Budget 2025 highlights

KUALA LUMPUR, Oct 18 — The following are the highlights of Budget 2025 tabled in Dewan Rakyat today by Prime Minister Datuk Seri Anwar Ibrahim.

The budget allocates a total of RM421 billion, of which RM335 billion is for operating expenditure and RM86 billion for development expenditure, excluding RM2 billion contingency savings.

• Sales tax will not be imposed on basic food items used by the people.
• The government will continue to bear subsidies of about RM12 billion, covering 85 per cent of the population.
• The government plans to implement targeted subsidies for RON95 petrol in mid-2025

  RM27 million is allocated to the Malaysia Competition Commission to continue breaking up cartel dominance.

• RM60 million is allocated to the Domestic Trade and Cost of Living Ministry and the Royal Malaysian Customs Department to combat the leakage of public funds.
• The Madani Government is honouring the agreement of previous leaders concerning the 1963 Malaysia Agreement, with special attention given to Sabah and Sarawak.
• Sabah's development allocation is RM6.7 billion, while Sarawak is RM5.9 billion.
• Starting in 2025, the government will double the Special Grant for Sarawak and Sabah to RM600 million.
• The Malaysian Anti-Corruption Commission's allocation has increased to RM360 million from RM338 million.
• Parliament's allocation has increased to RM180 million from RM166 million.
• Over 3,000 outdated laws need to be reviewed, and the government will form a Legal Reform Task Force.
• Over RM60 million is allocated to upgrade judicial infrastructure, including the development of the e-Kehakiman system.
• The Administrative Efficiency Commitment Bill will be drafted, covering three major shifts: reducing bureaucracy, speeding up processes, and enhancing service efficiency.
• RM25 million is allocated to the Special Task Force on Agency Reform.
• All Urban Transformation Centres will be equipped with a Queue Management System to allow people to obtain their queue numbers online.
• Mobile services will be further expanded with a RM100 million allocation.
• RM1 billion is set aside for the Ikhtiar Sejati Madani initiative.
• All vacant spaces and buildings owned by government agencies, government-linked investment companies (GLIC), and government-linked companies (GLC), will be utilised for preschool purposes.
• The role of the National Scam Response Centre will be further strengthened with a RM20 million allocation.
• The National Cyber Security Agency will be given an additional 100 staff members, along with an increased allocation of RM10 million.
• RM150 million will be channelled to the local authorities and the Department of Irrigation and Drainage to begin drainage cleaning and river dredging works to mitigate flash floods.
• RM600 million is allocated to the National Disaster Management Agency in preparation for flood-related disasters.
• A RM20 million matching grant is provided to GLIC and GLC foundations to enhance response and aid distribution to flood victims in affected areas.
• Nearly RM550 million is allocated to intensify promotions and tourism activities ahead of Visit Malaysia Year 2026.
• RM600 million is allocated to Khazanah National Berhad to preserve Kuala Lumpur as a city of culture and creativity.
• RM300 million is allocated for agricultural project collaborations with state governments, an increase from RM150 million this year.
• RM27 million is allocated as incentives for farmers and livestock breeders to boost production.
• RM2.78 billion is set aside as subsidies, aid, and incentives for padi farmers and fishermen, an increase from RM2.6 billion.
• The ceiling rate for aid to build new or relocate fishermen's houses has been raised to RM84,000 for Peninsular Malaysia and RM90,000 for Sabah and Sarawak.
• An additional 100 halal auditors will be recruited by the Department of Islamic Development Malaysia to expedite the issuance of halal certificates.
• RM130 million is allocated to implement various programmes, including financing for the Indian community.
• RM100 million is allocated to ensure the comfort and safety of stalls and markets.

  4.1 million Sumbangan Tunai Rahmah (STR) household recipients to receive Sumbangan Asas Rahmah (Sara) of RM100 per month in 2025, up from 700,000 recipients this year.

• Sara aid is to be credited to recipients' MyKad from April 2025, with single individuals receiving RM600.
• The aid for senior citizens increased to RM600 per month from RM500.
• The child assistance rate for poor families at RM250 per child aged six years and under and RM200 per child aged seven to 18.
• Payments for Phase Four of STR 2024 are to be distributed from November 7, involving a RM1.7 billion allocation.
• RM1 billion is set aside to implement initiatives aimed at addressing the cost of living more broadly.
• RM250 million is allocated to distribute basic necessities in rural and remote areas.
• Individual income tax relief for education and medical insurance premiums is raised to RM4,000
• Individual income tax relief for medical expenses is increased to RM10,000.
• Minimum wage raised from RM1,500 to RM1,700 per month, effective February 1, 2025.
• RM200 million is allocated for Progressive Wage Policy that will benefit 50,000 workers.
• RM64.1 billion is allocated to the Education Ministry, compared to RM58.7 billion this year, the highest allocation in history.
• RM2 billion is allocated for upgrading and maintenance projects for schools nationwide.
• RM100 million is allocated for the Fixed Line Broadband Infrastructure Connectivity Programme in rural schools.
• RM18 billion is allocated to the Higher Education Ministry.
• Individual tax relief for net savings in the National Education Savings Scheme is to be extended for another three years.
• RM635 million is allocated to improve infrastructure, replace outdated equipment, and expand internet access in all public universities.
• Artificial intelligence-related education expanded to all research universities, with a RM50 million allocation.
• Health Ministry received the second-highest allocation at RM45.3 billion.
• Nearly RM900 million is allocated for 48 People’s Housing Residency projects and 14 Mesra Rakyat housing projects.
• Individual tax relief of up to RM7,000 on interest payments for housing loans to encourage first-time home ownership.
• Basic infrastructure in villages, rural, and remote areas is to be prioritised for the comfort of the people, with a nearly RM2.9 billion allocation.
• RM2.8 billion is allocated to maintain Federal roads.
• Individual income tax relief on payments for taska and tadika fees to be extended until the 2027 assessment year.
• The allocation for elderly welfare is to be increased to RM1 billion to fund cash aid, pocket money for elderly care institutions, and activity centres.
• The welfare of the Orang Asli community is to be prioritised under the Madani Budget, with the allocation increased to nearly RM380 million, up from RM330 million.
• RM10 million is allocated for the Second Chance Programme to reintegrate ex-convicts into society.
• RM2 billion will be allocated for Islamic affairs next year.
• The development of national sports is to be further intensified with an allocation of over RM230 million.
• The organisation of programmes to foster unity and national identity is to be increased with a RM50 million allocation.
• RM50 million is allocated for the repair and maintenance of registered non-Muslim places of worship nationwide.
• Digital Content Fund allocation increased to RM65 million to promote artwork, especially those based on the spirit of nationhood.
• RM19.5 billion is allocated to the Home Ministry.
• RM21.2 billion is allocated to the Defence Ministry.
• Over RM1.8 billion is allocated for building, maintaining, and repairing all public servant quarters and Armed Forces Family Homes.
• A special assistance of RM500 to civil servants and RM250 to pensioners.

— Bernama