Budget 2026 – Lots of goodies and GDP projected to grow by…?

Budget 2026 – Lots of goodies and GDP projected to grow by…?

Let’s just look at things where the people directly benefits or related to property market, okay?

Property Related

#1 – Over RM1.5 billion to build and upgrade facilities for uniformed agencies. – Comment: If money is spent to upgrade facilities, it meant that contractors will get job to do, get paid, hire people and the people get paid and well, the multiplier effect happens. Definitely a good thing indeed.

#2 – Public Sector Home Financing Board (LPPSA) financing limit raised to RM1 million to match salary and property price increases. Comment: I am not too sure if RM1 million should be the aim for everyone but the higher the better I guess.

#3 – A special 10% tax deduction (capped at RM10 million) will be offered for expenses related to converting commercial buildings into residences. Comment: Was, this one I want to see how many actually does this. Good to increase the supply of properties.

#4 – Flat stamp duty of 4%-8% to be imposed on property transfers involving non-citizens and foreign companies, except permanent residents.  Comment: I do wonder what’s the purpose behind this. Maybe encourage transfers and thus the government earns more stamp duty earlier than later? There’s that FOMO effect if this is just for one year.

#5 – Full stamp duty exemption on first-home purchases up to RM500,000 extended till Dec 31, 2027.  Comment: First-Home buyers, better take this up lah. RM500,000 limit is pretty high actually. It does NOT need to be a landed property yeah. Buy and then stop renting so that the money belongs to you and not just the homeowner…

#6 – All government hospitals and clinics will undergo maintenance and repairs with an allocation of RM1.2 billion.

#7 – RM3.3 billion set aside for basic rural infrastructure projects, including RM2.5 billion for rural and village roads, RM700 million for supply of clean water and electricity, and RM90 million for streetlights.

#8 – RM3 billion to be spent to replace over 820km of ageing pipes across Johor, Melaka, Negeri Sembilan, Kelantan, Pahang and Selangor under the National Non-Revenue Water programme.

#9 – DBKL is allocating RM500 million for urban improvements: RM200 mil to redevelop old hawker facilities (centres, markets, food courts), and RM300 mil for maintenance of buildings, wiring, and road facilities within People’s Housing Programme (PPR) schemes.

#10 – Airport upgrades in Penang, Sabah, and Sarawak get RM2.3 billion, to be completed by 2028

People Benefits (except one line…)

#1 – The eligible age for i-Suri is increased to 60 years in line with the minimum retirement age.

#2 – Promote youth entrepreneurship by providing:

• RM150 million financing from Bank Simpanan Nasional for entrepreneurs aged 30 and below.
• RM12 million from SME Corp’s Tunas Usahawan Belia Bumiputera programme for training and business support.
• Support for low-income youth by covering fees for B2 motorcycle licences to help them join delivery services.

#3 – All Cabinet ministers will continue to take a 20% pay cut, which was first announced in December 2022. – Comment: Frankly, I do not like this lah. Let them earn what’s already theirs. Just need to ensure they do work properly lah. That’s more important. Else, lower pay means nothing actually.

#4 – Cost of living aid for 4,000 Jabatan Kemajuan Masyarakat contract retirees raised from RM300 to RM500 per month.

#5 – Public servants grade 56 and below will receive a special financial aid of RM500, while pensioners and veterans (both pensioned and non-pensioned) will get RM250, distributed early March 2026  Comment: This is okay, I am very sure this amount will be spent which helps the market.

#6 – Effective 2026, judges’ salaries to be raised 30%; last salary hike was in 2015. Comment: This is okay. Remember, judges, you are judging for the rakyat. Thank you for your fairness.

#7 – Owners scrapping a vehicle over 20 years old for a new national car purchase will receive a government/automaker matching grant of up to RM4,000. Comment: If the car is behaving badly, before 20 years also better scrap. If it’s working fine, there’s really no need to take up new debts. Usually the car is over 20 years old, the person is also quite old dee, why want new debts…?

#8 – EPF withdrawal limit for hajj raised to RM10,000, from RM3,000.

#9 – RM120 million to be set aside annually for PTPTN’s free education scheme, benefiting 5,800 children from poor families in public universities.

#10 – PTPTN loan repayments for first-class honours graduates from low- and middle-income families will be exempted. This benefits about 6,000 borrowers and costs RM90 million annually.

#11 – Full stamp duty exemption on small-value insurance policies or takaful certificates purchased by individuals and micro, small and medium enterprises (MSMEs) extended for another three years until 2028. Similar extension given to full stamp duty exemption on insurance policies and takaful certificates for Perlindungan Tenang products.

#12 – A total of 4,500 contract doctors have been approved and will be offered permanent positions next year.  

#13 – The existing RM3,000 tax relief for life insurance/takaful premiums (self and spouse) will be extended to cover children.

#14 – All nine million Sumbangan Tunai Rahmah (STR) recipients to receive Sumbangan Asas Rahmah (Sara) assistance of up to RM100 per month, or RM1,200 per year. One million STR recipients under the e-Kasih programme will also receive up to RM200 per month, or RM2,400 annually, under Sara. Single individuals will receive RM600, equivalent to RM50 per month. The maximum household benefit stands at RM4,600 — comprising RM2,200 in STR and RM2,400 in Sara — for households earning below RM2,500 per month with five children.

#15 – 100% exemption on excise duty and sales tax will continue for the purchase of Proton and Perodua cars by taxi drivers and private hire car operators

#16 – RM1 billion will help with the cost of living, including RM600 million to expand Payung Rahmah programmes nationwide. RM250 million to support distributing basic goods to rural areas in Sabah and Sarawak.

What’s the GDP growth for 2026?

FORECAST: Malaysian economy to grow 4.0%-4.5% in 2026

Do read here for even more details: theedgemalaysia.com

Or here: thestar.com.my

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