PRIME MINISTER Datuk Seri Anwar Ibrahim has unveiled a transformative Budget 2026, placing national equity and social mobility at the heart of economic policy, with the Bumiputera community, women, youth and marginalised groups receiving focused and historic commitments.
Anchoring the economic thrust is PuTERA35, a new Bumiputera agenda aimed at scaling participation in high-value sectors through a sharper focus on financing, talent development and strategic ownership.
“The Bumiputera agenda will no longer be viewed in isolation, but as a core pillar of inclusive national growth,” said Anwar.
A sum of RM40 million has been allocated to scale up high-potential Bumiputera firms. The recent consolidation of Ekuinas and PHB under Yayasan Pelaburan Bumiputera (YPB) will see Ekuinas preparing its investee companies for listing and eventual acquisition by PNB, while PHB strengthens Bumiputera stakes in strategic real estate and commercial sectors.
In a first, the government will expand Malay Reserve Land by an additional 50 acres in Bandar Malaysia, where Petronas, as landowner, is set to launch the first phase of development by the end of 2026. Simultaneously, the Subang Airport expansion will be led by the government and GLCs to safeguard national interest and ensure Bumiputera inclusion in aerospace growth corridors.
The Retirement Fund (KWAP) will provide RM20 million in microfinancing to retired individuals to boost community-level entrepreneurship.
Education and entrepreneurship receive record backing
Bumiputera educational institutions will receive RM6 billion in total allocations to MARA, Yayasan Peneraju and UiTM.
To strengthen business continuity, RM2.4 billion has been set aside for G1-G4 Bumiputera contractors, while RM10 billion out of the RM30 billion SJPP government guarantee will specifically support Bumiputera businesses.
SME Bank will offer RM200 million under the “Jaguh Serantau” initiative to enable Bumiputera SMEs to break into export markets. MARA’s scale-up programme receives RM100 million for high-value strategic sectors, while CIDB will channel RM10 million to increase competitiveness among young Bumiputera construction contractors.
VentureTECH, which has invested in 31 Bumiputera tech firms—nine of which have entered global markets—will receive RM105 million to increase Bumiputera equity in advanced technology industries.
‘Empowering women is not charity—it is justice that must be fulfilled"
Quoting directly from his Budget speech, Anwar stated: “From the quiet sacrifices of mothers to women breaking glass ceilings, empowering women is not charity—it is justice that must be fulfilled.”
As of 1 October, 45 percent of listed companies meet the target of 30 percent female board representation, although eight remain without a single female director. The Securities Commission has been tasked with pushing further reforms in this space.
To ease family burdens, the RM3,000 tax relief on early childcare expenses for children aged six and below will be extended to cover children up to age 12 at registered day-care or transit centres, effective from the 2026 assessment year.
Amanah Ikhtiar Malaysia, which boasts a 99.97 percent repayment rate, will receive RM230 million, raising its available fund to RM2.9 billion—benefiting over 300,000 women entrepreneurs. A separate RM270 million from Bank Rakyat, BSN, MARA and SME Bank will be allocated for women-led micro and small enterprises.
The government will also support legal aid for 5,000 low-income single mothers, particularly in divorce and custody cases.
Youth given front row in nation-building
“Young people must not remain spectators on the sidelines,” said Anwar. “They must be given space, trust and opportunity to lead, create, and contribute.”
The youth age bracket will now be officially set at 15 to 30 years. The National Service Training Programme (PLKN) will be revived in 2026 with a RM250 million allocation, starting as a pilot in higher education institutions before full implementation in 2027.
To enhance employability, Khazanah will allocate RM200 million for the KYouth programme, offering job-based training to 11,000 non-degree holders in critical sectors including semiconductors, machinery, MRO, digital, and tech. MARA’s Industrial Boot Camp, which has successfully trained 5,000 participants with job guarantees, will continue with a RM30 million allocation.
The Rakan Muda programme will be revitalised as a nation-building platform, with RM40 million to support outreach in rural and underserved communities.
Youth entrepreneurship will also be supported with RM150 million in financing from BSN for entrepreneurs under 30, and SME Corp’s “Tunas Usahawan Belia Bumiputera” programme will offer RM12 million in training and start-up support. The government will continue to subsidise B2 motorcycle licences for low-income youth in the gig delivery economy.
No Malaysian left behind: welfare for Orang Asli, OKU and refugees
Reflecting the “Leave No One Behind” principle of the Sustainable Development Goals (SDG 2030), RM412 million has been allocated for comprehensive Orang Asli development.
This includes RM155 million for new roads in Negeri Sembilan and Pahang, nearly RM13 million to upgrade preschool centres (TABIKA), and the expansion of the floating school “Chup Badui Sikulah” in Hulu Perak to benefit over 350 Orang Asli children.
The government will also table amendments to the Aboriginal Peoples Act 1954 to better protect land rights and welfare.
Support for the disabled (OKU) remains a top priority. Nearly RM1.4 billion will be channelled for severely disabled individuals, those unable to work, and OKU employment incentives. The newly launched Autism Services Centres in Peninsular Malaysia will expand to Sabah, Sarawak and Labuan, serving 13,000 individuals and their families.
To improve mobility, Prasarana will provide 100 special vans equipped to carry three wheelchair users each. Meanwhile, the tax relief for early intervention, rehabilitation, and screening for children with disabilities will be raised from RM6,000 to RM10,000.
A second chance for all
The government’s “Second Chance” policy has enabled 200,000 individuals to exit bankruptcy since March 2023. Anwar announced a streamlined, targeted Fast Track approach to support single parents, micro-entrepreneurs affected by crises, scam victims, and those impacted by abandoned housing projects.
An allocation of RM15 million will support second-chance programmes for 1,700 individuals including former drug addicts in rehabilitation centres and 3,000 former female inmates without family support, offering seed capital to rebuild their lives. “I call on more private sector companies to support this second-chance initiative,” said Anwar.
In a humanitarian push, RM10 million will be allocated for a refugee registration programme and to upgrade three immigration detention centres and three Baitul Mahabbah facilities into special separation centres for refugee men, women and children.
Budget 2026 marks a shift in tone and substance—setting Malaysia on a path where prosperity and justice are pursued in tandem. - October 10, 2025
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