Anwar tables RM421b Budget 2025 for the '85pct'

BUDGET 2025 | Prime Minister Anwar Ibrahim tabled his coalition government’s third fiscal plan for the nation in the Dewan Rakyat this afternoon.

Titled “Reinvigorating the Economy, Driving Reforms, Prospering the Rakyat”, the Budget aims to protect the interests of the lower and middle-income categories as well as the bottom of the high-income group dubbed the “85 percent” as opposed to the ultra-rich “T15”.

Anwar, who is also finance minister, said the Budget 2025 would further drive economic growth and ensure justice for the people.

This was the final budget under the 12th Malaysia Plan (2021-2025) before the transition to the 13th Malaysia Plan for the next five years.

The national budget, amounting to RM421 billion and the biggest in history, placed greater emphasis on efforts to boost the economy, master innovation aspects, and ensure a fairer and more equitable distribution of wealth.

Anwar, who is also the finance minister, said the focus would also advocate for the weak and vulnerable, ensuring that no groups are left behind in the pursuit of high-income nation status.

“When we took over the country’s administration, we set a clear direction that past mistakes should neither be defended nor repeated. Therefore, the principle of good governance must continue to take root and be nurtured,” he said.

This concludes Malaysiakini’s live coverage of the tabling of Budget 2025.

READ MORE: Budget 2025 visualised

Anwar ends ‘budget for 85pct’ speech on poetic note

6.35pm: Prime Minister Anwar Ibrahim, who is also the finance minister, ends his Budget 2025 speech, which lasted more than two and a half hours, with a poem by Indonesian poet Teguh Esha about “love”. The RM421 billion Budget 2025 estimate is the highest ever announced.

Special allowances for civil servants, pensioners

6.30pm: Civil servants grade 56 and below, including contract workers, will get a RM500 special allowance, while pensioners will get RM250.

On-call allowance for doctors in public service is also increased by RM55 to RM65.

Editor’s note: The report previously said the on-call rate is increased to RM65 per hour.

More help for parents with autistic children

6.15pm: Tax relief to treat autistic children will be increased to RM6,000 from RM4,000.

The government is also allocating RM15 million to help with school fees for children with autism.

Personal tax relief will also be expanded to cover vaccination, sports equipment for parents, and medical treatment for grandparents, while tax cuts for employers giving allowances for child care will also be expanded to cover elderly care.

Additional tax relief for disabled people is increased to RM7,000, tax relief for disabled couples goes up to RM6,000, while tax relief for unmarried disabled dependents is increased to RM8,000.

PM confirms pilot programme for National Service 3.0

6.15pm: Anwar confirms that a pilot programme for National Service 3.0 will be implemented, with an RM50 million allocation.

Transport for school students from train stations

6.10pm: Prasarana will be providing transit vans to send schoolchildren from train stations to schools for a fare of 50 sen one way. 

All higher education students using BAS.my services nationwide, meanwhile, are entitled to free fares.

Tax relief for first-time homeowners depending on price

6.10pm: First-time homeowners will be getting tax relief of up to RM7,000 on interest payments for homes under RM500,000.

Owners of homes priced above RM500,000 up to RM750,000, meanwhile, will get a tax relief of RM5,000.

RM200m to spruce up elevators in public housing

6.10pm: The government is allocating RM200 million to fix dilapidated elevators in low-cost public housing areas.

Meanwhile, RM100 million is being allocated to upgrade 48 Madani public parks.

Chinese new villages will get RM84 million to upgrade facilities and other community needs.

While not mentioned in his speech, a slide states that the Local Government and Housing Ministry has been tasked with addressing the needs of Indian villages.

Retired civil servants above 65 can continue IJN treatment

6.05pm: Anwar says civil servants, especially retirees above the age of 65 who are undergoing treatment at the National Heart Institute (IJN), can continue with their treatment.

The premier also notes the criticism with regard to civil servants treated at IJN being referred for follow-up treatment at other public hospitals.

PM wants toilets fixed, reveals bitter news on sugary drinks

6pm: Deploring the poor condition of facilities and public toilets in public hospitals, the prime minister urges their respective managements to improve them.

He says they should fund such efforts with part of the RM45.3 billion allocated to the Health Ministry - the second highest allocation for a ministry in Budget 2025.

Meanwhile, excise duties on sugary drinks will go up gradually, starting with a 40 sen increase on Jan 1 next year.

The additional funds will be used to fund public health, including diabetes treatment centres.

RM4b for scholarships, tax relief for SSPN contributors extended

5.55pm: The prime minister announces that RM4 billion will be allocated for scholarships.

