Live updates: 2025 Budget

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, tables the 2025 Budget (Belanjawan 2025) in Parliament today.

Get the latest announcements and key highlights for the 2025 Budget in the New Straits Times.

• The Malaysian economy is forecasted to expand by 4.5 to 5.5 per cent in 2025 supported by improved global trade and stronger demand for electrical and electronic goods.
• For 2025, the government plans to reduce the country's fiscal deficit to 3.8 per cent of the gross domestic product (GDP) to cushion the impact of global uncertainties and alleviate debt burden over the long term.
• The 2025 Budget is the highest of all budgets at RM421 billion, an increase from the RM393.8 billion set aside for Budget 2024.
• The country's operating expenditure is expected to reach RM335 billion in 2025, while development expenditure is projected to remain at RM86 billion.
• Government is taking steps to reduce deficit from 5.5 per cent in 2022 to 5 per cent in 2023; and the forecasted deficit of 4.3 per cent in 2024 to a projected 3.8 per cent in 2025.
• The government aims to reduce its debt to RM80 billion next year, down from RM100 billion in 2022.
• Revenue collection for 2025 will continue to rise to RM340 billion.
• Sales tax will not be imposed on basic food items, but applied to non-essential items, such as premium imported goods like salmon and avocados.
• The government is introducing a 2 per cent dividend tax on dividend income exceeding RM100,000 received by individual shareholders, starting from the assessment year 2025.
• Consideration will be given to exempt dividend tax on income from government savings such as EPF, unit trusts under PNB, and dividend income from abroad.
• Subsidy adjustments aim to correct the imbalance of blanket subsidies that benefit the extremely wealthy, the elite and foreign individuals.
• RON95 subsidies will maintain for the majority of the population, as demonstrated in the targeted electricity subsidy, where 85 percent of the population remains unaffected at RM12billion.
• The government plans to implement targeted subsidies for RON95 petrol in mid-2025.
• Education subsidies will be gradually reduced for the top 15 per cent income group; savings will be used to improve infrastructure for boarding schools and public universities.
• MyCC has been allocated RM 27 million to eliminate cartels.
• Public-private partnership projects worth RM9 billion being implemented, along with direct domestic investments by government linked investment companies worth RM25 billion.
• Total public investment for development in 2025 will be worth RM120 billion.
• Development allocations for Sabah have been set at RM6.7 billion, while Sarawak has been allocated RM5.9 billion for development.
• The Special Grant for Sarawak and Sabah will be doubled to RM600 million.
• Four work packages for the Sabah Sarawak Link-Road (SSLR) Phase 2 have been finalised, valued at RM7.4 billion.
• The government will implement expansion projects for Tawau Airport in Sabah and Miri Airport in Sarawak, with a total cost of RM253 million.
• Only those in T15 income category to be affected by subsidy rationalisation for RON95, education and healthcare.
• Allocation for MACC next year has been increased to RM360 million from RM338 million this year.
• Federal Government and Sarawak state government will collaborate to develop the Sarawak Cancer Centre, at an estimated cost of RM1 billion.
• RM200 million has been allocated to the National Audit Department, an increase from RM173 million this year.
• Allocation for Parliament increased to RM180 million nect year, up from RM166 million in 2024, to strengthen roles of the Public Accounts Committee, and the Special Select Committees of the Dewan Negara and Dewan Rakyat as platforms for checks and balances.
• RM20 million allocated to support the All-Party Parliamentary Group for Malaysia's Sustainable Development Goals.
• RM 209 million has been allocated for the Legal Affairs Division from RM194 million, in line with the government's commitment for legal and institutional reform.
• The government will table a Consumer Credit Bill and establish a Consumer Credit Monitoring Board to regulate non-bank credit providers and credit service providers.
• More than RM60 million has been allocated to upgrade judicial infrastructure, including the development of an e-Justice system.
• The government will establish a Legal Reform Team to update more than 3,000 outdated laws.
• A Public Administration Efficiency Commitment Bill will be drafted, encompassing three major shifts: reducing bureaucracy, expediting processes, and enhancing service efficiency.
