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Budget 2026: Govt’ announces benefits for civil servants in Budget 2026

PETALING JAYA: The Malaysian government has unveiled a series of initiatives aimed at improving the welfare and financial stability of civil servants, demonstrating continued support for the hardworking individuals who serve the nation.

In tabling Budget 2026 today, Prime Minister Datuk Seri Anwar Ibrahim said RM2.2 billion has been allocated to improve housing facilities for civil servants across various sectors, including doctors, nurses, military personnel, police officers, teachers, firemen, and prison staff.

“This includes the construction and maintenance of staff quarters. A new military housing project at the Kuantan Airbase, Pahang, will be built to accommodate nearly 800 military personnel, with an investment of RM500 million,“ said Anwar.

He said that the government will also acquire housing for Eastern Sabah Security Command (Esscom) personnel in Lahad Datu, Sabah, as well as for immigration officers in Lipis, Pahang, and Kuala Lumpur.

In a move to assist contract staff who face difficulties in securing home loans, Anwar said that the Public Sector Housing Corporation will now guarantee loans of up to 120% for first-time homebuyers, with a total value of RM1 billion.

“Bank Simpanan Nasional will provide RM500 million to finance first-time home loans for contract civil servants, including teachers from Tabika and Taska Kemas,“ Anwar added.

The government has also extended the Skim Pembiayaan Perumahan Muda (Youth Housing Financing Scheme) under LPPSA (Public Sector Home Financing Authority) until December 31, 2026, benefiting approximately 48,000 young civil servants under 30 years of age.

In recognition of the sacrifices made by military personnel, particularly those holding the Pingat Jasa Malaysia, the government has approved a special payment of RM500 for nearly 120,000 recipients, with an allocation of RM60 million.

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