Here is a brief summary of the essence of the 2026 Budget presentation by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Minister of Finance, which took place in Parliament on October 10.
Subsidy Reform
The government saves RM15.5 billion a year thanks to targeted subsidies.
Under BUDI95, eligible Malaysians can still pump RON95 at RM1.99 per liter. The price is stable for most consumers.
Fishermen, small farmers and diesel users still get a fuel subsidy or a monthly assistance of RM200, so they will not be charged too high a cost.
The diesel saves RM5 billion a year, which can be reused to help the people in other areas.
Tax Relief
This year, there are new and upgraded tax reliefs, which can ease the burden on households a little.
Childcare assistance is now RM3,000 including daycare centers and transit for children under 12 years old. Better for working parents.
Local tourists can claim RM1,000 and RM2,500 for energy-saving appliances or food chopper for a more eco-friendly lifestyle.
Assistance for disabled children under 18 years old increased to RM10,000 from RM6,000. This is a good help for families who need extra care.
STR and SARA assistance increased to RM15 billion
.9 million STR recipients will now get SARA assistance of up to RM1,200.
Around 1 million families will get e-Kasih assistance of RM2,400 per year.
Families will receive assistance of RM4,600, while singles will also receive RM600 under SARA.
A total of 22 million Malaysians aged 18 and above will receive RM100 SARA money by February 2026.
Youth
The official youth age is now 15 to 30 years.
RM250 million pilot PLKN 2026 for university students to build discipline and teamwork skills.
Young entrepreneurs under 30 can apply for RM150 million BSN financing, if they want to start a business early.
Khazanah's K-Youth program continues with RM200 million to train 11,000 youth in the technology and high-value job sector.
All Malaysians aged 18 and above will also receive a RM100 SARA payment in February 2026.
Students
RM2 billion aid to upgrade schools, especially in Sabah and Sarawak to provide a better environment for learning.
Universities now offer AI courses in medicine and semiconductors.
Anti-bullying programs will be strengthened to create a peaceful and safe atmosphere on campus.
Borneo Allocation Increased
RM6.9 billion for Sabah and RM6 billion for Sarawak, almost double since 2022.
Special grant doubled to RM600 million to fund more local projects.
RM1.67 billion for Pan Borneo Sabah, while RM1 billion for water works.
More than RM700 million has been allocated to purify water and generate electricity for 3,200 homes in rural areas.
Free PTPTN for Poor Families
The government has announced an initiative to waive PTPTN loan repayments for 5,800 students from poor families who are pursuing their studies at IPTA.
This initiative includes an allocation of RM120 million.
This measure aims to ease the financial burden of low-income groups and ensure more inclusive access to higher education.
EPF Withdrawal Limit Increased to RM10,000
The government has announced that the EPF withdrawal limit for Hajj purposes will be increased from RM3,000 to RM10,000.
This measure is implemented to help Muslims perform Hajj more easily.
This increase is expected to provide relief to prospective pilgrims who are facing an increase in the cost of performing Hajj every year.
Cigarette & Liquor Duty Rates
The duty rates on cigarettes and liquor will be increased in phases starting November 1, 2025.
2 sen per stick for cigarettes.
RM40 per kg for cigars, cheroots and cigarillos.
RM20 per kg of tobacco content for heated tobacco products.
The excise duty rate for liquor products has been increased by 10%.
The move was made to increase national revenue and control the use of substances that have a negative impact on public health.
Civil Servants
The government announced a special bonus of RM500 to all civil servants in Grade 56 and below.
Government retirees will also receive RM250 as a token of appreciation for their dedicated service to the country.
The payment of this special financial assistance will be made before next year's Aidilfitri celebration.
Overall, Budget 2026 emphasizes the well-being of the people, support for youth and students, and infrastructure development across the country while ensuring the country's finances remain resilient. These measures are also hoped to ease the burden of the people's cost of living and drive inclusive economic growth.
