11 Most Important Highlights From #Budget2025
The 2025 Budget is the largest budget ever tabled in Malaysian history, amounting to RM421 billion.
1. The government is introducing a 2% tax on dividend income exceeding RM100,000
Prime Minister Datuk Seri Anwar Ibrahim said this will start beginning the 2025 assessment year.
He added that consideration will be given to exempting tax on dividend income from government savings such as Employees' Provident Fund (EPF), unit trusts under Permodalan Nasional Berhad (PNB), and dividend income from abroad.
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2. Increased sales tax on imported premium items
Anwar specifically mentioned this will involve premium food items such as salmon and avocados.
However, he assured the public that the move would not affect the prices of basic food items.
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3. A 50 sen excise tax on sweet drinks
Anwar said the tax will eventually be increased to 90 sen next year.
"Malaysia is among the most obese in Southeast Asia, and one of the main enemies of non-communicable diseases is sugar," he explained.
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4. Minimum wage to be increased from RM1,500 to RM1,700, effective 1 February 2025
Anwar also announced that the Human Resource Ministry will publish a guideline of basic salaries for all job sectors for employers' reference.
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5. Employees' Provident Fund (EPF) contributions will be made mandatory for all foreign workers in Malaysia
Anwar said this move is part of the government's commitment to ensuring fair treatment for all workers, regardless of nationality, in line with international labour standards.
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6. Increased income tax relief for medical insurance and expenses
The income tax relief for medical insurance and education insurance premium payments will be increased to RM4,000, while the tax relief for medical expenses will be increased to RM10,000, covering insurance payments made with a co-payment feature.
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7. JAKIM will be hiring 100 additional auditors to expedite the issuance of halal certifications
Additionally, Anwar said the MYeHALAL system will be improved to integrate 20 government agencies and 100 international halal certification bodies under a single platform to bolster local halal companies and expand their reach internationally.
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8. RM600 million will be allocated for the National Disaster Management Agency to address flash floods and landslides
Anwar said an allocation of RM150 million has already been given to local authorities and the Department of Irrigation and Drainage to address flash floods that have hit Kuala Lumpur and several other cities recently.
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9. RM30 million will be allocated to accelerate the repair of potholes on federal roads
A total of RM2.8 billion has been set aside to maintain roads under the Malaysian Federal Roads System.
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10. RM1.35 billion will be allocated for the maintenance of ageing hospitals and dilapidated clinics
Anwar said the Health Ministry will be allocated a total of RM45.3 billion for the upcoming year.
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11. RM2 billion will be spent on upgrading and maintaining schools nationwide
The Education Ministry will receive a total allocation of RM64.1 billion next year.
Anwar added that an allocation of RM100 million will also be set aside to provide Internet access to schools in rural and remote areas.
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