Malaysia Budget 2026 Key Highlights

Key Highlights of Malaysia's Budget 2026

For individuals and businesses

11/10/2025
Malaysia Budget 2026 Key Highlights
Is Budget 2026 the turning point Malaysia needs?

With rising living costs, global uncertainties and growing pressure to stay competitive, Malaysians are seeking clarity and confidence in the nation’s economic direction. The question is no longer whether change is coming — but how ready we are to adapt and thrive.

Tabled on 10 October 2025, Budget 2026 is the first under the 13th Malaysia Plan and the fourth MADANI Budget. It reinforces the government’s commitment to fiscal resilience, inclusive growth and long-term reform.

Anchored by the Ekonomi MADANI framework, Budget 2026 introduces targeted tax reforms, plugging of tax loopholes, green economy incentives, digital upskilling and strategic investments — designed to future-proof the economy while supporting the rakyat.

For businesses, it opens doors to innovation, sustainability and regional expansion. For individuals and households, it offers relief from cost-of-living pressures while encouraging financial adaptability and forward planning.

This newsletter highlights what’s new, what’s changing, and what it means for you.

MEMACU EKONOMI MADANI: MEMPERKASA RAKYAT

Snapshot of the latest Budget 2026 announcement


Anwar Budget 2026

2025

2026

Government Revenue

RM334.1 bil

RM343.1 bil

Government Expenditure

RM412.1 bil

RM419.2 bil

Deficit

-RM77 bil

-RM75 bil

Deficit / GDP

-3.8%

-3.5%

Key Highlights of Malaysia's Budget 2026


Profit distributions

2% tax

Profit distributions from Limited Liability Partnerships (LLP) exceeding RM100,000 annually will be subject to a 2% tax on chargeable income effective from the Year of Assessment (YA) 2026.
Man stamping approval of work

4% - 8%

Increase of stamp duty rate on the instruments of transfer of residential homes for foreigners (individuals) and foreign companies.
Employment Contract on Clipboard

RM300 - RM3,000

The wage threshold for stamp duty exemption on employment contracts will be increased from RM300 to RM3,000.

Download and explore the all key highlights of Malaysia’s Budget 2026

Our Tax experts

Our tax team of professionals are ready to assist and guide you on all aspects of your needs.
Foo Meng Huei
Meng Huei Foo
Head of TaxKuala Lumpur
Poon Yew Hoe
Yew Hoe Poon
Senior PartnerKuala Lumpur
Chong Mun Yew
Mun Yew Chong
Partner, TaxKuala Lumpur