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● Anwar concludes his budget speech by voicing the government’s solidarity with Palestinians and hails the role of the US, Egypt, and Qatar in negotiating for peace between Hamas and Israel.
● Prime Minister Anwar Ibrahim says 249 international schools have been lacking with teaching Bahasa Malaysia with the government set to carry out serious monitoring to ensure that Malaysian students at international schools, in particular, will be taught the national language.
● The government to raise the salaries of judges by up to 30 percent, effective Jan 1 next year as the last salary adjustment was in 2015, as judges do not receive annual increments like other schemes. Anwar also announces a special financial assistance of RM500 for all civil servants in Grade 56 and below, including contract appointments.
The special financial assistance will also be extended to all government retirees, including both pensioned and non-pensioned veterans, amounting to RM250. This assistance will be disbursed in early March 2026 in conjunction with the Aidilfitri celebration. Read more
● The government allocates RM110 million as incentives for local and international filmmakers to make films in Malaysia. This includes RM10 million specifically earmarked for “nationalist” films. The government allocates RM55 million for unity and national identity programmes, such as a unity week with another RM46 million is also being allocated to build three new “unity” activity centres in Terengganu, Perak, and Sarawak.
● The government allocates RM200 million to enhance stage bus services; - RM209 million to subsidise air travel for rural communities in Sabah and Sarawak.
▹ Free MyRailLife Passes will be provided to the OKU community, school students and children under 6-years-old
▹ Another RM5.6 billion allocation through Marris allocated to states for the maintenance of state roads nationwide with a further RM2.5 billion allocated to maintain federal roads
● Government to extend the full stamp duty exemption on transfer and loan agreements for the purchase of a first home for another two years, until Dec 21, 2027. The initiative involves first-time homebuyers purchasing their first home priced up to RM500,000.
● All disabled school students will get a RM150 per month allowance while general school aid for poor students is also expanded to cover students up to Form 5. Read more
● The Education Ministry will receive RM66.2 billion under Budget 2026, compared to RM64.2 billion this year, with RM2 billion allocated to upgrade more than 520 dilapidated schools, particularly in Sabah and Sarawak, in addition to repairing and maintaining all types of schools. A total of 38 new schools will be built to meet the needs of local communities. In addition, the Ladang Jeram Tamil school in Pahang and the Aik Hua Chinese school in Perak will also be reconstructed. Read more
● The excise duties on alcohol will go up 10 percent from November 1, while, cigarettes will cost two sen more per stick. Anwar also announced that cigars, cheroots, and cigarillos will go up by RM40 per kg, while heated tobacco products will cost RM20 more per kg of tobacco. Proceeds from the hikes will help fund health initiatives such as treatment for diabetes and heart disease. Read more
● To encourage insurance or takaful protection, Anwar announced individual income tax relief of up to RM3,000 currently given for life insurance premiums or life takaful contributions for oneself and spouse will be extended to include children. Additionally, full stamp duty exemption on small-value insurance policies or takaful certificates purchased by individuals and MSMEs will be extended for three years until 2028. Full stamp duty exemption on insurance policies and takaful certificates under the Perlindungan Tenang product will also be extended for three years until 2028.
● From 2026 onwards, the government will provide free PTPTN Education to 5,800 children from poor families who are studying at IPTA, with an allocation of RM120 million per year.
▹ The government has also agreed to exempt PTPTN repayments for all students who obtain a First Class Honours Bachelor’s Degree at IPTA from low and middle income families. This will benefit around 6,000 borrowers with an allocation of RM90 million per year.
▹ The government will impose restrictions on overseas travel for borrowers who can afford to pay and work abroad, but default on repayments.
