Kuala lumpur: In a move to bolster Malaysia’s economic framework, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has tabled the Fourth MADANI Budget: People’s Budget for 2026, highlighting significant financial commitments and reforms aimed at optimizing national resources. The budget sees an increase in public spending to RM470 billion, up from RM452 billion in the previous year.
According to BERNAMA News Agency, the government has allocated RM180 million under the NIMP Industry Development Fund to finance industrial development programs in high-impact sectors. Additionally, Government-Linked Investment Companies (GLICs), through the GEAR-UP initiative, will increase domestic investments to RM30 billion compared to RM25 billion this year. Under the National Strategic Sector (NSS), Bank Pembangunan Malaysia Berhad (BPMB) will offer RM500 million in loans to enhance high-value-added activities within the local electronics and electrical ecosystem.
The budget also emphasizes support for local entrepreneurs, with government loan facilities and guarantees projected to rise to RM50 billion next year, an increase from the current RM40 billion. A focus on automation and digitalization is evident, as Development Financial Institutions (DFIs) will provide nearly RM1 billion in financing and grants to support business operations’ technological advancements.
In a bid to support the startup ecosystem, the government is allocating RM20 million to promote mechanization and automation, particularly within the palm oil sector, in collaboration with the Malaysian Palm Oil Board (MPOB) and major palm firms. Another RM20 million is reserved for the welfare of smallholders. The government is also keen on nurturing innovation in the tech sector, with RM53 million under the Malaysia Digital Accelerator Grant to accelerate growth and adoption of technologies such as blockchain, AI, and quantum computing.
The budget introduces measures to boost the real estate sector, including a proposal to extend the full stamp duty exemption on transfer instruments and loan agreements for first homes priced up to RM500,000 until the end of 2027. Additionally, there is a proposed 10% special tax deduction on costs to convert commercial buildings into housing.
Environmental considerations are addressed through the introduction of a carbon tax, initially targeting the iron, steel, and energy sectors, and continuing rebates for energy-efficient equipment purchases. Furthermore, the government proposes a 100% Green Asset Investment Tax Allowance for companies utilizing locally manufactured green technology products.
The government’s strategic vision includes enhancing Malaysia’s global trade footprint, with the MATRADE Market Development Grant providing RM60 million to assist SMEs in exporting Malaysian-made products to new and existing markets in Africa, Latin America, and Central Asia. Additionally, EXIM Bank offers RM500 million in soft loans to help companies navigate global trade tariff tensions.
Overall, Budget 2026 lays a robust foundation for economic growth and sustainability, underscoring Malaysia’s commitment to innovative development and strategic financial management.