the first budget under the 13th Malaysia Plan (13MP) 2026-2030.

• Over RM700 million has been allocated to enhance the capabilities of enforcement agencies, including the MACC, PDRM, KPDN, JKDM and MyCC, through training and asset procurement.
• JKDM will introduce digital tax stamps to curb forgery and leakages at the country’s entry points through the Centralised Screening Complex CCTV.
• Cash donors to corruption prevention programmes are eligible for income tax deductions.
• The Special Task Force on Agency Reform (STAR) agenda has saved compliance costs of up to RM1.1 billion, helping Malaysia climb 11 spots in the Global Competitiveness Index.
• The STAR team receives RM25 million for comprehensive digitalisation efforts to accelerate infrastructure development and innovation.
• MyDigital ID aims to reach 15 million users by the end of 2025, with expansion into key sectors such as finance, telecommunications, e-commerce and health.
• RM76.6 million has been allocated to improve the quality of UTC infrastructure.
• RM31.5 million has been allocated to maintain and replace damaged assets at embassies.
• RM220 million has been allocated to strengthen the role of the Parliamentary Institution, and RM5 million to enhance the functions of the Special Select Committees in both the Dewan Negara and Dewan Rakyat.
• RM15 million has been allocated to expand the reach of the All-Party Parliamentary Group of Malaysia (APPGM).
• The separation of the roles of the Attorney General and the Public Prosecutor is under discussion with all stakeholders.
• The government will amend the Consumer Protection Act to include elements of the Lemon Law
• The BUDI95 database involving 16.5 million eligible citizens is being updated to include additional quotas for 23,000 registered boat owners and over 52,000 active e-hailing drivers.
• The overall targeted subsidy enables the government to save about RM15.5 billion annually.
• RM1 billion has been allocated to intensify MADANI’s efforts for the people.
• The Sejati MADANI programme will be expanded through the involvement of youth to boost community income.
• The Kampung Angkat MADANI target has been raised to 500 villages, and Sekolah Angkat MADANI to 1,500 schools, with participation from the private sector.
• The Solar MADANI programme will be expanded to villages nationwide.
• Companies and individuals with business income who contribute to the Kampung Angkat MADANI, Sekolah Angkat MADANI and Sejahtera MADANI programmes are eligible for income tax deductions.
• RM110 million has been allocated for the MADANI Mobile Service initiative to ensure rural and remote communities have direct access to government services.
• Development allocations for Sabah and Sarawak have been increased to RM6.9 billion and RM6 billion respectively.
• The Federal Government has allocated RM765 million for the Southern Link Transmission Line project to address power supply disruptions in Sabah.
• RM1.67 billion has been allocated for the Sabah Pan Borneo project.
• The Sarawak-Sabah Link Road (SSLR) Phase 1 is expected to be completed in November 2026, while Phase 2 is under construction and scheduled for completion in mid-2029.
• Highway projects in Sabah and Sarawak involve an estimated total cost of RM48 billion.
• RM2 billion has been allocated to develop the 3,190-kilometre MADANI Submarine Cable Connection (SALAM).
• RM20 million has been allocated to increase trading sites and business spaces for small traders under the Tamu Desa initiative in Sabah and Sarawak.
• The allocation for TVET has been increased to RM7.9 billion.
• RM45 million has been allocated to the National TVET Council to provide digital technology and AI training to 10,000 tahfiz and pondok students through the IPT@Komuniti programme.
• An allocation of RM1.3 billion has been provided to TVET institutions under the Ministry of Education to train 79,000 students.
• RM3 billion has been allocated to HRD Corp to provide three million training opportunities, particularly in the high-tech, digital and energy transition sectors.
• GiatMARA will provide training to more than 13,000 individuals, including gig workers.
• Community colleges will provide Lifelong Learning Programmes for vulnerable groups, including persons with disabilities, the elderly, single mothers and the Orang Asli.
• More than RM700 million will be set aside to strengthen the tourism sector ahead of Visit Malaysia Year 2026.
• Tax deductions of up to RM500,000 will be provided to tourism project operators undertaking renovations and refurbishments of business premises.
• Special individual income tax relief of up to RM1,000 will be provided for expenses on entrance fees to local tourist attractions and cultural programmes.
• Taxi and private hire vehicle owners will enjoy a 100 per cent exemption on excise duty and sales tax for the purchase of new PROTON and PERODUA models.
• HRD Corp will provide RM10 million to cover training costs and allowances for taxi drivers to enhance operational efficiency and safety.
• RM5 million in matching grants will be provided to encourage the corporate sector, philanthropists and heritage experts to rejuvenate the National Museum.
• DBKL will utilise RM500 million from internal funds to upgrade facilities for hawkers and public housing, while RM200 million will be set aside for the redevelopment of dilapidated hawker centres, markets and food courts.
• RM300 million has been allocated to maintain buildings, wiring systems and road facilities in public housing projects (PPR).
• RM60 million will be set aside to build stalls and repair public markets across all local authorities (PBT).
• RM50 million will be allocated to Majlis Amanah Rakyat (MARA) to upgrade 363 MARA business premises nationwide, benefiting 7,300 entrepreneurs.
• RM15 million will be allocated to cultivate interest in science, technology and creativity among youth.
• More than RM2.5 billion in micro-loans will be provided, including through BSN and TEKUN.
• RM50 million will be allocated to the Malaysia Co-operative Societies Commission to provide financing for cooperative enterprises nationwide.
• The Jeniang Water Transfer Project will begin next year, with an allocation of RM1.28 billion.
• Foliar fertiliser will be provided to 6,400 padi farmers, involving an allocation of RM20 million.
• RM300 million has been set aside to support grain corn cultivation, aquaculture, livestock and padi farming activities in Sabah and Sarawak.