The government has also agreed to increase the projected 1,500 seats for Bachelor’s Degrees in 10 fields of study at five research universities, including law, accounting, economics, banking, Islamic finance, AI and languages. This is to provide space for more outstanding young people, including STPM graduates, to continue their studies at research universities. Read more
● The government will build new hospitals, clinics and additional blocks including:
▹ Northern Region Cancer Centre in Kedah
▹ New additional blocks at Pontian Hospital, Johor, Banting Hospital and Sungai Buloh Hospital, Selangor
▹ Development of Advanced Surgical Block at USM Specialist Hospital, Kubang Kerian, Kelantan, Sabah and Heart Centre at Queen Elizabeth II Hospital
▹ 13 new Health Clinics, including in Machang, Kelantan; Teluk Kemang, Negeri Sembilan; Mukah, Sarawak; and Nabawan, Sabah; and including expediting the implementation of Cancer Centres in Kuching and Sultanah Aminah 2 Hospital in Johor.
● Health Minister receives to RM46.5 billion allocation for Budget 2026, an increase from RM45.3 billion, this year. Anwar announced all government hospitals and clinics will undergo maintenance and refurbishment works involving an allocation of RM1.2 billion while district hospital wards nationwide will also be upgraded with a RM100 million allocation. The replacement of outdated medical equipment with advanced tools for new medical disciplines will be procured with an allocation of RM755 million. Read more
● The EPF matching contribution scheme for voluntary contributions by gig workers and e-hailing workers is increased to RM600 per year or RM6,000 in a lifetime while the rate for informal workers is maintained at RM500 per year and RM5,000 in a lifetime. Read more
● The Rahmah Cash Aid (STR) and Rahmah Basic Necessities Aid (Sara) rates will be maintained in 2026 as it is this year. However, Anwar announces that the government will also give another round of RM100 Sara aid to all adult Malaysians next year.
● Sabah and Sarawak receive the highest Federal allocation with Sabah’s development allocation increasing to RM6.9 billion from RM4.4 billion (2022) while Sarawak’s continues to increase to RM6 billion ringgit from RM2.9 billion (2022).
▹ Starting this year, the Sabah and Sarawak Special Grant rate is increased to RM600 million from RM300 million (2023).
▹ Despite the regulation of electricity supply was handed over completely to Sabah in January 2024, the Federal Government is still providing RM1.2 billion to guarantee the continuity of supply
▹ The recent Penampang landslide has severed two main high-voltage electricity transmission lines—resulting in a power outage for 230,000 consumers on the east coast of Sabah.
Immediate steps are being taken to restore supply.
For long-term sustainability, the Federal Government has provided RM765 million in funding for the Southern Link Transmission Line Project.
▹ Since 2024, the federal government has provided RM1 billion in funding for Sabah water projects, including the installation of pipes in Tawau and the upgrading of old pipes in Kota Kinabalu, Penampang and Putatan.
The project is in the implementation phase and is expected to be completed next year. Read more
● In conjunction with the Deepavali celebration, the STR Phase 4 payment originally scheduled for November, worth RM2 billion, will be brought forward and distributed starting Oct 18. He also quoted a verse from the Tamil classic text Thirukkural, saying:, “Joy and hardship may come and go, but steadfastness of the heart remains the highest mark of human virtue”. Read more
● Government to provide RM3,000 tax relief for daycare which will be expanded to children in a wider age range. At present, it covers fees for children sent to registered daycare and pre-schools up to the age of six. Under Budget 2026, it will cover registered daycare and transit centres for children up to 12-years-old. Read more
● The government to allocate RM80 million for 2,500 community rangers to protect the country’s forests and endangered animals. The rangers will include 1,000 Orang Asli and 700 armed forces veterans.
● The MADANI government agrees to approve a 50 percent toll discount for two days in conjunction with Deepavali. Read more
● The MADANI government has agreed to table the Anti-Bullying Bill 2025 during this parliament session.
▹ The Ministry of Education has developed the School Anti-Bullying Framework (SAFE) as a comprehensive framework for preventing bullying in schools.
This includes empowering the roles of teachers and students through the Program Amalan Sekolah Penyayang.
▹ The Ministry of Education will improve the safety of students on campus by adding CCTV and organizing personality and leadership programs as a form of bullying and ragging prevention.
▹ The Women, Family and Community Ministry (KPWKM) provides psychosocial support through group counseling sessions.
▹ The Ministry of Communications has implemented the Safe Internet Campaign to increase cyber awareness among school students.
