Belanjawan 2025 presents a range of promising initiatives designed to address the challenges faced by young Malaysians. These measures focus on critical areas such as employment, education, and entrepreneurship, reflecting a commitment to supporting the younger generation. However, while these efforts are commendable, they may not fully tackle the complex issues that youth confront daily. A more comprehensive approach is required to ensure the long-term success and well-being of young Malaysians.
One of the most notable steps in Belanjawan 2025 is the increase in the minimum wage to RM1,700. This move is significant, particularly for young people grappling with the rising cost of living. Yet, the situation is complicated by the growing use of Buy Now, Pay Later (BNPL) services, which are becoming a financial crutch for many young Malaysians. BNPL is a convenient option for this generation, who often live paycheck to paycheck. Nearly half of young Malaysians cite financial instability as a major source of stress, and BNPL services add to their financial complexities as they struggle to balance limited resources with the desire to maintain a certain lifestyle.
Belanjawan 2025’s commitment to regulating BNPL under the Consumer Credit Act is a crucial step toward protecting young consumers from falling into cycles of debt. However, this is only part of the solution. The Khazanah Research Institute (KRI) has recommended including BNPL in calculations of household debt, a step that would provide a more accurate picture of the financial strain many young Malaysians are experiencing. Without fully accounting for this debt, the financial health of households may be underestimated, placing many youths at risk. Gen Z’s digital savvy nature has led them to embrace BNPL, but without proper financial literacy, this trend could result in significant long-term debt. Better regulation and more transparent tracking of BNPL usage are essential to safeguarding their financial future.
Another highlight of the budget is the provision of tax incentives for universities offering courses in Artificial Intelligence (AI). This is aimed at producing graduates with the skills necessary to thrive in a growing and critical sector. While this initiative is undoubtedly positive, simply offering tax incentives is not enough. We need to measure the effectiveness of these incentives by assessing whether AI graduates are securing jobs that align with their qualifications. Moreover, these jobs should offer stability and opportunities for career growth. Without tracking the outcomes of these initiatives, we risk missing the opportunity to create sustainable, long-term employment for young people in high-demand sectors like technology.
Belanjawan 2025 also allocates RM25 million to continue the Rakan Muda program, an initiative aimed at developing the potential of young people, particularly in community development. This investment is vital as it acknowledges the role of youth not just as the leaders of tomorrow, but as active contributors to today’s communities. However, community engagement must go beyond mere participation in programs. Young people need to be given a voice in decision-making processes at the local level. One way to achieve this is through hyper-local community representation, where youth can serve on councils or local government committees. This would empower them to enact real, on the ground changes, ensuring that they are not just part of the conversation but actively shaping the decisions that affect their lives.
A persistent challenge in youth-related policies is the lack of coordination among the various ministries responsible for their implementation. The Ministry of Education, Ministry of Finance, and Ministry of Housing, among others, all play critical roles in shaping policies that affect young people. However, these ministries often operate in silos, making it difficult to execute cohesive and effective strategies. For Belanjawan 2025 to truly benefit the youth, stronger collaboration between ministries is essential. Issues such as housing, job creation, and financial literacy are interconnected and must be addressed through cross-ministerial cooperation. Only then can the allocated funds be used effectively, ensuring that youth programs achieve their intended impact.
One glaring omission in Belanjawan 2025 is a focus on political engagement. According to a survey by the Merdeka Center, 68% of young Malaysians are disinterested in politics, and 59% distrust politicians. This disengagement is a serious concern. If young people are not involved in politics, it will be difficult for them to influence the future direction of the country. While initiatives like Kuasa Orang Muda are working to encourage youth political participation, they need greater government support and, more importantly, political will. It is not enough to merely encourage voting; young people need meaningful opportunities to participate in policy-making and hold leaders accountable.
Belanjawan 2025 is undoubtedly a step in the right direction. However, to truly unlock the potential of Malaysia’s youth, we must go beyond financial aid and entrepreneurship programs. The deeper issues of political engagement, financial literacy, and youth representation in governance must also be addressed. Only by empowering young people to take an active role in shaping the country’s future can we create a society where they are not just participants, but true leaders driving Malaysia’s growth and success.
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