BUDGET 2025 HIGHLIGHTS (LIVE): What’s in store for next year?

Refresh page for highlights from the 2025 Budget speech tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament:

The CKD Electric Motorcycle Use Promotion Scheme’s RM2,400 rebate to be continued with a RM10 million allocation

In total, RM40 bln has been allocated for business loan facilities and financing guarantees under govt agencies

Senior citizen aid increased to RM600 a month from RM500

Singles to receive STR of RM600

PERODUA plans to produce EVs priced below RM100,000 to cater to demand

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

Sumbangan Tunai Rahmah (STR) & Sumbangan Asas Rahmah (SARA) allocations increased to RM13 billion, benefiting 9 mln recipients

The Green Technology Financing Scheme will be continued with RM1 bln allocation until 2026

Logistics firms undertaking smart logistics complex activities will be given 60 pct investment tax allowance for 5 years

The govt has approved Forest City as a duty-free island to support tourism activities and the local economy

Khazanah to launch a Mid-Tier Company Programme with RM1 bln fund to support local companies’ capacity-building efforts

Khazanah is providing RM1 bln to spearhead investments that support local semiconductor industry

Govt plans to implement a multi-tier levy mechanism early next year to reduce dependence on foreign labour

The govt allocates RM50 mln for MSME digital matching grant, digital grants for hawkers under BSN for local entrepreneurs to maintain their competitiveness

During ASEAN 2025 Chairmanship, Malaysia is committed to shaping ASEAN’s direction towards greater resilience & a people-centric approach

Revenue from the levy collection to be re-channeled to the industry players to drive their business processes towards automation and mechanisation

Govt to table the Consumer Credit Bill at an upcoming meeting

Public-Private Partnership Masterplan’s main focus is to boost private sector investment by RM78 bln, creating 900,000 job opportunities by 2030

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

Pan Borneo Highway project expected to be completed by November 2024 with Pan Borneo Sabah and Sarawak involving a combined expenditure of RM25.1 bln

The govt announces RM421 bln Budget 2025 comprising operating expenditure of RM335 bln and development expenditure of RM86 bln, excluding RM2 bln contingency savings

PM: The Madani government honours the agreement of the previous leadership in relation to MA1963. Therefore, the special attention given to Sabah and Sarawak should not be disputed.

Sarawak, Sabah to receive highest allocation among all states at RM5.9 bln and RM6.7 bln respectively

Government to establish a centralised channel at UTC to assist those in need in applying for aid across various agencies

Consideration will be given to exempt dividend income from govt funds such as EPF, unit trusts under PNB as well as dividends from overseas

Allocation for MACC in 2025 increased to RM360 million compared to RM338 million previously

The progressive broadening of the SST scope will be implemented effective May 1, 2025

The scope of the Service Tax will be broadened to cover commercial services such as fee-based financial services

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

The government will continue to bear subsidies about RM12 billion, covering 85 percent of the population

The scope of the Service Tax will be broadened to cover commercial services such as fee-based financial services

Sales tax will not be imposed on basic food items used by the people, only on non-essential goods such as imported premium goods

Govt expects revenue collection will continue to rise in 2025 to RM340 bln

Budget 2025 : Sales tax will be imposed on non-essential items such as premium imported goods like salmon and avocados

No sales tax will be imposed on essential food items consumed by the public

Fiscal deficit is forecast at 3.8 pct in 2025 compared with 4.3 pct estimated for this year

Malaysia 2024 GDP is projected to be stronger between 4.8 and 5.3 percent, compared to between 4.0 and 5.0 percent previously

The country’s economy is projected to grow strongly between 4.5 pct to 5.5 pct, supported by MADANI Budget 2025.

PM Budget 2025, among other things, addresses raising wages and incomes, and tackling the cost of living.

Datuk Seri Anwar Ibrahim begins tabling budget.