● 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.
● 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.
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.
Stay tuned for more updates on our social media channels: X, Facebook, Instagram, Telegram and WhatsApp
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