Business Today
11 October 2025
Budget 2026: Top 10 Things Businesses Need To Know
Budget 2026, the first under the 13th Malaysia Plan that was presented by Prime Minister Dato’ Sri Anwar Ibrahim, lays out targeted measures to strengthen entrepreneurship, digitalisation, sustainability and sector-specific growth. Key initiatives for businesses include:
RM50 Billion Financing & Guarantees for Entrepreneurs
The government will provide RM50 billion in loans and guarantees to support local businesses, from micro enterprises to high-value sectors. This includes raising the guarantee ceiling under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) from RM20 billion to RM30 billion. RM50 million is dedicated to cooperatives to help them scale operations and improve competitiveness.
Bumiputera Businesses Get a Boost
Budget 2026 allocates RM40 million to accelerate the growth of high-potential Bumiputera companies. Education and skill-building initiatives receive RM6 billion through MARA, Yayasan Peneraju and UiTM. RM2.4 billion is set aside for Bumiputera G1–G4 contractors with an additional RM10 billion in government guarantees via SJPP. SME Bank’s Jaguh Serantau programme will provide RM200 million in loans for export-driven Bumiputera SMEs, while MARA’s Entrepreneur Scaling Programme contributes RM100 million for high-value startups. CIDB and VentureTECH will channel RM10 million and RM105 million respectively to boost competitiveness and tech equity.
Support for Micro and Small Enterprises
BSN and TEKUN Nasional will receive RM2.5 billion to offer low-interest financing, business recovery programmes and digitalisation grants targeting micro and small businesses, ensuring they can modernise operations and adapt to evolving market conditions.
RM1 Billion for Automation & Digitalisation
Development Finance Institutions, including Bank Pembangunan, SME Bank and EXIM Bank, will allocate RM1 billion in grants and incentives to help SMEs adopt robotics, digital solutions and process automation. The initiative targets manufacturing, logistics and services sectors to boost productivity and competitiveness.
Carbon Tax Introduced
Malaysia will implement a staged Carbon Tax in 2026, initially covering the iron, steel and energy sectors. The measure will align with the National Carbon Market Policy and the forthcoming Climate Change Act to guide compliance and stimulate investment in cleaner production technologies.
Transport Sector Incentives
Full excise duty and sales tax exemptions are extended for taxi and private hire vehicle owners purchasing new Proton and Perodua models. HRD Corp will allocate RM10 million for training and upskilling registered taxi drivers, covering course fees and training allowances to improve safety and professionalism.
Tourism & Culture Gets RM700 Million Boost
Visit Malaysia Year 2026 will receive RM500 million. Additional allocations include RM60 million for promotional activities and cultural events, RM50 million for supporting artisans and heritage entrepreneurs, RM50 million in matching grants to attract international and charter flights, RM25 million for tourism infrastructure and UNESCO heritage preservation and RM20 million for health tourism programmes. RM2.3 billion is earmarked for airport upgrades at Penang, Kota Kinabalu, Tawau and Miri, scheduled for completion by 2028. Tax incentives include RM1,000 rebates for Malaysians visiting local attractions and 100% income tax exemption for international-level events.
Public & Private Sector Investment Drives
Federal spending includes RM30 billion in GLIC investments, RM10 billion in public-private partnerships and RM10.8 billion from statutory bodies and MKD companies to fund strategic development projects across the country.
Microfinancing for Retirees & Grassroots Entrepreneurs
KWAP will allocate RM20 million in microfinancing for retirees to support community entrepreneurship, complementing SME and Bumiputera initiatives.
Focus on Inclusive & Future-Ready Growth
Across sectors, Budget 2026 highlights digitalisation, industrial competitiveness, entrepreneurship and sustainability, reflecting a holistic approach to economic resilience, shared prosperity and preparation for future global challenges.
(Web Source: https://www.businesstoday.com.my/2025/10/10/budget-2026-top-10-things-businesses-need-to-know/)