▹ Rakan Muda mobilising the “Fight Bullying” initiative among youth at the grassroots.
● Since its establishment, the Malaysian Border Control and Protection Agency (AKPS) has prevented the entry of more than 10,000 foreigners and seized goods that were being brought in illegally. For Budget 2026, RM45 million has been allocated for the AKPS to continue protecting the country’s borders. To meet the needs of the 220 AKPS workforce, priority is given to appointing military veterans.
● The Ministry of Defence receives an allocation of RM21.7 billion while the Ministry of Home Affairs receives RM21.2 billion.
This includes new acquisitions of:
▹ Medium, Short and Very Short Range Air Defence;
▹ Two Multi Role Support Ships; and
▹ 10 MALBATT vehicles.
A RM1 billion allocation for maintaining and purchasing assets of PDRM and uniformed bodies under the Ministry of Home Affairs.
This includes new acquisitions of:
▹ 100 4x4 pickups for PDRM intelligence and operations;
▹ four Fast Patrol Vessels, Marine Police Force;
▹ one Maritime Surveillance Aircraft, APMM.
RM1.5 billion allocation for the building and upgrading new facilities for uniformed bodies, including:
▹ State APMM Complex in Tok Bali, Kelantan;
▹ Sarawak IPK and Lawin Police Station, Gerik, Perak;
▹ Renewal of Integrated APMM Complex and Marine Police Force, Labuan;
▹ Kudat Maritime Zone Complex, Sabah;
▹ Artillery Training Centre, Syed Sirajuddin Camp, Gemas, Sembilan;
▹ Upgrading of Sungai Tujoh ICQS, Miri, Sarawak;
▹ Additional building of 23rd Battalion, PGA Sri Aman, Sarawak;
▹ Three new PGA Posts in Sungai Nibong, Sungai Banting and Sekinchan, Selangor. Read more
● Government assures fishermen’s living allowance of up to RM300 per month along with catch incentives with an allocation of RM160 million.
▹ The government will continue to maintain subsidized diesel at RM1.65 per liter specifically for fishermen.
▹ RM20 million provided for fishermen to upgrade their vessels to reduce dependence on foreign captains and crews and replace Zone B trawlers and pukat kenka trawlers to reduce unsustainable vessels.
RM112. 55 million ringgit is being allocated to support local fruit entrepreneurs, including incentives for planting and infrastructure for pineapple plantations, including in Sarawak, as well as other fruit crops such as soursop, guava and lime.
● The MADANI government is providing the highest agricultural subsidies in history with RM2.62 billion allocation provided for various subsidies and assistance to rice farmers such as rice price subsidies, rice crop subsidies, fertilizer subsidies, seed subsidies, and rice production incentives. Starting this year, the MADANI government will increase the rates of ploughing incentives and pesticide incentives to RM160 and RM300 per hectare per harvest season respectively. The government has also introduced a new incentive, namely the Rice Harvesting Incentive of RM50 per hectare per season to accommodate the use of diesel for harvesting. It is estimated that each rice farmer will receive assistance of approximately RM4,300 per hectare instead of RM3,790 ringgit per hectare per season.
● The government to allocate RM10 million to map out rare earth in the country with focus on developing downstream industries, including through international partnerships spearheaded by Khazanah. Read more
● To encourage domestic tourism in conjunction with Visit Malaysia Year 2026, Anwar announces a 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. Read more
● For 2026, the TVET allocation will increase to RM7.9 billion, from RM7.5 billion this year with emphasise on TVET education and training opportunities.
▹ The National TVET Council received RM45 million, among other things, to apply digital and AI technology knowledge to 10,000 tahfiz and pondok students through the IPT@Komuniti Program.
▹ MOE TVET institutions were provided with RM1.3 billion to educate 79,000 TVET students.
▹ HRD Corp with a fund of RM3 billion offers 3 million training opportunities, especially for the high technology, digital and energy transition sectors.
▹ PTPK provided RM650 million financing to benefit more than 25,000 trainees, especially in NIMP fields, such as AI, EV and semiconductors.