• RM1 bilion ringgit has been allocated for the Ikhtiar Sejati Madani programme for the following:
  • RM600 million to boost the rural economy in villages, towns, remote areas, and Orang Asli settlements
  • RM200 million to expand the Kampung Angkat Madani programmes in 200 villages worldwide
  • RM100 million for public universities to join the Kampung Angkat Madani programme with TVET institutions providing services such as house repairs and electrical wiring to the community.
  • RM100 million to empower PPR communities across the country through various socioeconomic programmes.
• The government will review all vacant spaces and buildings owned by government agencies, GLICs, and GLCs to ensure that these underutilised resources are repurposed for preschool, daycare, and skills training centers.
• The government continues to work on enhancing the functionality and user experience of MyDigital ID.
• A portion of the revenue generated from the sale of special license plate numbers will be allocated to assist underprivileged citizens including:
  • Covering the cost of obtaining motorcycle licenses for 15,000 underprivileged youths.
  • Assistance for the purchase of flight tickets for 60,000 underprivileged university students, particularly those from Sabah and Sarawak, to return to their hometowns.
  • Free helmets to 67,000 disadvantaged families to ensure the safety of their children.
• The role of the National Scam Resource Center is strengthened with an allocation of RM20 million.
• An Online Safety Bill will be drafted to address growing concern of cyberbullying.
• The National Cyber Security Agency will receive an additional 100 positions along with an additional allocation of RM10 million.
• An immediate allocation of RM150 million to local authorities and the Department of Irrigation and Drainage to commence cleaning works for drains and dredging rivers in cities affected by flash floods.
• Nearly RM600 million for NADMA in preparation for flood disasters. This includes over RM300 million that has already been set aside for readiness in the event of any disaster occurring at any time.
• An immediate matching grant of RM20 million has been allocated to the GLIC and GLC Foundations to enhance the response and distribution of assistance to victims in flood-affected areas.
• A total of RM50 million has been allocated for cleaning and upgrading drainage and canals.
• More than RM250 million has been allocated for slope repairs nationwide.
• RM21 million allocated to address the issue of land subsidence in Kerian Laut, Perak, Kedah, and Perlis.
• RM10 million has been allocated for conducting a Geotechnical Study of Soil Layer Structures on major roads in the Kuala Lumpur Golden Triangle.
• The government has agreed to introduce a New Investment Incentive Framework that focuses on high-value activities; expected to be implemented in the third quarter of 2025. They include:
  • Tax incentives for export growth will be broadened to encompass integrated circuit design activities.
  • Special tax deductions to private higher education institutions that develop new courses in areas such as digital technology, AI, robotics, the Internet of Things, data science, FinTech, and sustainable technology.
  • To strengthen the local supply chain and the ecosystem of key sectors, the Supply Chain Resilience Initiative will be introduced.
  • Establishing economic clusters based on each state's unique strengths, such as renewable energy in Perlis and Sabah, and specialty
  • Special income tax incentives are offered for investments in 21 economic sectors in states such as Perlis, Kedah, Kelantan, Terengganu, Sabah, and Sarawak, subject to the effectiveness of economic spillover, to reduce economic gaps between regions.
  • Tax incentives such as investment tax allowances or income tax exemptions will be provided for Carbon Capture, Utilization, and Storage activities.
• The National Fund-of-Funds (NFOF) will be established under Khazanah, operating next month with a fund of RM1 billion to support venture capital fund managers in investing in startup companies, with RM300 million allocated for 2025.
• KWAP, under the "Dana Perintis" is providing RM1 billion to support local startup activities, with RM200 million specifically allocated for 2025.
• Government will provide accelerated capital allowances for purchase of ICT equipment, software packages, and consulting fees, allowing these costs to be fully claimed within a two-year period in preparation for full implementation of e-Invoicing by July 1, 2025.
• The multi-tier levy system will be implemented early next year to reduce dependence on foreign workers. Revenue generated from this levy will be reinvested into the industry to facilitate automation.
• RM50 million set aside for the MSME Digital Matching Grant and the Digital Vendor Grant under BSN to help local entrepreneurs remain competitive in the market.
