{"id":93060,"date":"2024-10-18T20:17:26","date_gmt":"2024-10-18T12:17:26","guid":{"rendered":"https:\/\/iqiglobal.com\/blog\/?p=93060"},"modified":"2026-01-09T15:59:42","modified_gmt":"2026-01-09T07:59:42","slug":"malaysia-budget-2025-highlights","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/malaysia-budget-2025-highlights\/","title":{"rendered":"Budget 2025 Malaysia: With 421 Billion Ringgit, These Are Government\u2019s Plan To Stabilise Economy"},"content":{"rendered":"\n

Version: BM<\/mark><\/a>, CN<\/mark><\/a><\/em><\/strong><\/p>\n\n\n\n

\n\n\n\n
With the theme “Ekonomi MADANI Negara Makmur, Rakyat Sejahtera,” the Budget 2025 Malaysia<\/strong> presented by Prime Minister Datuk Seri Anwar Ibrahim<\/strong> on October 18th, 2024 at 4pm<\/strong>, has elicited a diverse range of reactions from the Malaysian public.<\/p>\n\n\n\n
Anwar, who is also a Finance Minister, laid the spotlight on his commitment to tackle inflation and improve wages<\/strong>. <\/p>\n\n\n\n
The budget specifies a total allocation of RM 421 billion<\/strong>, comprising RM 82.1 billion for education<\/strong>, RM 45.3 billion for health<\/strong>, and the remaining RM 21.2 billion<\/strong> designated for defence<\/strong>. <\/p>\n\n\n\n
This marks the largest budget<\/strong> in Malaysia’s history.<\/p>\n\n\n\n
The tabling was focused on three key areas, which reflect the respective theme: Raise the Ceiling<\/strong>, Raise the Floor<\/strong> and Good Governance and Public Sector<\/strong>. <\/p>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
So, what does the future hold for the people of Malaysia?<\/p>\n\n\n\n
Budget 2025 Malaysia: <\/h2>
Real Estate Focuses<\/a><\/li>
Bantuan Rakyat<\/a><\/li>
Other Highlights<\/a><\/li><\/ul><\/div>\n\n\n\n
\n\n\n\n
Real Estate Focuses<\/strong> <\/h2>\n\n\n\nAffordable Housing<\/strong><\/h3>\n\n\n\nIt’s looking good for the real estate focuses<\/mark><\/a>! A total of RM900 million<\/strong> is allocated for 48 People’s Housing Program<\/strong> projects and 14 Friendly People’s Housing<\/strong> projects.<\/p>\n\n\n\n
This includes two new housing projects in Port Dickson<\/strong> and Seberang Perai Tengah<\/strong>. By the end of 2025, 30 of these projects are expected to be finished, helping around 17,500 new residents<\/strong>.<\/p>\n\n\n\n
PPR<\/strong><\/h3>\n\n\n\n
A part of the Budget 2025, the government highlighted will be focused on supporting low-income individuals under the People’s Housing Programme (PPR)<\/strong>. <\/p>\n\n\n\n
In line with this commitment, the government plans to invest RM200 million<\/strong> to improve old elevators in PPR housing and RM100 million<\/strong> to create 48 Madani Parks<\/strong>.<\/p>\n\n\n
\n
$\"People's$ <\/figure>\n<\/div>\n\n\n
Home Loan Agreement<\/strong><\/h3>\n\n\n\n
For loan agreement, the government provides personal income tax<\/strong> relief of up to RM7,000<\/strong> for mortgage interest payments.<\/p>\n\n\n\n
Apart from that, people who finalise a home loan agreement from January 1, 2025<\/strong>, to December 31, 2027<\/strong>, could qualify for this tax relief.<\/p>\n\n\n\n
There is also a tax relief of up to RM7,000<\/strong> available for purchasing residential<\/mark><\/a> properties valued at up to RM500,000<\/strong>.<\/p>\n\n\n\n
Housing Development<\/strong><\/h3>\n\n\n\n
Good news! The government has revealed a budget of RM200 million<\/strong> for the development of affordable housing <\/strong>for the people on waqf land by UDA<\/strong>.<\/p>\n\n\n\n
Additionally, through collaboration between PNB and PHB<\/strong>, there will be initiatives for affordable housing<\/strong>, student accommodations<\/strong>, and commercial development<\/strong>.<\/p>\n\n\n\n
