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Prime Minister Datuk Seri Anwar Ibrahim has announced a total of RM419.2 billion in allocations for Budget 2026; RM1.8 billion less than last tabled budget. Budget 2026 is Anwar’s fourth budget since becoming prime minister in November 2022.
Here are the highlights concerning the rakyat:
Cash Handout and Financial Aid
22 million Malaysians aged 18 and above to receive RM100 SARA aid. The payment will be distributed in mid-February, in time for Ramadan preparations and the Chinese New Year celebrations.
In conjunction with the Deepavali celebration, Phase 4 of the STR 2025 payment will be brought forward and distributed starting 18 October. It was originally scheduled for November and worth RM2 billion.
There’s also a 50% toll disocunt for two days for Deepavali.
The government will support 5,000 underprivileged single mothers who need legal assistance for court cases such as divorce and child custody matters.
The government will continue covering the cost of obtaining a Class B2 motorcycle license to support underprivileged youths joining the delivery sector.
EPF contributors may use their Sejahtera Account (Account 2) savings to subscribe to basic medical and health insurance or takaful (MHIT) plan.
Tax exemptions
A special RM1,000 individual income tax relief is available for expenses on entrance fees, tourist attractions, and cultural programmes to encourage domestic travel.
There are plans to extend the individual income tax relief of RM3,000 for expenses on childcare or preschool fees for children up to six years old to cover registered daycare centres or transit centres for children up to 12 years old, effective from the year of assessment 2026.
Student loans
Travel restrictions will be imposed on borrowers who are financially able and working abroad, but have been neglecting their loan repayments.
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