• Agrobank will provide RM1.1 billion to support entrepreneurs in expanding their businesses and promoting automation and mechanisation in agricultural projects.
• RM2.62 billion will be allocated for various subsidies and assistance to padi farmers, as well as incentives to boost padi production.
• Each padi farmer is expected to receive assistance of about RM4,300 per hectare, compared with RM3,790 per hectare previously per season.
• RM160 million has been set aside the Elaun Sara Hidup for fishermen, the subsidised diesel price of RM1.65 per litre will be retained, and RM20 million will be channelled for vessel upgrades.
• RM55 million will be provided to support local fruit farmers.
• Allocations of RM21.7 billion for the Ministry of Defence and RM21.2 billion for the Ministry of Home Affairs (KDN) to enhance national preparedness.
• RM6 billion will be allocated to maintain and procure defence assets, while RM1 billion will be provided to maintain and purchase assets for PDRM and other uniformed bodies under KDN.
• More than RM1.5 billion will be set aside to build and upgrade facilities for uniformed bodies.
• The Tun Sharifah Rodziah static offshore forward operating base, which will expire in June 2026, will be replaced by a new multi-purpose command platform.
• RM45 million has been allocated to the Malaysian Border Control and Protection Agency.

• The Communications Ministry will implement the Safe Internet Campaign to raise cyber awareness among school students.
• A Cyber Crime Bill will be drafted to address cybercrime more comprehensively.
• RM12 million has been allocated to the National Scam Response Centre (NFRC) to combat online fraud and cyber threats, while RM20 million will be set aside to modernise digital forensic systems and enhance expertise.
• RM220 million has been earmarked for the redevelopment of the damaged and dilapidated Gaya IPG Campus in Sabah.
• RM39 million has been allocated for the second phase of the flood mitigation project and the reconstruction of a school block affected by floods in Inanam, Sabah.
• RM460 million has been set aside to NADMA to strengthen disaster preparedness.
• MCMC will allocate RM210 million to develop an Early Warning System (EWS).
• RM2.2 billion will be provided to continue 43 projects under the Flood Mitigation Plan (RTB).
• Over RM260 million is allocated for nationwide slope maintenance and repair, with RM55 million designated for drain and ditch cleaning and upgrades in all PBTs.
• RM300 million has been allocated to treat, maintain, and clean rivers, while RM3.3 billion will be provided for basic rural infrastructure projects.

• Pengurusan Aset Air Berhad will implement investments of up to RM13 billion over five years to ensure a clean water supply nationwide.
• RM400 million has been allocated for the construction of underground dams, tube wells, and reservoir structures in Padang Matsirat, Langkawi, while over 820km of obsolete pipes will be replaced.
• RM770 million has been allocated to implement the remaining Point of Presence (PoP) Phase 2 near industrial areas and selected schools in rural and remote locations.
• Broadband coverage will be expanded to 2,700 new locations under the JENDELA 2 project, with an allocation of RM780 million.
• RM6 billion has been set aside for MARA, Yayasan Peneraju, and UiTM.
• The individual income tax relief of RM3,000 for nursery or kindergarten fees for children up to six years old has been extended to include registered day care and transit centres.
• Starting next year, the age limit for youth will be capped at 30 years.
• The government will continue to fund the cost of obtaining a Class B2 motorcycle licence.
• RM412 million has been set aside to empower the Orang Asli community
• Nearly RM1.4 billion in assistance will be channelled for persons with disabilities (PwD), including bedridden, unemployable PwDs, and allowances for PwD employees.