Sejati MADANI<\/strong><\/h3>\n\n\n\n
For Budget 2025, the government also plans to set aside RM1 billion<\/strong> next year to support the Sejati MADANI Community Prosperity Project<\/strong>.<\/p>\n\n\n\n
All States Development <\/strong><\/h3>\n\n\n\n
For Sabah<\/strong> and Sarawak<\/strong>, the MADANI government aims to reduce the development gap<\/strong> of development and comfortable living between states, particularly in important areas like roads<\/strong>, electricity<\/strong>, and clean water<\/strong>.<\/p>\n\n\n\n
For this, the total public investment for development in 2025<\/strong> is expected to be at RM120 billion<\/strong>.<\/p>\n\n\n
\n
$\"Forest$ <\/figure>\n<\/div>\n\n\n
Forest City<\/strong><\/h3>\n\n\n\n
A new financial entity will be established by the government to fund the construction and redevelopment of Forest City<\/strong>, Johor Bahru.<\/p>\n\n\n\n
This initiative aims to enhance the local economy and create a substantial number of job opportunities<\/strong>, especially in the duty-free zone<\/strong>.<\/p>\n\n\n\n
At the same time, the National Energy Transition Roadmap (NETR)<\/strong> project will move into the implementation phase, including the Kenyir Hybrid Hydro Floating Solar Farm<\/strong> and a green hydrogen hub<\/strong> in Terengganu.<\/p>\n\n\n
\n
$\"Bantuan$ <\/figure>\n<\/div>\n\n\n
Bantuan Rakyat <\/strong><\/h2>\n\n\n\n
Ikhtiar Sejati Madani Initiative <\/strong><\/h3>\n\n\n\n
For Budget 2025, the government has set up a significant initiative for Bantuan Rakyat. <\/p>\n\n\n\n
A total of RM1 billion<\/strong> has been designated for the Ikhtiar Sejati Madani<\/strong> initiative, which includes:<\/p>\n\n\n\n
\n
RM600 million<\/strong> aimed at enhancing the rural economy in villages<\/strong>, towns, remote regions, and Orang Asli communities<\/strong>.<\/li>\n\n\n\n
RM200 million<\/strong> to broaden the Kampung Angkat Madani<\/strong> initiatives in 200 villages. <\/li>\n\n\n\n
RM100 million<\/strong> allocated for public universities to participate in the Kampung Angkat Madani<\/strong> programme, with TVET institutions offering services like home repairs and electrical installations to local residents.<\/li>\n\n\n\n
RM100 million <\/strong>dedicated to empowering PPR communities<\/strong> nationwide through a range of socioeconomic initiatives.<\/li>\n<\/ul>\n\n\n\n
STR<\/strong><\/h3>\n\n\n\n
The budget for the Compassionate Assistance Program (STR)<\/strong> in 2025 will rise to RM13 billion<\/strong>, helping around 9 million people (60% of the adult<\/strong> population).<\/p>\n\n\n\n
B40 <\/strong><\/h3>\n\n\n\n
To continue the yearly tradition, the monthly welfare aid<\/strong> for the poorest elderly citizens<\/strong> has been increased to RM600<\/strong> from RM500 in 2024.<\/p>\n\n\n\n
Child Assistance Rate for Low-Income Families:<\/p>\n\n\n\n
\n
Ages 6 and below – RM250 <\/strong><\/li>\n\n\n\n
Ages 7 to 18 – RM200 <\/strong><\/li>\n\n\n\n
*maximum rate of RM1,000<\/strong> per family.<\/li>\n<\/ul>\n\n\n\n
Youth<\/strong> <\/h3>\n\n\n\n
For young individuals<\/strong> looking to buy their first home, the RM5 billion<\/strong> Step Up Financing Scheme (1-Skim Step Up Financing)<\/strong> has been introduced by the government as a means to aid in helping those who are struggling. <\/p>\n\n\n\n
For unmarried individuals<\/strong>, they are eligible for a monthly compassionate allowance of RM600<\/strong>.<\/p>\n\n\n\n
Basic Salary Rate <\/strong><\/h3>\n\n\n\n
The minimum wage will be raised to RM1,700<\/strong> from RM1,500, starting on February 1, 2025<\/strong>. <\/p>\n\n\n\n
