Kuala lumpur: The MADANI Government's 2026 Budget highlights its commitment to national development and the well-being of its citizens, emphasizing improved quality of life and economic resilience.
According to BERNAMA News Agency, the RM470 billion Budget 2026, themed Belanjawan MADANI Keempat: Belanjawan Rakyat, is designed to stimulate economic growth while ensuring equitable wealth distribution among Malaysians. This budget maximizes national resources by involving Government-Linked Investment Companies (GLICs), Federal statutory bodies, and Minister of Finance Incorporated (MOF Inc) companies, with public expenditure rising to RM470 billion from RM452 billion last year.
Prime Minister Datuk Seri Anwar Ibrahim, also the Finance Minister, presented the budget in the Dewan Rakyat, emphasizing the government's pursuit of comprehensive national rejuvenation and reform. He highlighted that after nearly three years of bold reforms under the MADANI administration, significant progress is being seen in economic growth and public well-being.
The 2026 Budget, the fourth under Anwar's MADANI Government and the first within the 13th Malaysia Plan (13MP), lays the groundwork for the country's development agenda over the next five years. Anwar explained that the MADANI Economy framework is geared towards serving the people by providing essential services, creating jobs, generating income, and easing living costs.
Anwar outlined nine Key Commitments under the budget, grounded in the three pillars of the MADANI Economy framework: enhancing national growth, improving living standards, and promoting good governance and public service reform. The First Commitment focuses on good governance, aiming for fiscal efficiency and strengthened national institutions to tap economic potential and improve living standards.
Anwar noted that instead of increasing taxes, the government focuses on better governance, including targeted subsidies, without burdening citizens. This approach has led to successful anti-corruption measures, smuggling prevention, and cartel dismantling, collectively recovering nearly RM15.5 billion through asset seizures and penalties by enforcement agencies.
The Second Commitment prioritizes the needs of the people with initiatives like targeted subsidies, the Ikhtiar MADANI for the People initiative, and the MADANI Mobile Services programme. By adjusting prices and tariffs and introducing targeted subsidies for certain fuels, the government saves approximately RM15.5 billion annually, redirecting funds to social welfare and infrastructure.
The Third Commitment emphasizes a high-value economy through strategic investments in high-growth sectors like semiconductors and digital technology, supported by an enhanced TVET ecosystem. The Visit Malaysia 2026 campaign is projected to generate RM329 billion in tourism revenue, boosting economic growth and benefiting various stakeholders.
The Fourth Commitment focuses on Malaysian innovation and "Made in Malaysia" exports. Anwar emphasized the need for Malaysia to lead in technology and digitalisation. The Fifth Commitment involves strengthening national resilience through proactive policies in response to global challenges.
Budget 2026 also stresses narrowing regional and socio-economic gaps, committing to inclusive development. The Sixth Commitment involves infrastructure upgrades, empowering economic participation, and supporting vulnerable communities. The government also extends its care to refugees, ensuring inclusivity in national development.
For the Seventh Commitment, Anwar reiterated the government's priority on people's welfare, with expanded cash assistance under Budget 2026. Notably, the hardcore poverty rate has declined significantly, and assistance packages have been expanded, supported by savings from targeted subsidies.
Under the Eighth Commitment, the budget aims to strengthen public services in healthcare, education, public transport, and housing, with priority allocations for key sectors. The Ninth and final Commitment focuses on advancing Islamic values and education, with substantial allocations to strengthen relevant institutions and promote an inclusive understanding of Islam.
In a significant move, the government will offer full loan waivers to low-income students at public universities starting next year, enhancing educational opportunities.