Budget 2026 set for Oct 10 tabling with 'people-first' focus
In the lead-up, the ministry will coordinate extensive public and stakeholder engagements to gather input in line with the priorities of the Madani Economy.
"The government is committed to incorporating the feedback received through these engagements into Budget 2026 — particularly those that directly contribute to economic progress, the wellbeing of the rakyat, and improved governance," the MoF said in its pre-budget statement.
Budget 2026 will be the fourth in a series of Madani budgets aimed at realising the vision of the Madani Economy — restoring fiscal resilience, strengthening the country's economic foundations, and uplifting the dignity and livelihoods of the people.
As with previous Madani budgets, it will continue to deliver on three key pillars: raising the ceiling of national growth, raising the floor of living standards, and driving reform, particularly in governance. It will also mark the first budget under the 13th Malaysia Plan (13MP) 2026–2030.
"Amid a global environment marked by uncertainty and intensifying competition, Budget 2026 will maintain its focus on Malaysia's long-term economic reform agenda while addressing short-term challenges to sustain growth momentum and safeguard economic resilience.
"At the same time, efforts will be intensified to enhance the wellbeing of the rakyat through more targeted, outcome-driven assistance to improve quality of life," the ministry said.
It added that the key focus in 2026 would continue to build on the three pillars of the Madani Economy, while also laying a strong foundation for the first year of the 13MP.
Budget 2026 will emphasise reform and good governance, boosting national economic growth, and improving living standards for all.
The government reaffirmed that the budget will be formulated through a bottom-up, people-centred approach that places community needs at the heart of public policy.
To institutionalise this approach further, the government will actively seek views from the public, businesses and key stakeholders to ensure national policies reflect realities on the ground.
Feedback, suggestions and proposals for Budget 2026 can be submitted via the Belanjawan 2026 portal at https://belanjawan.mof.gov.my.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
42 minutes ago
- New Straits Times
Second day of tax grievances: Guan Eng joins Wee in flagging refund delays
KUALA LUMPUR: The issue of delayed tax refunds was raised for the second consecutive day in Parliament, with former finance minister Lim Guan Eng highlighting refund backlogs and unreasonable Inland Revenue Board (LHDN) assessments as key concerns for taxpayers. Lim, who is the Bagan member of parliament, said taxpayers were questioning why they had not received their refunds within the stipulated 30-day period. "Some companies have even reported having to wait more than three years to get their tax refunds. What is the total amount of outstanding tax overpayments?" he asked. Lim added that taxpayers often complained of being pressured by unreasonable assessments issued by the LHDN. He also raised concerns over enforcement of transfer pricing regulations, saying unclear procedures had led to confusion, particularly over recent requirements for companies to impose interest on funds transferred to subsidiaries, which are then deemed taxable income. On Tuesday, Datuk Seri Dr Wee Ka Siong called for the LHDN to be restructured as an independent statutory body that reports to Parliament, rather than remaining under the Finance Ministry. Wee, the MP for Ayer Hitam, said LHDN must not be seen as a political tool and should not follow the dictates of the executive, regardless of who is in power. He also highlighted growing frustration among small and medium enterprises (SMEs), citing an increase in complaints over delayed tax refunds. "This creates the perception that the government is borrowing the people's money without interest," Wee said, pointing to a case where a taxpayer who applied for a RM13,000 refund was offered only RM650, with the balance to be paid over four years. Meanwhile, Lim called for the establishment of a special Taxpayer Tribunal to protect individuals and small and medium-sized enterprises (SMEs) from alleged unfair treatment by the LHDN. There was growing complaints from taxpayers claiming they were pressured by questionable tax assessments and enforcement actions, including bank accounts being frozen without clear justification, he said. He said that while LHDN's efforts to boost government revenue were commendable, these must be balanced with fair and reasonable enforcement. "While we appreciate the board's efforts to increase national revenue, it must be balanced with fair and reasonable treatment to avoid arbitrary actions," he said when debating the 13th Malaysia Plan in the Dewan Rakyat today. "I propose the formation of a special taxpayer tribunal to protect individuals and SMEs from feeling that they are being treated unfairly, victimised, or subjected to double standards in enforcement," Lim added.