• RM100 million has been provided by MCMC over a period of five years to enhance the functions of Nadi Centres nationwide as community platforms for boosting income through online entrepreneurship activities.
• The government will announce a special incentive to attract quality investments and offer high-value jobs in the Johor- Singapore Special Economic Zone by the end of this year.
• Khazanah will launch the Mid-Tier Company Programme with a fund of RM1 billion aimed at providing financing to support the capacity building of local companies.
• To encourage local exporters to expand their operations into international markets, RM750 million has been allocated under the Exporter Sustainability Incentive Scheme by EXIM Bank.
• RM40 million ringgit has been provided under Matrade as a reimbursement grant to assist Malaysian exporters in promoting Malaysian-made products and services on the international stage, particularly in exploring new markets in Africa, Latin America, and the Middle East.
• The government plans to grant a 60 per cent investment tax allowance to logistics companies engaged in complex smart logistics activities for a period of five years.
• Nearly RM550 million ringgit allocated to intensify promotions and tourism activities for Visit Malaysia Year 2026 preparations.
• RM110 million will be provided to enhance tourism areas, foster eco-tourism collaborations, and support Unesco nominations.
• Khazanah has allocated RM600 million to restore and enhance the Sultan Abdul Samad Building and Carcosa Seri Negara.
• All ministries and departments involved in organising meetings and activities during Malaysia's Asean chairmanship have been instructed to procure crafts solely from local artisans.
• Over RM 300 million will be allocated under the National Energy Transition Facilitation Fund in 2025, compared to RM100 million this year.
• e-Rebates of up to RM70 million ringgit will be provided to encourage consumers and industries to purchase energy-efficient electrical equipment.
• Energy Performance Contracts will be introduced for use by all government agencies to achieve electricity bill savings of up to 10 per cent.
• Solar panels will be installed on rooftop spaces along nearly 5 kilometers of pedestrian walkways and parking areas in Putrajaya to save on electricity consumption.
• The Net Energy Metering (NEM) programme has been extended to June 30, 2025 to enable more rooftops to install solar photovoltaic (PV) systems.
• The implementation of the Green Technology Financing Scheme (GTFS) will continue, with a financing amount of RM1 billion until 2026.
• UEM Lestra and TNB will invest RM16 billion to enhance the capacity of transmission and distribution networks and to decarbonise industrial areas.
• A Carbon Tax on the iron and steel industry, as well as the energy sector in Malaysia will be introduced by 2026, to promote the use of low-carbon technologies. Revenue generated from this tax will be used to fund green research and technology programs.
• Ecological Fiscal Transfer (EFT) fund has been increased to RM250 million, up from RM200 million ringgit, to support state efforts in protecting forests and wildlife.
• Appointment of community rangers increased to 2,500, up from 2,000, with an allocation of RM80 million.
• RM300 million has been allocated to establish agricultural projects with state governments to support onion production in Perak, red tilapia farming in Pahang, and the enhancement of rice produce in Negri Sembilan.
• A Community River Cleaning Project will be implemented under the National River Trail Programme with an allocation of RM10 million.
• The government has agreed to upgrade existing regional sewage treatment plants and build a sewage pipeline network along Sungai Kim Kim in Johor to curb water pollution.
• The government, in partnership with private entities, will utilise nearly 8,800 acres of idle land owned by regional development authorities and their agencies to implement agricultural projects.
• RM27 million has been allocated as incentives for farmers and livestock breeders to enhance beef cattle, small ruminant goat production, dairy goats, sheep, and local onion production.
• The government has agreed to raise the ceiling for new house construction or relocation assistance for fishermen to RM84,000, up from RM56,000 for Peninsular Malaysia, and RM90,000, up from RM68,000 for Sabah and Sarawak.
• The five padi planting seasons every two years Phase 1 has commenced, involving RM1 billion, covering almost 11,000 hectares; expected to increase rice yields by 15 per cent and boost income of 6,100 farmers by 43 per cent.
• Allocation for Felda, Felcra, and Risda has increased to RM2.6 billion from RM2.4 billion.
• The government will initiate a pilot project to procure fertilizers, including organic fertilizers, through an open tender process based on rice planting areas.
