Key highlights of the federal budget

Key highlights of the federal budget

A record increase in allocations for Rahmah and Sara cash aid initiatives was announced by the prime minister.

Prime Minister Anwar Ibrahim announced that the education ministry was allocated RM64.1 billion, the largest amount given to a ministry.
PETALING JAYA:
The education ministry received the biggest allocation of RM64.1 billion out of a total RM421 billion under the 2025 budget, while the health ministry was allocated RM45.3 billion.

However, other ministries and sectors were also allocated large sums of money.

Here are the key highlights of the national budget as announced by Prime Minister Anwar Ibrahim, who is also the finance minister.

  1. The government plans to roll out targeted subsidies for RON95 by mid-2025. However, Anwar has assured that 85% of the population would remain unaffected.
  2. Starting Feb 1, 2025, the minimum wage will be increased from RM1,500 to RM1,700 per month. However, employers with fewer than five employees can postpone this change by six months.
  3. The education ministry received a historic allocation of RM64.1 billion, including RM2 billion for upgrading and maintaining schools nationwide. It is the largest funding ever for the ministry.
  4. The health ministry secured RM45.3 billion, making it the second-largest allocation, which includes RM1.35 billion for maintaining and repairing health facilities.
  5. RM13 billion in Rahmah cash aid will benefit nine million recipients, covering 60% of the adult population, an increase from last year’s RM10 billion allocation.
  6. Sales tax will no longer be imposed on basic food items starting May 1, 2025. This will be done in stages.
  7. An increase in excise duty on sugary drinks by 40 sen to RM0.90 per litre to is proposed, beginning on Jan 1.
  8. On-call allowance for medical and dental officers will be raised by  RM55 to RM65, depending on their field and department.
  9. Civil servants will receive a special cash aid of RM500 for those in Grade 56 and below, and RM250 for government retirees, to be paid in February 2025.
  10. The government has proposed requiring all foreign workers to contribute to EPF, to be implemented in phases.
  11. Sabah and Sarawak will receive RM6.7 billion and RM5.9 billion in development funds respectively. Special grants for both states are set to double to RM600 million next year.
  12. The government is adding 100 more halal auditors to the Islamic development department (Jakim) to expedite halal certification processes while improving the MYeHALAL system, integrating 20 government agencies and 100 international halal certification bodies on one platform.
  13. The home ministry received RM19.5 billion, including RM2.12 billion for the police force and uniformed agencies. The allocation for the Malaysian Anti-Corruption Commission has been increased to RM360 million from the RM338 million allocated this year.
  14. The government is planning to introduce a law that will allow house arrest as an alternative punishment for certain offences.
  15. In preparation for Visit Malaysia Year 2026, RM550 million is allocated for tourism promotion and activities, RM110 million for improving tourism infrastructure and eco-tourism partnerships, and RM600 million by Khazanah Nasional Bhd for restoring and preserving cultural landmarks in KL.
  16. An additional RM457 million has been allocated for the rural and regional development ministry, bringing the total allocation to RM11.9 billion.

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