Kuala lumpur: The Malaysian government has unveiled the Budget 2026, themed "Belanjawan MADANI Keempat: Belanjawan Rakyat," marking the first budget under the 13th Malaysia Plan (13MP) 2026-2030. Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister, presented the budget in the Dewan Rakyat today.
According to BERNAMA News Agency, more than RM700 million has been allocated to enhance enforcement agencies, including the MACC, PDRM, KPDN, JKDM, and MyCC, through training and asset procurement. JKDM will introduce digital tax stamps to combat forgery and leakages. The Special Task Force on Agency Reform (STAR) has helped Malaysia climb 11 spots in the Global Competitiveness Index, saving compliance costs up to RM1.1 billion. An allocation of RM25 million has been designated for STAR's digitalisation efforts.
MyDigital ID aims to reach 15 million users by the end of 2025. RM76.6 million will be used to improve UTC infrastructure, while RM31.5 million is set aside for embassy asset maintenance. The government plans to amend the Consumer Protection Act to include the Lemon Law. The BUDI95 database update will include more quotas for boat owners and e-hailing drivers, and RM1 billion has been allocated to intensify MADANI efforts.
Significant allocations for development include RM6.9 billion for Sabah, RM6 billion for Sarawak, and RM765 million for the Southern Link Transmission Line project in Sabah. Highway projects in these regions will cost around RM48 billion. RM2 billion will develop the MADANI Submarine Cable Connection (SALAM), and RM20 million is allocated under the Tamu Desa initiative for traders in Sabah and Sarawak.
In education, RM7.9 billion has been allocated for TVET, with RM45 million for digital technology training for tahfiz and pondok students. RM1.3 billion will train 79,000 students in TVET institutions, while RM3 billion will fund HRD Corp's training opportunities. The tourism sector receives over RM700 million, with tax deductions and exemptions to boost local tourism and heritage projects.
The budget addresses social welfare through STR Phase 4 payments, cost of living assistance, incentives for gig workers, and increased allocations for senior citizen welfare. The Health Ministry is allocated RM46.5 billion, with provisions for contract doctors, increased allowances, and excise duty on alcoholic beverages. Education receives RM66.2 billion, with funds for school upgrades and early schooling aid.
Infrastructure projects include RM2.5 billion for road maintenance and RM3.3 billion for rural infrastructure. Broadband expansion and water supply investments are prioritized, with RM210 million for an Early Warning System and RM13 billion for water supply investments over five years. Finally, cultural and creative industries receive significant support, with incentives for film and music production tied to Visit Malaysia Year 2026.