• RM65 million has been set aside to develop irrigation and drainage for rice granaries and to expand Felcra rice estates in Sabah and Sarawak.
• The threshold value for the levy on extraordinary profits from palm oil has been increased to RM3,150 for Peninsular Malaysia and RM3,650 for Sabah and Sarawak.
• The Smallholder Latex Production Encouragement Programme under Risda will be implemented with a matching grant of RM60 million.
• Abandoned private rubber plantations will be revived with an allocation of RM20 million.
• The market price range structure and export duty rates for crude palm oil will be revised starting Nov 1. The current treatment for crude palm oil exports from Sabah and Sarawak will also be maintained.
• Incentives for smallholders to replant palm oil to replace unproductive old palms will continue, with an allocation of RM100 million.
• RM10 million ringgit will be used to implement mitigation and disease control measures to prevent further spread of pests in the rubber industry.
• A matching fund of RM100 million has been allocated to promote new Islamic finance innovations based on Islamic values.
• A matching fund of RM100 million has been allocated to promote new Islamic finance innovations based on Islamic values and is not similar to conventional finance.
• RM10 million has been set aside to support a collaboration between IIUM and INCEIF University to expand research in the field of Islamic economics.
• An additional 100 halal auditors will be appointed to expedite the issuance of halal certificates.
• The MYeHALAL system will also be enhanced to centralise 20 government agencies and 100 foreign halal certification bodies under a single platform.
• Bank Pembangunan Malaysia Bhd and SME Bank will offer specialised financing for halal SMEs, with nearly RM600 million available in funding.
• The Wakaf Madani will be expanded to include the private sector:
  • KWAP provides RM300 million to enhance the development of wakaf land for building independent retirement homes for low-income retirees.
  • UDA, with a fund of RM200 million, will continue to focus on the development of affordable housing for the people on wakaf land.
  • LPPSA will provide financing for civil servants purchasing homes on wakaf land.
  • SJKP will guarantee first-time homebuyer loans of up to RM500,000 for homes developed on wakaf land.
• RM40 billion is allocated as loan facilities and business financing guarantees under government agencies.
  • Micro loans are available up to RM3.2 billion, including those provided by Tekun and BSN to assist small traders, including the disabled community, Chinese community, and Bumiputera.
  • Malaysia Development Bank Berhad provides RM6.4 billion in financing to support sectors such as infrastructure development, digitalisation, tourism, logistics, transportation, as well as renewable energy and transition.
  • The government, through SJPP, will continue to guarantee financing for SMEs up to RM20 billion, including a special guarantee of RM5 billion for Bumiputera SMEs.
  • A loan fund of RM3.8 billion is provided by BNM to support entrepreneurs transitioning towards digitalisation and automation, while also continuing to assist the agro-food sector and sustainable practices.
  • RM650 million will also be specifically allocated to support women and youth entering the entrepreneurial field.
  • RM130 million is allocated specifically for implementing various programmes, including business financing for the Indian community.
• RM100 million is allocated for:
  • Constructing stalls and renovating public market infrastructure across all local authorities nationwide.
  • Providing trading spaces for small vendors at Tamu Desa in Sabah and Sarawak.
  • Upgrading business facilities under DBKL and Mara.
• Loan or financing limit for the Micro Financing Scheme for stamp duty exemption will be increased from RM50,000 to RM100,000, effective Jan 1, 2025.
• Full stamp duty exemption on loan or financing agreements completed by MSMEs with investors through the Initial Exchange Offering (IEO) platform, effective Jan 1, 2025, to Dec 31, 2026.
• A financing fund of up to RM100 million has been allocated under the Malaysian Cooperative Commission.
• RM800 million in financing under Mara and PUNB is available for more Bumiputera entrepreneurs, including local artisans.
• RM1.3 billion allocated to empower contractors in categories G1-G4, specifically Bumiputera contractors to undertake small and medium projects such as road construction, as well as the repair and maintenance of public infrastructure.
• The government has agreed to allocate 50 acres from the strategic development project of Bandar Malaysia as Malay reserve land.