For employers with fewer than 5 employees, the enforcement of the RM1,700 minimum wage will take effect on August 1, 2025<\/strong>, allowing a 6-month grace period<\/strong>.<\/p>\n\n\n
\n
$\"EV$ <\/figure>\n<\/div>\n\n\n
EV Subsidy <\/strong><\/h3>\n\n\n\n
The government is offering up to RM2,400<\/strong> in rebates for the purchase of new locally assembled electric vehicles<\/strong> (EV), which is supported by a RM10 million allocation<\/strong>.<\/p>\n\n\n\n
Public Transport<\/strong><\/h3>\n\n\n\n
Prasarana<\/strong> and KTMB <\/strong>have acquired 250 electric buses<\/strong> and 12 passenger<\/strong> train carriages to improve public transport. <\/p>\n\n\n\n
And the My50 Monthly Pass<\/strong> will continue, benefiting 180,000 users<\/strong> of buses and trains in the Klang Valley.<\/p>\n\n\n
\n
$\"My50$ <\/figure>\n<\/div>\n\n\n
Other Highlights<\/strong><\/h2>\n\n\n\n
Education<\/strong><\/h3>\n\n\n\n
A welcoming news for students studying STEM subjects<\/strong> at public universities; the National Higher Education Fund Corporation (PTPTN)<\/strong>, the government has set aside RM500 million<\/strong> for special education funding.<\/p>\n\n\n\n
Regarding educational subsidies, the government plans to impose higher tuition fees<\/strong> on students from the top 15% income bracket<\/strong> who attend government boarding schools and public universities.<\/p>\n\n\n\n
To encourage higher education savings, the government will extend the personal income tax relief on SSPN<\/strong> net deposits for an additional three years.<\/p>\n\n\n\n
Meanwhile, to create high-paying jobs in the AI sector<\/strong>, special tax incentives are offered to private higher education institutions<\/strong> that develop new courses in areas such as digital technology<\/strong>, AI<\/strong>, robotics<\/strong>, IoT<\/strong>, data science<\/strong>, FinTech<\/strong>, and sustainable technology<\/strong>. <\/p>\n\n\n\n
Lastly, RM100 million<\/strong> has been set aside for public universities to carry out the MADANI Adopted Village<\/strong> program.<\/p>\n\n\n
\n
$\"Education\"$ <\/figure>\n<\/div>\n\n\n
MyDigital ID<\/strong><\/h3>\n\n\n\n
MyDigital ID<\/strong> is a centralised government application that brings together various agencies such as Padu<\/strong>, JPJ<\/strong>, and LHDN<\/strong>. <\/p>\n\n\n\n
This application will provide a complete platform for the citizens of Malaysia, helping them use the app to streamline access to government services<\/strong>. <\/p>\n\n\n\n
On the other hand, starting April 2025<\/strong>, financial aid will be automatically deposited<\/strong> into MyKad<\/strong> cards, enabling beneficiaries to purchase daily necessities at over 600 supermarkets<\/strong> and grocery stores<\/strong> nationwide.<\/p>\n\n\n\n
This initiative is part of the government’s effort to transition into the digital era<\/strong>.<\/p>\n\n\n
\n
$\"Health\"$ <\/figure>\n<\/div>\n\n\n
Health<\/strong><\/h3>\n\n\n\n
As for health, the Budget 2025 announced the personal income tax deduction<\/strong> for tuition fees and medical insurance premiums has been raised to RM4,000<\/strong>. Other than that, <\/p>\n\n\n\n
\n
RM45.3 billion<\/strong> allocated to the Ministry of Health<\/strong> to provide quality and accessible healthcare facilities<\/strong>.<\/li>\n\n\n\n
RM1.35 billion<\/strong> designated for the maintenance of healthcare infrastructure<\/strong>, including essential facilities like outdated hospital restrooms<\/strong>.<\/li>\n\n\n\n
RM300 million<\/strong> allocated for upgrading underperforming clinics<\/strong>.<\/li>\n\n\n\n
Parents can fully deduct medical examination<\/strong> fees, including vaccinations<\/strong>, from their taxes. This also covers expenses related to grandparents.<\/li>\n<\/ul>\n\n\n\n