▹ The Skills Development Department through the Industry Academy Program trains and provides career opportunities to reduce low-skilled foreign workers with an allocation of RM34 million.
▹ GiatMARA offers training to more than 13,000 target groups including gig workers.
▹ Kolej Komuniti to provide Lifelong Learning Programmes for vulnerable communities such as the disabled, senior citizens, single mothers and Orang Asli. Read more
● The government is supporting economic activities at the country’s borders by improving basic infrastructure, including:
▹ Building a new 28-km road from Kalabakan, Sabah to Simanggaris, Indonesia
▹ Upgrading the Pasir Mas-Rantau Panjang railway line
▹ Upgrading the existing road to a four-lane dual carriageway in Rantau Panjang, Kelantan and the RTS Link project is fully operational as early as January 1, 2027. This will be able to support 10,000 passengers per hour each way during peak hours.
● The government allocates RM2.7 billion to support the development of economic activities on the northern border such as Delapan in the Bukit Kayu Hitam Special Border Economic Zone, which is emerging as a modern growth hub that connects the ASEAN supply chain and digital ecosystem.
● Currently, startups contribute RM1 billion to the GDP and generate 82,000 job opportunities. In line with the aspirations of the Malaysian Venture Capital Roadmap, the investment of KWAP’s Pioneer Fund and Jelawang Capital Khazanah has been increased to RM750 million from RM550 million.
▹ Cradle Fund with a fund of 55 million ringgit will implement the Equity Investment Programme and GLC Innovation Workshop which will be expanded to the private sector.
▹ The government plans to improve the existing venture capital tax incentives for a period of 10 years through special tax rates and dividend tax exemptions.
● Khazanah and KWAP to invest RM550 million towards the country’s semiconductor ecosystem in effort to boost collaboration between local firms and multinational companies. Under the National Semiconductor Strategy (NSS), BPMB is providing a loan of RM500 million to support high value-added activities such as R&D, especially by local companies that support the E&E ecosystem. Read more
● Government allocates RM1 bilion to intensify Ikhtiar MADANI Untuk Rakyat with the target of Kampung Angkat Madani set to 500 kampung and Sekolah Angkat Madani increased to 1,500 schools, which includes involvement by private bodies. Read more
● Anwar says the targeted RON95 subsidy rationalisation has the potential to save at least RM2.5 billion. BUDI95 initiative is running smoothly with more than 10 million people enjoying RON95 at RM1.99 per liter. The database of 16.5 million eligible citizens is being updated to provide additional quotas to 23,000 registered boat owners and more than 52,000 active e-hailing drivers. Overall, the targeted subsidy saves approximately RM15.5 billion annually from the government’s coffers. Read more
4.30pm: Following the enactment of the Consumer Credit Act, the MADANI government will amend the Consumer Protection Act to include Lemon Law elements to protect the rights of consumers who are often oppressed.
4.26pm: The Parliament will receive nearly RM220 million ringgit in allocation for 2026. In addition, RM5 million will be specifically allocated to strengthen the function of the Special Select Committees of the Dewan Negara and Dewan Rakyat as checks and balances on Government policies. Read more
4.25pm: Anwar announces that the 24th UTC in Seberang Perai will be launched in November while RM76.6 million will be allocated to improve the quality of UTCs’ infrastructure nationwide. Read more
4.22pm: The government proposes that vehicle tax exemptions in Langkawi and Labuan be limited to vehicle values not exceeding RM300,000, effective January 1, 2026 to address leakages.
4.20pm: Anwar announces RM700 million allocation for the enhancement and training of enforcement bodies such as MACC, PDRM, KPDN, JKDM and MyCC. Read more
4.19pm: Under the MADANI government, enforcement agencies such as the Malaysian Anti-Corruption Commission (MACC), Royal Malaysian Police (PDRM), Ministry of Domestic Trade and Cost of Living (KPDN), Royal Malaysian Customs Department (JKDM) and Malaysian Competition Commission (MyCC) have successfully obtained seizures and penalty collections of almost RM15.5 billion.