• RM200 million has been allocated for the Cakna 2 Scheme to support the cash flow of G1-G4 contractors in completing government projects valued at up to RM1.5 million.
• PNB and PHB will continue to enhance collaboration in developing Malay reserve land for affordable housing projects, student accommodations, and commercial development.
• Allocations for the Sumbangan Tunai Rahmah (STR) dan Sumbangan Asas Rahmah (Sara) increased to RM13 billion, to benefit 9 million recipients.
• Next year, 4.1 million household recipients of STR will receive Sumbangan Asas Rahmah (Sara) aid amounting to RM100 per month, compared to 700,000 recipients this year.
• Single individuals will receive RM600 under STR.
• Households will receive RM4,600 in STR next year, compared to RM3,700 this year.
• Increase in cash assistance allocations under the Social Welfare Department from RM2.4 billion to RM2.9 billion.
• Elderly Assistance Aid rate raised to RM600 monthly up from RM500.
• Child Assistance Aid increased to RM250 per child 6 years and bleow and RM200 for children aged between 7 and 18; subject to a maximum rate of RM1,000 per family
• Payments for Phase 4 of the 2024 STR will be disbursed to recipients starting from Nov 7, involving an allocation of RM1.7 billion.
• RM250 million has been allocated for distributing essential goods in rural areas and villages, including expanding to new areas in Magandai, Kota Marudu, and Nanga Pelawan, Bintulu.
• The individual income tax relief on education insurance and medical insurance premiums has been increased to RM4,000.
• The individual income tax relief for medical expenses of up to RM10,000 also includes the portion of medical payments made by taxpayers under medical and health insurance and takaful products with co-payment features.
• RM1 billion provided to implement broader efforts to address the cost of living, including increased allocation for Payung Rahmah programme (RM300 million).
• RM700 million earmarked to expand various other cost of living programmes to control prices, including collaborations with supermarket operators, wholesale markets, retail shops, farmers' markets, cooperatives, and more.
• The income tax exemption on income derived from foreign sources, which has been subject to income tax in the source country, currently granted until December 31, 2026, will be extended until December 31, 2036.
• RM250 million ringgit allocated to distribute essential goods in rural and village areas, including expanding to new regions in Magandai, Kota Marudu, and Nanga Pelawan, Bintulu.
• The minimum wage has been increased to RM1,700 per month, effective Feb 1, 2025.
• Human Resources Ministry will publish guidelines for starting salaries across all employment sectors for workers' reference. For example, the starting salaries will be set at RM2,290 for Industrial and Production Technicians, RM3,380 for Mechanical Engineers, and RM2,985 for Creative Content Designers.
• The government has also decided to postpone the enforcement of the RM1,700 minimum wage for employers with fewer than five employees for a period of six months, effective from Aug 1, 2025.
• An allocation of RM250 million will be provided to increase the participation of more hardcore poor individuals in the People's Income Initiative (IPR) programme to enhance their income.
• A total of RM200 million is allocated for the Progressive Wage Policy, benefiting 50,000 workers.
• To encourage more informal workers and those without fixed incomes to save for retirement, the matching incentive for i-Saraan under EPF will be increased to 20 per cent, subject to a maximum annual matching incentive of RM500 or RM5,000 over a lifetime.
• The Education Ministry has been allocated RM64.1 billion, compared to RM58.7 billion this year— the highest allocation in history.
• The i-Suri program will continue with matching incentives through government contributions and active contributions from participants.
• The Self-Employment Social Security Scheme will cover up to 70 per cent of worker contributions with an allocation of RM100 million.
• The Tenang Protection Scheme will continue in collaboration with Bank Negara, the insurance industry, and takaful providers to benefit up to 2 million STR recipients.
• A total of RM2 billion has been allocated for the upgrading and maintenance of schools nationwide. This includes:
  • RM1 billion specifically for maintaining all types of schools, particularly dilapidated classrooms.
  • RM1 billion for upgrading inadequate infrastructure in 543 schools, especially in Sabah and Sarawak.
• EPF is reviewing its schemes to strengthen the intergenerational transfer approach, allowing a portion of an EPF member's savings to be directly transferred into the EPF accounts of close family members.
