On 10 October 2025, YAB Dato’ Seri Anwar Ibrahim tabled Budget 2026 with measures that reinforce economic resilience, expand targeted tax incentives, strengthen social welfare & healthcare, accelerate infrastructure development, and advance sustainability—in line with the key focus areas outlined above.

1. MSME, Bumiputera & Subsidies:

Targeted subsidies
Support for Bumiputera entrepreneurs
Entrepreneur development programs

2. ESG & SDG (Environmental, Social, Governance & Sustainable Development Goals):

Green energy projects
Sustainable finance & carbon
Environmental & social initiatives

3. Digital, IT, AI & Technology:

Digitalization of services
AI & innovation (R&D/C&I)
Digital adoption incentives
R&D commercialization

4. Islamic Finance:

Islamic finance ecosystem
Social finance & waqf
Halal industry & financing

5. Borneo (Sabah & Sarawak):

Federal funds & grants
Infrastructure & utilities
Roads & highways
Digital & rural economy

6. TVET & Higher Education:

Budget & policy
Training & upskilling
Facilities & infrastructure

7. Women Empowerment:

Corporate leadership
Support for working mothers
Women entrepreneurship & microcredit
Welfare & legal support

The 2026 Budget aims to balance economic recovery with future resilience, guiding Malaysia toward sustainable growth and development.

Want to know more? Explore the full breakdown of the Malaysia 2026 Budget highlights in our Tax2share Bulletin.

to access the details and stay ahead of the latest tax updates!