Anwar says GLICs and GLCs are committed to ensuring 50 percent of scholarships are given to lower and middle-income families.

Tax relief for parents contributing to the National Education Savings Scheme (SSPN) will also be extended for another three years.

RM635 million is being allocated for maintenance and repairs at public varsities and expanding internet access.

RM20 million will be allocated to UiTM to train more electric and electrical engineers, while RM50 million will be allocated to artificial intelligence research in all public varsities.

Govt allocates RM2b for food aid in boarding schools

5.55pm: The government is allocating RM2 billion for food aid to students in boarding schools.

The Supplementary Food Programme (RMT) will also get RM870 million and will benefit 860,000 students.

Meanwhile, Early Schooling Aid to all students from Standard One to Form Five - regardless of parents - will also continue next year.

Govt studying EPF savings transfer between next-of-kin

5.50pm: The prime minister says EPF is looking into methods to transfer savings between next-of-kin.

He adds that all migrant workers are also required to become EPF contributors.

Tax relief on premiums for private retirement schemes is also being extended to 2030.

Cash aids to increase next year

5.35pm: The combined quantum for the Rahmah Cash Aid (STR) and the Rahmah Necessities Aid (Sara) will increase to RM4,600 next year.

On top of this, social aid provided through the Social Welfare Department will also be increased.

Anwar does not provide the exact breakdown in his budget speech, but says a poor household with three children could get up to RM13,000 in aid next year, up from RM11,000.

Poor senior citizens, meanwhile, can receive up to RM10,000 instead of RM8,000.

Meanwhile, 4.1 million households will receive Sara of RM100 per month starting April next year.

Anwar says this means that even the poorest Malaysian will have a minimum of RM1,100 each month, and this is before further aid from state governments, foundations, and zakat.

Single individuals, meanwhile, will receive RM600 in STR.

Minimum wage to be increased to RM1,700 from RM1,500

5.40pm: The national minimum wage will be increased from RM1,500 to RM1,700 beginning February next year.

Anwar says this was because any economic restructuring plan will only be successful if it translates into a meaningful income for the people.

“Therefore, the government has agreed to increase the minimum wage from RM1,500 to RM1,700, effective Feb 1, 2025,” he said.

RM40b allocation for loan facilities

5.30pm: The government is allocating RM40 billion as loan facilities for micro, small, and medium enterprises.

This includes RM3.2 billion for the disabled, RM130 million for the Malaysian Indian community and RM5 billion for Bumiputera SMEs.

Mara and PUNB will also allocate RM800 million in financing for bumiputera entrepreneurs, while the government is allocating RM1.3 billion to G1-G4 contractors, especially among bumiputera.

Perodua on track to roll out sub-RM100k EV next year

5.20pm: Anwar reveals that national carmaker Perodua is on track to release an EV that costs less than RM100,000 next year.

The RM2,400 incentive for electric motorbike purchases will also be extended next year.

Meanwhile, the Net Energy Metering (NEM) programme for solar panel installation will be extended to June 30 next year.

Iconic buildings to get makeover with RM600m allocation

5.15pm: The Sultan Abdul Samad and Carcosa Seri Negara buildings will get a makeover, with RM600 million allocated to restore and increase the value of these two landmarks.

This includes building a multi-storey bridge connecting Taman Botani Perdana and Carcosa Seri Negara.

The government is also allocating RM110 million to support eco-tourism destinations like the Endau Rompin National Park, Pulau Redang, and Pantai Tusan.

After fatal sinkhole incident, govt to address soil erosion

5.07pm: Touching on the sinkhole incident at Jalan Masjid India, Kuala Lumpur, which claimed the life of an Indian tourist, Anwar says the government is addressing the issue of soil erosion.

This includes RM250 million to fix slopes nationwide, RM21 million to tackle sinkholes in Kerian Laut, Perak, Kedah, and Perlis, and RM10 million for a geotechnical study on soil structure along main roads, especially in Kuala Lumpur’s golden triangle.

Mitigating flood risks in KL, other cities with RM150m

5.03pm: In an effort to tackle flash floods in the capital and other cities, RM150 million will be allocated immediately to local councils and the Irrigation and Drainage Department to clear drains and dredge rivers.

The prime minister calls on local councils and city dwellers to jointly ensure that drains in their respective areas are not clogged.

The government is also allocating RM600 million to the National Disaster Management Agency (Nadma) to prepare for floods. This includes RM300 million already allocated for this purpose.