• STR Phase 4 payments worth RM2 billion will be brought forward and disbursed from Oct 18, in conjunction with Deepavali.
• A 50 per cent toll discount will be offered for two days in conjunction with Deepavali.
• All 9 million STR recipients will receive SARA of up to RM100 per month, or RM1,200 per year, while 1 million STR recipients under eKasih will receive up to RM200 per month, or RM2,400 per year.
• RM100 SARA aid will be provided to 22 million Malaysians aged 18 and above, to be disbursed in mid-February.
• The Social Welfare Department will continue providing aid to over 560,000 recipients with an allocation of RM3.1 billion, while RM1 billion has been set aside to address the cost of living issues.
• RM250 million has been allocated to cover the cost of distributing essential goods in Sabah and Sarawak.
• Gig, e-hailing, and p-hailing workers will receive an EPF matching contribution incentive of up to RM600 per year, with a lifetime limit of RM6,000, under the i-Saraan Plus scheme.
• The i-Saraan scheme will continue for informal and self-employed workers, offering a matching contribution of up to RM500 per year.
• The eligibility age for the i-Suri programme will be increased to 60 years, with the allocation for senior citizen welfare raised to RM1.26 billion, benefiting 180,000 senior citizens.
• RM46.5 billion has been allocated to the Health Ministry.
• The role of health clinics will be strengthened to provide specialist services to the community, with an allocation of RM30 million.

•  A total of 4,500 contract doctors will be offered permanent posts.
• The On-Call Duty Allowance (ETAP), which has not been revised since 2011, will be increased by around 40 per cent effective 1 Oct.
• Excise duty on alcoholic beverage products will be increased by 10 per cent, effective Nov 1, 2025.
• The Ministry of Education (MOE) will receive RM66.2 billion, with nearly RM2 billion allocated to upgrade over 520 dilapidated schools, particularly in Sabah and Sarawak.
• RM100 million has been allocated to build additional classrooms in over 100 high-density schools, with another RM100 million set aside to construct 350 new preschool classes.
• All 5.2 million government school students will receive RM150 in Early Schooling Aid, with an allocation of RM800 million.
• The Ministry of Higher Education (MOHE) will receive RM18.6 billion, with over RM400 million allocated to maintain infrastructure and replace obsolete equipment in public universities, polytechnics, and community colleges.
• Free PTPTN education to 5,800 students from low-income families.
• RM209 million has been set aside for the Rural Air Services (RAS) subsidy to benefit residents in rural and remote areas of Sabah and Sarawak.
• RM2.5 billion has been allocated for federal road maintenance, including pothole repairs and installation of street lights in high-risk areas.
• Matching grants of up to RM4,000 will be provided to encourage vehicle owners to dispose of old vehicles and purchase new national vehicle models.
• Full stamp duty exemption will be granted on transfer instruments and loan agreements for the purchase of first homes worth up to RM500,000.
• RM50 million has been allocated to renovate and maintain registered non-Muslim houses of worship nationwide.
• RM2.6 billion has been allocated for Islamic affairs.
• The EPF withdrawal limit for the purpose of performing the haj has been increased to RM10,000.
• RM55 million has been allocated for national unity and identity programmes.
• RM110 million will be set aside as incentives to encourage local and international film producers to create high-quality productions in Malaysia.
• RM10 million will be allocated as incentives to promote concerts by local and international artistes, in conjunction with Visit Malaysia Year 2026.
• RM20 million has been allocated to support the digital creative ecosystem, particularly local animation and digital game creators.
• Nearly RM2.2 billion has been allocated to build, maintain, and repair government quarters, while the maximum eligibility limit for LPPSA funding has been increased to RM1 million.
• The Cost of Living Assistance (BSH) for 4,000 KEMAS contract retirees will be increased from RM300 to RM500 per month.
• RM500 special payment for nearly 120,000 recipients of the Pingat Jasa Malaysia, with an allocation of RM60 million.
• The Performance-Based Incentive Scheme will be expanded to include management and professional groups in the federal public service.
• Judges’ salaries will be increased by up to 30 per cent from Jan 1, 2026, while all Cabinet members will continue to take a 20 per cent salary cut.
• Special financial assistance of RM500 for civil servants Grade 56 and below, including contract appointments, and RM250 for government retirees, will be distributed in early March 2026.
• A special contribution of RM500 will be provided to 70,000 KAFA teachers, takmir teachers, imam, bilal, tok siak, noja, and marbut, with an allocation of RM35 million.

--BERNAMA