KUALA LUMPUR, Oct 11 — The government’s recommendation in Budget 2026 for a RM3,000 tax exemption on childcare costs, including for transit centres, is a positive move for the nation’s long-term care (LTC) sector.
State executive councillor for women empowerment and welfare Anfaal Saari said government investment in the LTC sector is still low compared with Organisation for Economic Co-operation and Development (OECD) members, so the tax exemption is a good start.
“Among the attractive initiatives announced in Budget 2026 yesterday was the increase in the eligible age limit (for tax exemption on childcare costs) from six to 12, including care at preschools and transit centres (for kids going from national schools to religious schools).
“I hope the government can increase its investment in LTC in the future, and that public-private cooperation can be strengthened to empower the care industry,” she said when met at the Selangor International Care Summit (SICS), held at the Kuala Lumpur Convention Centre.
The government plans to implement an individual income tax exemption of RM3,000, previously only for preschool costs for children aged up to six, on childcare costs for kids up to age 12 in daycare centres or registered transit centres.
Prime Minister Datuk Seri Anwar Ibrahim, while tabling Budget 2026 in Parliament yesterday, said the exemption would take effect in the 2026 assessment year.
