KUALA LUMPUR: The MADANI Government’s Budget 2026 prioritises balancing national development with citizen wellbeing through improved quality of life and strengthened economic resilience.
Prime Minister Datuk Seri Anwar Ibrahim tabled the RM419.2 billion budget themed “Fourth MADANI Budget: A Budget for the People” in the Dewan Rakyat today.
He stated the budget reflects the government’s commitment to comprehensive national rejuvenation and reform after nearly three years of administration.
“Approaching three years under the MADANI administration, we have carried out bold and thorough reforms that are now beginning to yield meaningful results,“ Anwar said.
Budget 2026 serves as the fourth budget under Anwar’s government and the first under the 13th Malaysia Plan, setting the foundation for the country’s five-year development agenda.
The MADANI Economy framework aims to provide essential services, create jobs, generate income, and ease the cost of living for Malaysians.
Anwar outlined nine key commitments anchored on three pillars of the MADANI Economy framework, beginning with good governance as the first commitment.
He emphasised building fiscal efficiency, stopping leakages, and strengthening national institutions to raise economic potential and improve living standards.
“Through this approach, we have successfully implemented anti-corruption measures, curbed smuggling, and dismantled cartels that have long hindered economic progress,“ he stated.
Enforcement agencies have recovered nearly RM15.5 billion through asset seizures and penalties under the MADANI administration.
The second commitment focuses on prioritising people’s needs through targeted subsidies and various MADANI initiatives for the public.
“Subsidies are a privilege for Malaysians, not for foreigners, and not for large corporations,“ Anwar stressed.
Targeted subsidies for diesel and RON95 petrol have saved approximately RM15.5 billion annually according to the Prime Minister.
“Every ringgit saved means more funds for social welfare, more allocations to ease the cost of living, and greater investment in quality infrastructure for the rakyat,“ he remarked.
The third commitment involves leading a high-value economy through strategic investments in semiconductors, energy transition, and digital technology.
The government will strengthen TVET education to meet workforce demands in high-growth industries while capitalising on Visit Malaysia 2026’s projected RM329 billion tourism revenue.
Budget 2026’s fourth commitment advances Malaysian innovation and propels “Made by Malaysia” products into export markets.
“Malaysia cannot remain a mere consumer; we must create and produce products and services, and lead in technology and digitalisation,“ Anwar stated.
The fifth commitment strengthens national resilience through agile policies addressing geopolitical tensions, energy transitions, and food security threats.
RM21.7 billion is allocated to the Ministry of Defence and RM21.2 billion to the Home Ministry to enhance national readiness and safety.
The sixth commitment focuses on narrowing regional and socio-economic gaps through infrastructure upgrades and empowerment programmes.
It includes expanded opportunities for women and youth while strengthening support for vulnerable communities including Orang Asli and Persons with Disabilities.
The seventh commitment ensures people’s livelihood remains the government’s highest priority with all savings redirected to ease living costs.
“For the first time in our nation’s history, the hardcore poverty rate has fallen from 0.2% to nearly zero, just 0.09% or approximately 7,000 households nationwide,“ Anwar revealed.
All nine million Sumbangan Tunai Rahmah recipients will receive RM100 monthly SARA assistance totaling RM1,200 annually under expanded cash assistance.
One million STR recipients registered under eKasih will receive RM200 monthly SARA assistance totaling RM2,400 per year.
An additional RM100 in SARA credits will be disbursed to 22 million Malaysians aged 18 and above in mid-February 2026 for Ramadan and Chinese New Year preparations.
These expanded assistance packages totaling RM15 billion are funded through savings from targeted subsidies.
The eighth commitment empowers public services through upgraded healthcare infrastructure, education facilities, and public transport.
The ninth commitment advances Islamic values and education with RM2.6 billion allocated to strengthen Islamic educational institutions.
The government will offer full PTPTN loan waivers to 5,800 students from low-income families studying in public universities beginning next year. – Bernama
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