Budget 2025 - What you need to know

KUALA LUMPUR - Following are the highlights of Budget 2025 tabled in Dewan Rakyat today by Prime Minister Datuk Seri Anwar Ibrahim.

The budget allocates a total of RM421 billion, of which RM335 billion is for operating expenditure and RM86 billion for development expenditure, excluding RM2 billion contingency savings.

Sales tax will not be imposed on basic food items used by the people.

Government will continue to bear subsidies about RM12 billion, covering 85 per cent of the population.

Government plans to implement targeted subsidies for RON95 petrol in mid-2025

RM27 million is allocated to the Malaysia Competition Commission (MyCC) to continue breaking up cartel dominance.

RM60 million is allocated to the Ministry of Domestic Trade and Cost of Living and the Royal Malaysian Customs Department to combat the leakage of public funds.

The Madani Government is honouring the agreement of previous leaders concerning the Malaysia Agreement 1963, with special attention given to Sabah and Sarawak.

Development allocation for Sabah is RM6.7 billion, Sarawak RM5.9 billion.

Starting 2025, government to double the Special Grant for Sarawak and Sabah to RM600 million.

Allocation for MACC increased to RM360 million from RM338 million.

Allocation for Parliament increased to RM180 million from RM166 million.

Over 3,000 outdated laws need to be reviewed, and the government will form a Legal Reform Task Force.

Over RM60 million allocated to upgrade judicial infrastructure, including the development of the e-Kehakiman system.

Administrative Efficiency Commitment Bill will be drafted, covering three major shifts: reducing bureaucracy, speeding up processes, and enhancing service efficiency.

RM25 million allocated for the Special Task Force on Agency Reform (STAR).

All UTCs will be equipped with a Queue Management System (QMS) to allow people to obtain their queue numbers online.

Mobile services will be further expanded with an allocation of RM100 million.

RM1 billion set aside for the Ikhtiar Sejati Madani initiative.

All vacant spaces and buildings owned by government agencies, GLICs, and GLCs will be utilised for preschool purposes.

Role of the National Scam Response Centre will be further strengthened with an allocation of RM20 million.

National Cyber Security Agency (NACSA) will be given an additional 100 staff members, along with an increased allocation of RM10 million.

RM150 million channelled to local authorities and the Department of Irrigation and Drainage to begin drainage cleaning and river dredging works to mitigate flash floods.

RM600 million allocated to the National Disaster Management Agency in preparation for flood-related disasters.

Matching grant of RM20 million provided to GLIC and GLC foundations to enhance response and aid distribution to flood victims in affected areas.

Nearly RM550 million allocated to intensify promotions and tourism activities ahead of Visit Malaysia Year 2026.

RM600 million allocated by Khazanah to preserve Kuala Lumpur as a city of culture and creativity.

RM300 million allocated for agricultural project collaborations with state governments, an increase from RM150 million this year.

RM27 million allocated as incentives for farmers and livestock breeders to boost production.

RM2.78 billion set aside as subsidies, aid, and incentives for padi farmers and fishermen, an increase from RM2.6 billion.

The ceiling rate for aid to build new or relocate fishermen's houses raised to RM84,000 for Peninsular Malaysia and RM90,000 for Sabah and Sarawak.

Additional 100 halal auditors recruited by Jakim to expedite the issuance of halal certificates.

RM130 million allocated to implement various programmes, including financing for the Indian community.

RM100 million allocated to ensure the comfort and safety of stalls and markets.

4.1 million STR household recipients to receive SARA of RM100 per month in 2025, up from 700,000 recipients this year

SARA aid to be credited to recipients' MyKAD from April 2025, with single individuals receiving RM600.

Aid for senior citizens increased to RM600 per month from RM500.

Child assistance rate for poor families at RM250 per child aged six years and under and RM200 per child aged seven to 18.

Payments for Phase 4 of STR 2024 to be distributed from Nov 7, involving an allocation of RM1.7 billion.

RM1 billion set aside to implement initiatives aimed at addressing the cost of living more broadly.

RM250 million allocated to distribute basic necessities in rural and remote areas.

Individual income tax relief for education and medical insurance premiums raised to RM4,000.

Individual income tax relief for medical expenses increased to RM10,000.

Minimum wage raised from RM1,500 to RM1,700 per month, effective Feb 1, 2025.

RM200 million allocated for Progressive Wage Policy that will benefit 50,000 workers.

RM64.1 billion allocated to Ministry of Education, compared to RM58.7 billion this year, the highest allocation in history.

RM2 billion allocated for upgrading and maintenance projects for schools nationwide.

RM100 million allocated for the Fixed Line Broadband Infrastructure Connectivity Programme in rural schools.

RM18 billion allocated to Ministry of Higher Education.

Individual tax relief for net savings in the National Education Savings Scheme (SSPN) to be extended for another three years.

RM635 million allocated to improve infrastructure, replace outdated equipment, and expand internet access in all public universities.

AI-related education expanded to all research universities, with an allocation of RM50 million.

Ministry of Health received the second-highest allocation, at RM45.3 billion.

Nearly RM900 million allocated for 48 People's Housing Residency (PRR) projects and 14 Mesra Rakyat housing projects.

Individual tax relief of up to RM7,000 on interest payments for housing loans to encourage first-time home ownership.

Basic infrastructure in villages, rural, and remote areas to be prioritised for the comfort of the people, with an allocation of nearly RM2.9 billion.

RM2.8 billion allocated for the maintenance of federal roads.

Individual income tax relief on payments for TASKA and TADIKA fees to be extended until 2027 assessment year.

Allocation for elderly welfare to be increased to RM1 billion to fund cash aid, pocket money for elderly care institutions, and activity centres.

Welfare of Orang Asli community to be prioritised under the Madani Budget, with the allocation increased to nearly RM380 million, up from RM330 million.

RM10 million allocated for the Second Chance Programme (PEKA) to reintegrate ex-convicts into society.

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