Budget 2025: Singles, senior citizens to get RM600
Prime minister and finance minister Anwar Ibrahim has tabled the 2025 federal government budget, with a total allocation of RM421 billion.
This represents a RM27.2 billion increase compared with the RM393.8 billion that was allocated for 2024, and is the first time that the budget has exceeded RM400 billion.
Operational expenditure accounts for RM335 billion, or 79.6%, while RM86 billion is allocated for development expenditure.
Here are the highlights of the 2025 budget:
GLICs to invest RM120 billion domestically over the next five years. RM25 billion is allocated for next year, while projects worth RM9 billion will be developed through public-private partnerships.
Government to introduce the New Investment Incentive Framework in the third quarter of 2025. RM1 billion in investment funds will be allocated to train local talent and encourage high-value activities.
RM300 million for Khazanah’s National Fund-of-Funds to support investment in startups.
Allocation for the National Energy Transition Facility raised to RM300 million for 2025 from RM100 million this year.
The Net Energy Metering programme is extended to June 30, 2025, for the installation of photovoltaic solar panels.
RM1 billion for the green technology financing scheme.
UEM Lestra and TNB to invest RM16 billion to improve transmission and distribution networks as well as to decarbonise industrial areas.
All government agencies to sign energy performance contracts to slash electric bills by 10%.
Sales tax to be imposed on premium imported food items like salmon and avocado from May 1.
Service tax will be widened to include commercial services, including businesses like fee-based financial services.
Full implementation of the expanded SST starts May 1, 2025.
2% tax on dividend income of more than RM100,000 earned by individual shareholders. This will start from the 2025 assessment year.
Carbon tax to be imposed on steel, iron and energy industries in 2026, to encourage use of low-carbon technology.
Individual income tax relief for education and medical insurance premiums raised to RM4,000.
Tax exemption on foreign-sourced income extended until Dec 31, 2036.
Additional 50% tax deduction for employers who hire women returning to the workforce.
Targeted subsidies for RON95 petrol to be implemented mid-2025.
RM64.1 billion in total allocated to the education ministry.
RM2 billion to upgrade and maintain schools nationwide.
Construction of 44 new schools nationwide to commence next year.
RM870 million for the supplementary food programme in schools.
Nearly RM800 million for early schooling aid.
RM18 billion for the higher education ministry.
RM4 billion for scholarships, loans, and education allowances.
RM500 million provided by PTPTN for students in STEM-related courses in public universities.
Tax relief for savings in the National Education Savings Scheme (SSPN) extended by three more years.
RM20 million for UiTM to produce more engineers in the semiconductor sector.
RM50 million to teach AI-related subjects at all research universities.
RM600 million for research and development under the higher education and science, technology and innovation ministries.
RM7.5 billion allocated for TVET.
RM55 million for GiatMara and community colleges to train 10,000 children from tahfiz and pondok schools over five years.
RM120 million for MCMC to improve internet connectivity at public universities, schools, military camps and Mara institutions.
RM300 million to build two new special needs schools, one focussing exclusively on autism.
RM45.3 billion for the health ministry.
RM1.35 billion for maintaining and repairing health facilities.
Government to raise excise duty on sugary drinks by RM0.40 per litre, starting Jan 1, 2025.
RM19.5 billion for the home ministry.
RM560 million to enhance border security.
RM21.2 billion for the defence ministry.
RM5.8 billion to maintain and repair assets of the armed forces.
Allocation for the Malaysian Anti-Corruption Commission (MACC) increased to RM360 million from RM338 million.
RM20 million to strengthen the National Scam Response Centre.
Additional staffing of 100 people for the National Cyber Security Agency (Nacsa), along with an additional allocation of RM10 million.
The Ecological Fiscal Transfer fund to be raised to RM250 million to support state efforts in protecting forests and wildlife.
RM13 billion for Rahmah cash aid initiatives, compared with RM10 billion this year. This increase will benefit 60% of the adult population.
4.1 million households will get RM100 in cash aid a month, compared with 700,000 households this year. The cash will be credited into the MyKad of recipients from April 2025, and can only be spent on essential goods.
Singles will get RM600 each.
Social welfare department to get RM2.9 billion, compared with RM2.4 billion in 2024.
Senior citizen aid increased from RM500 to RM600 a month.
Low-income families to get RM250 in aid for each child aged six and under; RM200 for each child aged seven to 18. This is higher compared with RM200 and RM150, respectively, for 2024. This is however capped at RM1,000 per family.
The federal territories general aid is raised from RM100 a month to RM150, with a cap of RM500 per family.
RM300 million for an enhanced Rahmah programme to offer essential goods at reasonable prices.
