KUALA LUMPUR, Oct 10 (Bernama) — The MADANI Government’s commitment to balancing national development with the well-being of its people, focusing on improving the quality of life for all communities while strengthening economic resilience, remains the central theme of the 2026 Budget.
Themed Belanjawan MADANI Keempat: Belanjawan Rakyat, the RM470 billion Budget 2026 is poised to drive economic growth while ensuring the nation’s wealth is shared equitably among all Malaysians.
The 2026 Budget pools and optimizes national resources, including funds from Government-Linked Investment Companies (GLICs), Federal statutory bodies, and Minister of Finance Incorporated (MOF Inc) companies, with total public expenditure rising to RM470 billion compared to RM452 billion last year.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, when tabling the budget in the Dewan Rakyat today, said the MADANI Budget reflects the government’s choice to pursue comprehensive national rejuvenation and reform.
“Approaching three years under the MADANI administration, we have carried out bold and thorough reforms that are now beginning to yield meaningful results, particularly in raising the ceiling of economic growth and lifting the floor of public well-being,” he said.
Budget 2026 marks the fourth budget under Anwar’s MADANI Government and the first under the 13th Malaysia Plan (13MP), hence laying the foundational framework for the country’s development agenda over the next five years.
According to the Prime Minister, the overarching MADANI Economy framework is designed to serve the people, ensuring that the government has the capacity to provide essential services, create jobs, generate income, and ease the the cost of living.
“Now is the time to give back to the people. As the first budget under the 13MP, Budget 2026 sets out nine Key Commitments anchored on the three pillars of MADANI Economy framework,” he said.
The three pillars are raising the ceiling of national growth; raising the floor of people’s living standards; and driving good governance and public service reform.
Highlighting good governance as the First Commitment, Anwar stressed that the MADANI administration must build fiscal efficiency, stop leakages, and strengthen national institutions in its efforts to raise the ceiling of economic potential and improve the standard of living.
Anwar explained that, typically, additional spending for infrastructure improvements and public assistance would come with increased taxes, but the government has chosen a different path, focusing on improving governance, including targeted subsidies, without burdening the people.
“Through this approach, we have successfully implemented anti-corruption measures, curbed smuggling, and dismantled cartels that have long hindered economic progress,” he said.
Anwar stressed that under the MADANI administration, enforcement agencies have collectively recovered and collected nearly RM15.5 billion through asset seizures and penalties.
Agencies involved include the Malaysian Anti-Corruption Commission (MACC), Royal Malaysia Police (PDRM), Ministry of Domestic Trade and Cost of Living (KPDN), Customs Department, and the Malaysia Competition Commission (MyCC).
“Just imagine the RM15.5 billion in funds that were siphoned off and stolen have been recovered in just two years. These massive leakages were allowed to persist for far too long due to a lack of political will and weak enforcement,” he said.
He said that the Second Commitment is to prioritise the people’s needs, with efforts that include targeted subsidies, the Ikhtiar MADANI for the People initiative, and the MADANI Mobile Services programme, as well as focused development across all states.
“Subsidies are a privilege for Malaysians, not for foreigners, and not for large corporations. The government is targeting subsidies so that public funds reach the people who truly deserve them,” he stressed.
By floating the prices of chicken and eggs, restructuring electricity tariffs, and introducing targeted subsidies for diesel and RON95 petrol, the government has saved approximately RM15.5 billion annually, he said.
“Every ringgit saved means more funds for social welfare, more allocations to ease the cost of living, and greater investment in quality infrastructure for the rakyat,” Anwar remarked.
The Third Commitment outlined in Budget 2026 focuses on leading a high-value economy by prioritising strategic investments in high-growth sectors such as semiconductors, energy transition, and digital technology amid intensifying global competition.
Beyond easing procedures for investors, the government will strengthen the Technical and Vocational Education and Training (TVET) ecosystem as a foundation to meet the workforce demands of these high-growth industries.
The government also aims to capitalise on Visit Malaysia 2026 (VM 2026) campaign, projected to generate RM329 billion in tourism revenue, to stimulate high-value economic growth and positively impact small traders, tourism entrepreneurs, rural communities, and Malaysians nationwide.
Anwar said that the Fourth Commitment is to advancing Malaysian innovation and propelling “Made in Malaysia” products into export markets.
“Malaysia cannot remain a mere consumer; we must create and produce products and services, and lead in technology and digitalisation,” he stated.
Acknowledging geopolitical tensions, energy transitions, and threats to food security that demand preparedness, Anwar said the government will strengthen national resilience, the Fifth Commitment, by adopting more agile, bold, and forward-looking policies.
Under this commitment, the MADANI government will strengthen the agriculture sector through a range of initiatives, including infrastructure development, targeted support for farmers, fishermen, and agro-entrepreneurs.
In ensuring national readiness and safety, Anwar said the the Ministry of Defence has been allocated RM21.7 billion, while the Home Ministry will receive RM21.2 billion to enhance the country’s preparedness through key strategic measures.
Budget 2026 also places strong emphasis on narrowing regional and socio-economic gaps, with a firm commitment to inclusive and equitable development across the nation.
The Sixth Commitment to closing the gap and creating oooprtunities, includes essential infrastructure upgrades, empowerment of Bumiputera economic participation, as well as expanded opportunities for women and youth, while strengthening support for vulnerable communities, particularly the Orang Asli, Persons with Disabilities (OKU), and other marginalised groups.
In line with its humanitarian principles, the government is also extending its care to refugees, particularly young children, to ensure no one is left behind or excluded from the nation’s development narrative.
On the Seventh Commitment to ensuring the people’s livelihood, the Prime Minister reaffirmed that the welfare of the people remains the government’s highest priority, with all savings and additional revenues redirected to easing the rising cost of living.
“Today, we are witnessing the tangible results of the MADANI struggle. For the first time in our nation’s history, the hardcore poverty rate has fallen from 0.2 per cent to nearly zero, just 0.09 per cent or approximately 7,000 households nationwide,” he said.
Acknowledging that many Malaysians continue to face financial pressure, Anwar revealed an expansion of cash assistance under Budget 2026.
“All nine million recipients of the Sumbangan Tunai Rahmah (STR) will also receive the Sumbangan Asas Rahmah (SARA) of RM100 per month or RM1,200 annually, while one million STR recipients registered under eKasih will receive monthly SARA assistance of RM200, totaling RM2,400 per year,” he said.
In a special initiative, another RM100 in SARA credits will also be disbursed to 22 million Malaysians aged 18 and above in mid-February 2026, to help ease preparations for Ramadan and the Chinese New Year.
Anwar said these expanded assistance packages, totalling RM15 billion, are made possible through savings from targeted subsidies, including on diesel and RON95 fuel.
Under the Eighth Commitment to empowering public services, the Budget outlines a strong push to uplift key public sectors such as healthcare, education, public transport, and housing.
Priority allocations under the eighth commitment include efforts to upgrade hospital infrastructure, improve the welfare of frontline healthcare workers, and ensure better facilities for schools and support for underprivileged students.
As the Ninth Commitment, Budget 2026 also commits to advancing Islamic values and education.
A total of RM2.6 billion will be allocated to strengthen Islamic educational institutions, empower mosques and religious centres, and promote a deeper understanding of Islam based on the inclusive and compassionate principles of the MADANI philosophy.
In a major move, the government will also offer full loan waivers under the National Higher Education Fund Corporation (PTPTN) to 5,800 students from low-income families studying in public universities, beginning next year.
— BERNAMA