New Taxes<\/strong><\/h3>\n\n\n\n
\n
Sales Tax:<\/strong> Effective May 1, this will apply only to imported goods, excluding basic food items for Malaysians. However, in the future, uncommon foods<\/strong> such as salmon and avocado will be subject to taxation.<\/li>\n\n\n\n
Like Services:<\/strong> Now includes a broader range of commercial services, covering businesses that offer fee-based financial services. <\/li>\n\n\n\n
Dividend Tax:<\/strong> A 2% tax will be imposed on dividend income over RM100,000 received by individual shareholders, starting from 2025. <\/li>\n\n\n\n
Carbon Tax: <\/strong>The government plans to implement a carbon tax in 2026. This tax will target the steel and energy industries to encourage the use of low-carbon technologies and support green research and development initiatives.<\/li>\n\n\n\n
Sugary Tax: <\/strong>The government has announced a sugar-sweetened beverage tax that will take effect on January 1, 2025. This tax will impose a levy of 40 cents for every liter of sweetened drink.<\/li>\n\n\n\n
However, dividend income from investments such as EPF<\/strong>, unit trusts under PNB<\/strong>, and foreign dividend income is exempt from tax<\/strong>.<\/li>\n<\/ul>\n\n\n
\n
$\"New$ <\/figure>\n<\/div>\n\n\n
Entrepreneur<\/strong><\/h3>\n\n\n\n
Business owners can access RM200 million<\/strong> from Retirement Fund Incorporated (KWAP)<\/strong> to invest in local startups.<\/p>\n\n\n\n
Additionally, Malaysian companies are encouraged to acquire ICT and computer software<\/strong> to facilitate the transition to e-invoices<\/strong>. <\/p>\n\n\n\n
The government has allowed a two-year timeframe<\/strong> for business owners to equip themselves with the necessary tools for the complete rollout of e-invoices.<\/p>\n\n\n\n
The government also mentioned that the Public-Private Partnership Initiative (PIKAS)<\/strong> is designed to enhance collaboration between the public and private sectors, aiming to attract RM780 billion<\/strong> in private investments and create 900,000 jobs by 2030<\/strong>. <\/p>\n\n\n\n
Furthermore, the government is enhancing the functions of SMEs and has allocated RM50 million<\/strong> in digital grants for local entrepreneurs to remain competitive in the market.<\/p>\n\n\n\n
For women entrepreneurs<\/strong>, the SME Bank, in collaboration with the People’s Bank and the People’s Trust Bureau, has set aside RM470 million<\/strong> in loans to support their ventures.<\/p>\n\n\n
\n
$\"budget$ <\/figure>\n<\/div>\n\n\n
In conclusion, even though the goal for Budget 2025 Malaysia<\/strong> is to tackle inflation and improve wages<\/strong>, with the addition of five<\/strong> new taxes<\/strong> and and numbers of new ‘bantuan rakyat<\/strong>‘ initiative, can Malaysia finally tackle inflation?<\/strong><\/p>\n\n\n\n
Or will it inadvertently create an additional challenge<\/strong> for Malaysians facing an already high cost of living?<\/p>\n\n\n\n
On the brighter side, with the introduction of MyDigitalD<\/strong> and four development projects<\/strong>, I think we can all agree that the 2025 Budget will mark a pivotal moment for the nation’s economic development<\/strong>, especially in the real estate industry<\/strong>.<\/p>\n\n\n\n
We are eager to see how the Budget 2025 could positively affect the economic, real estate sector and other important industries, leading to progress and growth of the Malaysia state. <\/p>\n\n\n\n
\n\n\n\n
Ready to level up your career? Join IQI and propel your success in real estate! Don’t miss out on fulfilling your dreams and become a real estate agent now!<\/span><\/strong><\/p>\n\n\n\n
\n\t\t\t\t\t\t