RM1b to improve rural economies, villages

5pm: Anwar announces that RM1 billion will be allocated for community upliftment programmes.

This includes RM600 million to improve rural economies in villages, cities, the interiors, and Orang Asli settlements; RM200 million to expand on the Madani adopted villages (kampung angkat Madani) programme, and RM100 million for socioeconomic programmes at People’s Housing Projects (PPR).

Meanwhile, abandoned spaces and buildings owned by the government, GLCs, and GLICs will be repurposed to become pre-schools, daycares, and skill training centres.

User Credit Bill to be tabled next year

4.55pm: In passing, Anwar, who is also the finance minister, says the government will be tabling a “User Credit” Bill in the next Parliament meeting to govern credit provided by non-bank entities and credit providers.

Parliament gets RM180m, PAC to be empowered

4.55pm: Parliament will receive a budget of RM180 million in 2025, up from RM166 million.

This includes RM20 million for the bipartisan All-Party Parliamentary Group Malaysia Sustainable Development Goals, as well as funds to empower the Public Accounts Committee to check and balance the government.

No more queuing for hours, new bill on the cards

4.50pm: Anwar vows the public will no longer have to queue for hours for government services.

He says the government will be tabling a bill on public administration efficiency, aimed at reducing bureaucracy, speeding up processes and making government services more efficient.

He adds the government will be allocating RM5 million to the Special Task Force on Agency Reform (Star) to work with the Malaysian Productivity Corporation to reform bureaucracy at all agencies.

Govt increases special grant to Sabah, Sarawak

4.45pm: Starting 2025, the special grant to Sabah and Sarawak will increase to RM600 million a year.

Anwar’s government previously increased the rate to RM300 million for Sarawak and RM125.6 million for Sabah this year.

Before the revision last year, the prime minister claimed the rate had not been revised since 1969.

T15 to dig deeper into their pockets for education, healthcare

4.35pm: On education subsidies, Anwar says the government plans to increase fees for children of the top 15 percent (T15) studying in government boarding schools like science institutes - referring to MRSM - as well as in public higher education institutions.

He says currently, 30 percent of students in these elite schools and public universities are from higher-income families.

For example, he cited how a student pursuing a pharmaceutical degree would only need to pay RM3,000 in fees when the actual cost is RM30,000.

The prime minister says the T15 will also have to pay extra for public healthcare.

Targeted RON95 subsidies next year, 85pct still benefit

4.35pm: The government plans to implement targeted RON95 subsidies starting in the middle of next year.

He says that 85 percent of the public will continue benefiting from RON95 subsidies - which will cost the government RM12 billion.

He adds that the blanket subsidy currently benefits the “ultra-rich and foreigners”, and these funds are better channelled for education, healthcare, public transportation, and to help the Orang Asli.

PM announces 2pct dividend tax, with exceptions

4.29pm: The government will also impose a two percent dividend tax on individuals for dividends exceeding RM100,000.

This dividend tax will begin for the 2025 tax assessment year.

However, Anwar said there will be exceptions for EPF savings, unit trusts under PNB, and dividends from overseas.

SST to be expanded May 1 next year

4.32pm: Anwar says the Sales and Services Tax (SST) will be broadened and made more progressive starting May 1 next year.

However, he assures that it will not burden the people and that the sales tax will not be imposed on necessities but rather on premium imported goods like salmon and avocados.

2024 revenue projection up by RM14b

4.28pm: The prime minister reveals that revenue for this year is expected to hit RM322 billion, up from the original estimate of RM308 billion.

Meanwhile, revenue for next year is expected to be RM340 billion.

Latest budget guided by good governance, says Anwar

4.22pm: Anwar says Budget 2025 is not just for the government but also for the rakyat.

He says it will be guided by the principle of good governance and assures that past transgressions will not repeat itself.

Anwar finds wisdom in Aristotle, Cicero’s words

4.20pm: True to form, Anwar quotes ancient Greek philosopher Aristotle and Roman statesperson, orator, and scholar Marcus Tullius Cicero.

PM thanks both sides for supporting citizenship amendments

4.05pm: Anwar begins his speech by thanking MPs from both sides of the floor for supporting and passing the constitutional amendments bill on citizenship yesterday.

He hopes that such bipartisan support will continue for Budget 2025.

Deputy speaker chairs proceedings

4pm: The ringing of the Parliament bell summoning MPs to enter the Dewan Rakyat comes to an end.

Deputy speaker Ramli Md Nor - wearing traditional Orang Asli headgear - chairs today’s proceedings.

He is the first Orang Asli to preside over the budget tabling.

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