Barnama
43 minutes ago
- Barnama
Budget 2026 To Reinforce Reform Agenda In Healthcare, Education And Labour Market
KUALA LUMPUR, Aug 8 (Bernama) -- Budget 2026 will address key findings by the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), with a focus on tackling the issue of rising healthcare costs. The Ministry of Finance (MOF), in its Pre-Budget 2026 statement, said that the healthcare reform initiative aims to strengthen health security by ensuring access to affordable, equitable, and high-quality care. 'Key focus areas include enhancing protection for vulnerable groups, expanding access to affordable medicines, strengthening the primary care system in rural areas, digitalising healthcare services through telemedicine and electronic records, and preparing the system for future crises and an ageing population,' it said. Additionally, Budget 2026 will support the implementation of the education reform agenda under the 13th Malaysia Plan (13MP), with a clear objective of developing talent equipped to meet the needs of Malaysia's high-growth, high-value (HGHV) sectors. According to the ministry, the government is committed to improving educational outcomes across all segments of society, regardless of socio-economic background, while also strengthening students' foundational learning. It added that the government will continue efforts to strengthen foundational education support to bridge the achievement gap, particularly for vulnerable and underserved communities. Science, Technology, Engineering and Mathematics (STEM) education, Technical and Vocational Education and Training (TVET), and lifelong learning will also be strengthened, in line with the national workforce strategy and the demands of future high-growth sectors. The MOF also said that labour market reforms will focus on enhancing workforce marketability and expanding access to higher-income opportunities. In addition to implementing the minimum wage, these efforts aim to promote sustainable wage growth, to improve living standards and strengthen household resilience in the long term.
Focus Malaysia
44 minutes ago
- Focus Malaysia
Uniform tax on all tobacco, nicotine products may do more harm than good, says group
AS THE government considers raising tobacco taxes in Budget 2026, the Consumer Choice Centre has called for policymakers to adopt a more effective and science-based approach. It said risk-based taxation, where nicotine products are taxed according to their level of health risk, offers a practical solution that supports public health while avoiding unintended consequences such as the growth of the black market or barriers to harm reduction. According to its country associate Tarmizi Anuwar, while reducing non-communicable diseases is recommendable, a uniform tax on all tobacco and nicotine products may do more harm than good. 'We support the government's health goals, but applying the same tax to cigarettes, vaping products, and other reduced-risk alternatives is counterproductive,' he reckoned. 'Taxation should reflect relative harm so smokers are encouraged to switch to safer products.' Tarmizi said the nation already faces a significant challenge from the illicit tobacco trade. High excise rates on cigarettes have long pushed many consumers, particularly those in lower income groups, toward cheaper, unregulated products. Between 2002 and 2010, legal cigarette sales in Malaysia fell by 31%, from 19.5 billion to 13.5 billion sticks. During the same period, illicit consumption surged to 8.8 billion, pushing the black market share from 21% to 39% of total sales. Tarmizi further noted that Malaysia can learn from both successful and unsuccessful global examples in handling this issue. 'The experiences of Australia, Sweden, and New Zealand show that the structure of taxation matters. We get better public health outcomes if we design a tax policy that supports switching,' he opined. 'If we over-rely on punitive measures, we risk pushing people into the black market and losing control over the system.' At the regional level, policy inconsistencies are already impacting. The ban on e-vaporisers in Singapore and Thailand has contributed to cross-border smuggling of vaping products from Malaysia, one of the largest producers of e-vapor devices in the world. Similarly, significant price differences between countries such as Malaysia and Indonesia create financial incentives for illicit trade that undermine national regulation and tax collection. 'Malaysia should not repeat these mistakes. We need to build a system based on science that protects consumers and does not unintentionally support criminal networks. Risk-based taxation is not about removing regulation. It is about improving it,' he said. In this matter, the Consumer Choice Centre recommends that the government implement a tiered taxation model under Budget 2026 whereby products such as vapes, heated tobacco, and nicotine pouches which have lower risk should have a lower tax than combustible tobacco products. Tarmizi said this structure would encourage adult smokers to make healthier choices without compromising public revenue or regulatory control. Furthermore, as Malaysia seeks to modernise its health system and address the burden of smoking-related diseases, risk-based taxation offers a responsible and forward-looking path. 'It aligns with international best practices while responding to local challenges,' Tarmizi said. 'Taxation should support public health, not undermine it. By adopting a balanced and science-driven approach, Malaysia can lead the way in creating policies that protect both consumers and the integrity of our public institutions.' ‒ Aug 8, 2025