• 44 new schools will begin construction next year, including:
  • SK Bandar Putra Indah, Batu Pahat, Johor
  • SMK Bandar Seri Putra (2), Hulu Langat, Selangor
  • SMK Lok Kawi, Putatan, Sabah
  • SMK Semeling, Sungai Petani, Kedah
  • SK Dudong, Sibu, Sarawak
• The government plans to extend the income tax relief for contributions to the Private Retirement Scheme and deferred annuity premium payments until the assessment year 2030.
• The government plans to make it mandatory for all non-citizen workers to contribute to the EPF. This proposal will be implemented in phases.
• RM100 million allocated for the Broadband Connectivity Infrastructure Programme for rural schools to ensure internet access. The existing Point of Presence (POP) projects will continue with over RM800 million allocated.
• Boarding schools will receive RM2 billion for food assistance.
• RM100 million allocated for school facilities including canteens and prayer rooms.
• RM870 million allocated for Supplementary Food Programme 870 million ringgit, an increase from RM784 million; to benefit over 860,000 students, with opportunities given to local food suppliers.
• Nearly RM800 million in Early Schooling Assistance is allocated to all 5.2 million students from Year 1 to Form 5, regardless of their parents' income.
• Poor Students Trust Fund increased to RM180 million, up from RM150 million this year.
• The government has agreed to increase the per-capita grant rate for TVET education by 15 per cent at over RM900 million.
• A special allocation of RM10 million has been provided as School Assistance for 687 rural schools.
• The Higher Education Ministry has been allocated RM18 billion compared to RM16.3 billion this year.
• The government will increase the Cost of Living Allowance for student teachers in the Education bachelor's degree programme at teacher training institutes to RM530 monthly, up from RM430.
• A total allocation of RM4 billion has been allocated to university students in the form of scholarships, loans, and education allowances.
• The individual tax relief on net savings in the National Education Savings Scheme (SSPN) will be extended for another three years.
• At least 50 per cent of scholarships from GLIC and GLIC will be allocated to students from low- and middle-income families.
• Under the Geran Padanan Ihsan initiative, the government has agreed to expand the grant criteria, allowing up to RM5,000 for savings in the SSPN account of students pursuing higher education for families earning up to RM6,000, up from RM4,000, for a duration of two years.
• Permodalan Nasional Berhad will implement the Madani Literacy Programme, offering free opening of ASB accounts worth RM50 to 100,000 new students pursuing higher education.
• PTPTN to provide an education financing fund amounting to RM500 million specifically prioritising students pursuing studies in STEM fields at public universities.
• RM635 million is allocated for improving infrastructure, replacing outdated equipment, and expanding internet access in all public universities.
• UiTM is given an additional RM20 million to produce more electrical and electronics engineers.
• AI education will be expanded to all research universities with an allocation of RM50 million.
  • UM will focus on AI in the medical field to combat fatal diseases such as cancer.
  • UPM will establish the Malaysian Cryptology Technology and Management Center in collaboration with NACSA, following up on AI in quantum computing to prepare for complex cybersecurity threats.
  • USM is exploring AI in semiconductors in line with Malaysia's status as a global semiconductor hub, enhancing collaboration with companies including Intel and Infineon.
  • UKM leads in AI for language translation in an effort to elevate the Malay language as a language of knowledge.
• R&D fund increased to RM600 million, up from RM510 million, under the Higher Education Ministry and the Science, Technology, and Innovation Ministry.
• RM170 million allocated for the Malaysia Science Endowment (MSE) Trust Fund to provide matching grants for private sector and industry bodies to drive R&D programs.
• RM10 million will be given for the The Malaysia Techlympics programme, to encourage the development of local expertise in robotics and AI technology.
• In line with the National TVET Policy, the government has increased the allocation for TVET to RM7.5 billion. The priorities include:
  • Enhancing collaboration with the industry;
  • Providing training opportunities for vulnerable youth
  • Delivering TVET services for the benefit of the community
• Vocational colleges and technical secondary schools will continue to provide education to 77,000 students, with an allocation of RM1.2 billion.