With 2026 just around the corner, let’s take a look at what the new year might have in store for us! Malaysian Prime Minister, Datuk Seri Anwar Ibrahim, has recently presented the 2026 Budget. With the theme “Belanjawan MADANI Keempat: Belanjawan Rakyat,” the budget is described as a “national rejuvenation” effort with more support to lower-income groups.
Did you know that you can claim tax relief when you visit local attractions under the 2026 Budget? Let’s follow Ouch! as we shared with you some of the Budget highlights that will benefit you, especially in terms of tax relief, cost of living, education, and healthcare.
Financial Aid and Social Welfare
Under the 2026 Budget, Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) will continue to help the low-income communities and encourage economic growth.
These aids are a cash assistance that will be automatically credited to eligible recipients’ MyKad to purchase essential products. Other financial assistance will also be provided to selected communities to help lighten the burden of the increasing cost of living.
- A one-time SARA RM100 payment will be given again to 22 million Malaysians aged 18 and above in mid-February next year.
- All nine million STR recipients will receive the SARA assistance of up to RM100 per month, or RM1,200 per year.
- One million STR recipients under the e-Kasih programme will also receive up to RM200 per month, or RM2,400 annually, under SARA.
- In conjunction with Deepavali, the RM2 billion STR Phase 4 payment (up to RM700 according to categories) for 2025, initially scheduled for November, will be brought forward and disbursed starting October 18.
- Public servants grade 56 and below will receive a special financial aid of RM500, while pensioners and veterans will get RM250, to be distributed in early March 2026.
Education
Every year, the government will allocate significant resources to the Education sector. This is part of their effort to improve our education system and ensure a more accessible education for all Malaysians.
- All 5.2 million students in government schools will receive RM150 as early schooling assistance. The total allocation is RM800 million. Starting in 2026, this aid will be channelled to parents through teachers at schools.
- All 150 thousand OKU students will receive RM150 allowance per month.
- RM120 million to be set aside annually for the National Higher Education Fund Corporation’s (Perbadanan Tabung Pengajian Tinggi Nasional, PTPTN) free education scheme, benefiting 5,800 children from poor families in public universities.
- PTPTN loan repayments for first-class honours graduates from low- and middle-income families will be exempted. This benefits about 6,000 borrowers and costs RM90 million annually.
Healthcare
With RM46.5 billion allocated to the Ministry of Health, up from RM45.3 billion this year, Malaysia is looking towards a better environment for our healthcare workers. Furthermore, a higher excise duty will be imposed on smoking products and alcohol in an effort to mitigate their consumption.
- 4,500 contract doctors have been approved and will be offered permanent positions next year.
- 833 contract nurses have been offered permanent positions this year, and another 935 graduates from Institut Latihan KKM will be offered the same next year.
- Increased excise duty for smoking products, including a 2 sen hike per cigarette stick, starting November 1, 2025.
- Excise duties hike for alcohol by 10%, starting November 1, 2025.
- Import duty and road tax exemption period for nicotine replacement products has been extended and expanded to include nicotine mist and nicotine lozenges until 31 December 2027.
- The MySalam initiative for B40 individuals will be continued in 2026 to provide subsidised hospitalisation and critical illness protection.
Tax Relief
In the 2026 Budget, the government expands the tax relief to support taxpayers in managing their financial burdens and encourages them to spend more on sectors that can benefit them, specifically, tourism and healthcare. Additionally, this initiative aims to support families with disabled children.
Here are some of the tax relief that you could take advantage of for the year 2026:
- A special RM1,000 individual income tax relief will be granted for expenses covering entrance fees to local tourist attractions and cultural programmes to encourage domestic travel.
- Individual income tax relief for expenses on screening, detection, early intervention, and continuous rehabilitation for disabled children (age 18 and below) to be raised from RM6,000 to RM10,000.
- The RM3,000 individual tax relief for childcare fees (nursery/kindergarten up to age 6) will be expanded to cover registered day care/transit centres for children up to age 12, effective for the year of assessment 2026.
- Vaccination expenses eligible for individual income tax relief to be expanded to cover all types of vaccines registered and approved by the Ministry of Health.
- The existing RM3,000 tax relief for life insurance/takaful premiums (self and spouse) will be extended to cover children.
- Full stamp duty exemption on small-value insurance policies or takaful certificates purchased by individuals and micro, small and medium enterprises (MSMEs) is extended for another three years until 2028. Similar extension given to full stamp duty exemption on insurance policies and takaful certificates for Perlindungan Tenang products.
Click here to see more details on 2026 Budget.
Budget 2026: Beyond Financial Plan
The 2026 Budget, as presented by Datuk Seri Anwar Ibrahim, is more than just a financial plan; it serves as a historical compass guiding the nation towards rejuvenation in the upcoming era. This financial planning sets the focus on addressing severe poverty dan improving the welfare of the people through various initiatives, including the allocation of SARA and STR, as well as the implementation of targeted subsidies. As Malaysians, who will benefit from these measures, let us put in our effort and work together to raise our life quality and standard by utilising the opportunities under the 2026 Budget.
Disclaimer: The information in our blog articles and provided by our brand ambassadors/KOLs is for general insights only and not legally binding. We strive for accuracy but cannot guarantee the information’s completeness or reliability. For legal matters, consult official documents or contact an authorised Ouch! Representative.