Kuala lumpur: The government's proposal under Budget 2026 to expand individual income tax relief for childcare and preschool expenses is expected to ease the cost-of-living burden for low- and middle-income families while encouraging more women to join the workforce.
According to BERNAMA News Agency, Associate Professor Dr Amini Amir Abdullah of the Department of Nationhood and Civilisation Studies, Faculty of Human Ecology, Universiti Putra Malaysia (UPM), stated that the expanded tax relief will directly benefit working parents, particularly women in the formal sector. He highlighted that data from the Department of Statistics Malaysia showed female labour participation in 2024 was only about 56 per cent, compared to over 80 per cent for men, with childcare responsibilities being a key barrier.
Dr Amini Amir noted that the policy acknowledges the ongoing need for after-school care for children, strengthens the family support ecosystem, and promotes a healthier work-life balance. He also emphasized that this initiative could increase demand for registered childcare centres, allowing for better regulation of quality and safety standards.
He further explained that the initiative would encourage the formalisation of unregistered childcare providers, improve safety and welfare standards, and create new jobs in the early childhood care sector. He described the expanded relief as a significant step towards supporting family wellbeing, empowering women, and enhancing Malaysia's early childhood education ecosystem. However, he cautioned that effective implementation must balance fiscal efficiency, social justice, and gender equality.
Prime Minister Datuk Seri Anwar Ibrahim, under Budget 2026, announced that the RM3,000 tax relief for childcare and preschool expenses for children aged up to six will be extended to registered day care or transit centres for children aged up to 12, effective from the year of assessment 2026. Additionally, the Prime Minister announced legal aid for 5,000 underprivileged single mothers to assist with divorce, alimony, and child custody cases.
Welcoming the initiative, Women and Single Mothers Welfare Association (WITUS) president Shiela Tukimin expressed that it was a crucial relief for women who cannot afford legal representation. She emphasized that this assistance allows single mothers to defend their rights in court without being burdened by high costs, framing it as not just legal aid but also social justice that upholds women's dignity.