4.17pm: For 2026, the Federal Government’s revenue collection is estimated to increase to RM343.1 billion from RM334.1 billion, which is this year’s projection. Read more
4.16pm: Budget 2026 will mobilise and optimise national resources including GLIC funds, Federal Statutory Bodies and MKD companies through public spending totaling RM470 billion compared to RM452 billion last year. This includes:
▹ RM338.2 billion federal operating expenditure (OE);
▹ RM81 billion federal development expenditure (DE);
▹ RM30 billion GLIC investments;
▹ RM10 billion public-private investments; and
▹ RM10.8 billion ringgit Federal Statutory Bodies and MKD companies’ investments.
4.13pm: In the opening to his Budget speech, Anwar said the Gross Domestic Product (GDP) rate for the first half of 2025 recorded an encouraging growth of 4.4 percent. Despite the pressure from the United States tariff war, the country’s revised 2025 GDP projection of between 4.0 and 4.8 percent proves that our economy remains resilient. Read more
4.05pm: Anwar Ibrahim has begun tabling Budget 2026 in the Dewan Rakyat.
Budget 2026 is set at RM419.2 billion, lesser than the one announced last year, as the Anwar’s administration controls its spending amidst pressure from global oil prices. It is also the first contraction since Budget 2020. Read more
4pm: Anwar arrives at the Parliament building
3.31pm: Anwar Ibrahim dressed in a light blue-coloured Baju Melayu prepares to leave the Finance Ministry for Parliament, where he will be tabling the Malaysia Madani 2025 Budget at 4pm.
2.07pm: Prime Minister Datuk Seri Anwar Ibrahim has arrived at the Finance Ministry (MOF) headquarters ahead of tabling of the Budget 2025 at Dewan Rakyat this afternoon.
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Prime Minister Datuk Seri Anwar Ibrahim is set to present Budget 2026 in the Dewan Rakyat at 4pm today, marking a significant milestone as the first budget under the 13th Malaysia Plan (13MP).
This afternoon’s presentation represents the fourth budget delivered under the MADANI government’s leadership and establishes the foundation for the nation’s development trajectory over the next five years.
Building on MADANI Economic Principles
According to the pre-budget statement published on the Ministry of Finance’s dedicated budget portal, Budget 2026 will build upon the momentum generated by previous MADANI budgets’ robust foundations. Read more here
The budget maintains commitment to the three fundamental pillars of the MADANI Economy:
- Elevating the ceiling of national economic growth
- Raising the floor of citizens’ living standards
- Advancing good governance and public service transformation
- Addressing Global Challenges While Pursuing Growth
In an environment marked by global uncertainty and intensified international competition, Budget 2026 will prioritise Malaysia’s long-term economic strategy while simultaneously tackling immediate challenges.
This balanced approach aims to maintain growth momentum and protect economic resilience.
The pre-budget statement emphasises that initiatives will be implemented to enhance citizens’ well-being through targeted, outcome-based assistance programs designed to improve quality of life.
During a briefing session with media editors in Putrajaya on Wednesday, Anwar, who concurrently serves as Finance Minister, outlined that the fourth MADANI government budget will concentrate on three strategic areas:
- Safeguarding the welfare of the people
- Strengthening economic foundations
- Reinforcing the nation’s sustainable and inclusive development framework
Parliamentary Debate Schedule
Based on the official Dewan Rakyat calendar published on Parliament’s website, the Supply (Budget) Bill 2026 will undergo extensive parliamentary scrutiny. Members of Parliament will debate the budget at the policy stage over eight days, followed by ministerial winding-up sessions scheduled from October 29 to November 4.
Subsequently, committee-stage debates will take place from November 5 to 27, after which the budget is anticipated to receive approval from the Dewan Rakyat.
Significance of 13MP Framework
As the inaugural budget under the 13th Malaysia Plan, Budget 2026 serves as the primary blueprint for implementing the country’s development initiatives over the upcoming five-year period. This positioning makes it particularly significant in shaping Malaysia’s medium-term economic and social development trajectory.
The transition from the 12th Malaysia Plan to the 13MP marks a new chapter in national planning, with Budget 2026 setting the tone and priorities for this strategic period. Read more here