RM250 million to enroll more low-income individuals in the People’s Income Initiative (IPR).
RM84 million to upgrade facilities at New Villages.
Income eligibility for disabled worker aid relaxed to RM1,700 a month.
Additional tax relief for disabled couples raised to RM6,000.
Additional tax relief for taxpayers with unmarried disabled children raised to RM8,000.
Aid for army veterans raised from RM300 to RM500.
Nearly RM900 million for 48 People’s Residency Programmes and 14 Rumah Mesra Rakyat projects.
RM12.8 billion in guarantees for over 57,000 first-time home buyers, with ongoing guarantees of RM10 billion for 20,000 buyers.
Minimum wage raised from RM1,500 to RM1,700 per month, effective Feb 1, 2025.
Enforcement of the new wage will be postponed for employers with fewer than five employees for six months (starting Aug 1, 2025).
RM200 million allocated to carry out the Progressive Wage Policy.
GiatMara to provide short-term training for 3,000 gig workers.
The EPF i-Saraan incentive is raised to 20% from 15%, subject to a cap of RM500 a year or RM5,000 in a lifetime.
Government to make it mandatory for foreign workers to contribute to EPF. This will be done in stages.
RM100 million for services like mobile clinics to cater to rural communities.
RM2.9 billion to upgrade basic infrastructure in rural areas.
RM380 million for the Orang Asli from RM330 million this year.
On-call duty allowance for medical and dental officers to be increased between RM55 and RM65, depending on the department.
Over RM1.8 billion for the construction, maintenance, and renovation of civil servants’ quarters.
RM500 in special cash aid for civil servants Grade 56 and below.
Prasarana to provide vans to shuttle students from selected train stations at the cost of 50 sen per ride.
RM2.8 billion to maintain federal roads. RM1 million earmarked for secondary, Felda and industrial roads, as well as roads damaged due to floods.
RM5.5 billion for maintenance of state roads.
RM60 million in grants for rubber smallholders.
RM100 million in incentives for smallholders to replant oil palm.
RM2.6 billion for Felda, Felcra and Risda.
Multi-tier levy to be implemented in early 2025 to reduce reliance on foreign workers.
RM200 million for Retirement Fund Incorporated (KWAP) to invest in local startups.
RM50 million in matching grants for local entrepreneurs to digitalise.
RM3.2 billion for micro loans from Tekun and BSN for small traders, including the disabled, Chinese and Bumiputera communities.
RM800 million in funds under Mara and PUNB for Bumiputera entrepreneurs, including artisans.
RM1.3 billion to empower G1-G4 contractors to undertake small and medium projects.
RM300 million to collaborate on agricultural projects with state governments to boost local food production.
RM1 billion for initiatives to control prices and supply of goods.
Almost RM550 million to enhance tourism promotions and activities for Visit Malaysia 2026.
RM110 million for improving tourist facilities, pursuing Unesco nominations for various cultural sites, and establishing ecotourism cooperation.
RM600 million to restore key cultural sites in Kuala Lumpur.
RM50 million for Dewan Bahasa dan Pustaka to collaborate with language activists in promoting language and literary activities.
RM50 million for PLKN (National Service Training programme) 3.0.
RM25 million for the Rakan Muda programme.
RM230 million for national sports development.
RM15 million for Harimau Malaya and the Under-18 and Under-13 teams.
Sabah and Sarawak will get RM6.7 billion and RM5.9 billion in development funds, respectively.
Special grants for Sabah and Sarawak doubled to RM600 million in 2025.
Over RM200 million for flights to interiors in Sabah and Sarawak.
RM150 million to mitigate flash floods.
RM600 million for the National Disaster Management Agency to prepare for flood disasters.
RM250 million allocated for slope repairs nationwide.
RM20 million for GLIC and GLC foundations to help them provide aid to flood victims.
RM2 billion for Islamic affairs.
Halal Development Corporation to merge with Matrade.
RM100 million matching grant to encourage the development of new Islamic finance solutions.
Jakim to hire 100 halal auditors.
RM200 million for the Urban Development Authority to develop affordable homes on waqf land.
RM35 million for Kafa teachers, imams and related personnel.
Allocation for the legal affairs department raised from RM194 million to RM209 million.
RM200 million for the national audit department, an increase from RM173 million.
Government to form a law reform committee to update commercial laws.
RM60 million for the judiciary to upgrade its infrastructure, including the e-Kehakiman system.
RM25 million for the Special Agency Reform Task Force (STAR).
RM27 million allocated to the Malaysia Competition Commission (MyCC) to bust cartels.
50 acres from the Bandar Malaysia project designated as Malay reserve land.
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