Budget 2026: Gaps That Need to be Addressed!

 

A recent survey found that while 63% of Malaysians viewed Budget 2026 positively, many still feel that critical needs remain unaddressed, particularly around the cost of living, healthcare, and governance transparency. 

The nationwide survey, conducted by Milieu Insight among 1,000 Malaysians shortly after the Budget 2026 announcement, further revealed that inflation remains the nation’s top challenge (44%), underscoring ongoing concerns about rising prices and household pressures.

Source: https://www.dagangnews.com

 

Nearly three-quarters (73%) of Malaysians rated their understanding of Budget 2026 as “moderate” to “fairly well” reflecting decent awareness of its key reforms. However, 13% admitted to having little understanding, underscoring the need for simpler, more relatable communication that connects policy goals to everyday realities. 

While social media remains the leading channel for budget updates (47%), particularly among younger Malaysians, traditional outlets such as television and radio (27%) still play an influential role among older audiences, highlighting the importance of multi-channel communication strategies to ensure broad understanding and engagement. 

Budget 2026 introduces several household-focused measures, including expanded childcare and medical tax reliefs, preventive healthcare incentives, and enhanced social protection schemes such as i-Saraan Plus for gig and informal workers. These reflect a continued commitment to inclusive development and stronger household resilience. 

Yet, Milieu’s findings indicate that Malaysians want a stronger emphasis on three pressing priorities: improving access to healthcare and reducing medical costs (35%), lowering prices of food and daily essentials (32%), and making housing more affordable (26%). Healthcare concerns persist across all age groups, showing that affordability and access to quality care remain priorities despite new reliefs and ongoing public health investments under the Health Ministry’s 2026 allocation. On its tangible impact, only 18% of respondents believe Budget 2026 will significantly ease the cost of living, while 51% say it provides only slight relief. Middle-aged Malaysians express the greatest frustration, whereas younger adults remain uncertain about its short-term effects. 

When asked who benefits most, a majority (57%) identified low-income B40 households, affirming recognition of progressive, targeted assistance. However, just 24% felt the middle-income M40 group receives sufficient support, reinforcing perceptions of a “squeezed middle”. 

When asked about priorities for future budgets, Malaysians called for long-term reform over temporary relief, emphasising three key areas: anti-corruption efforts (33%), subsidy restructuring (30%), and job creation programmes (30%), particularly among the younger generation. These findings suggest that while Budget 2026 is generally welcomed, public confidence ultimately depends on implementation, communication, and demonstrable results.  

Reference:

Survey: Budget 2026 seen as positive but gaps still need to be addressed, Focus Malaysia, 16 October 2025

A True Reciprocal Agreement or a Charter for Annexation?

 

The so-called reciprocal trade agreement, signed on Oct 26 has been presented as a pact to enhance reciprocity and secure supply chains. A review of the agreement’s main text and detailed annexes reveals a starkly different reality. (This blog is based on an article in MalaysiaNow dated 29 October 2025) 

Source: https://en.wikipedia.org

As mentioned in an earlier article in this blog, the deal's most consequential clauses are found in Section 5 under "Economic and National Security". Article 5.1.1 obliges Malaysia to become a direct participant in US economic conflicts. It states that if Washington imposes sanctions or tariffs on any third country for national security reasons, Malaysia "shall adopt or maintain a measure with equivalent restrictive effect". This provision effectively ends Malaysia’s long-held foreign policy of non-alignment, contractually obliging it to mirror US sanctions against other nations, regardless of Malaysia’s own interests. 

This alignment is deepened in Article 5.2, which requires Malaysia to “align with all unilateral export controls in force by the US” and actively cooperate in restricting its own nationals from transacting with entities on US domestic sanctions lists, such as the Department of Commerce’s Entity List and the Treasury's SDN List. 

The agreement’s annexes reveal the mechanisms for this enforcement.

Malaysia is required to “screen and share its customs and transaction data with US authorities, granting US agencies direct surveillance access to Malaysia's customs data to enforce US law on Malaysian soil. 

As the ultimate enforcement tool, Article 5.3.3 gives the US the unilateral right to “terminate this Agreement” if Malaysia enters into a new free trade agreement with a country that “jeopardises essential US interests”; in other words, the US may veto Malaysia's future trade diplomacy. 

The agreement mandates a massive, one-way transfer of wealth from Malaysia to the US. Article 6.1.3, reinforced by Annex IV, commits Malaysia to "facilitate... approximately US$70 billion in job-creating investment... in the United States" over the next 10 years Annex IV also details an "estimated value of US$150 billion" in purchases by Malaysian multinational companies for semiconductors, aerospace, and data centre equipment over the next five years. This combined US$220 billion commitment functions as a direct, non-reciprocal stimulus package for the US economy, draining capital from Malaysia’s domestic development. 

Article 6.2 of Annex III explicitly forbids Malaysia from "banning critical mineral exports to the United States" and forces it to "eliminate any rare earth element export quotas to the United States". It further commits Malaysia to encouraging a supply of rare earth magnets on "terms favourable to the United States". The agreement explicitly bans the policy tools used by developing nations to build local capacity, including restrictions on technology transfer and digital taxes. Article 3.1 of the main text bans "discriminatory" digital services taxes, while Article 3.1 of Annex III specifically forces Malaysia to “remove the requirement for US social media platforms and cloud providers to contribute 6% of their revenue... to a domestic fund”. 

Malaysia’s domestic regulatory bodies are rendered irrelevant and are legally bound to accept US standards as their own. Medicine: Article 2.4 of Annex III states that Malaysia "shall accept a prior marketing authorisation issued by the FDA" for US pharmaceuticals as sufficient for approval in Malaysia, and must accept FDA factory inspections "without further need for an inspection" by Malaysian authorities. Food Safety: Article 2.6 of Annex III requires Malaysia to "recognise that the US sanitary and phytosanitary (SPS) measures... satisfy the requirements of Malaysia’s measures". Furthermore, Article 2.13 states that if Malaysia has no set limit for a pesticide, it “shall recognise and accept the corresponding US tolerances”. 

The deal directly targets everything from agriculture to media. Consider Article 2.20 of Annex III. It requires Malaysia to "remove the requirement... that broadcast stations devote 80% of terrestrial airtime to local Malaysian programming". 

Meanwhile, Annex I, Appendix 1, establishes large, duty-free quotas for sensitive agricultural goods, including 500,000 kg of swine meat, two million litres of milk, and one million eggs in the first year alone – all set to increase annually – exposing local farmers to devastating, state-sponsored competition. While Malaysia surrenders its sovereignty, economy, and regulatory power, the US, in Article 7.4, explicitly retains its unilateral right to impose additional tariffs on Malaysia to "protect its economic or national security". 

This is not a bilateral agreement. It is a one-sided charter that secures Malaysia’s role as a dependent economic and military asset for Washington. Why did we do this? To pacify the US? To sign an agreement irrespective of its content and consequence? Are we a vassal state of the US? Why don’t we surrender monetary policy and use the US dollar as our currency? 

Reference:

A charter for annexation: How Anwar delivers Malaysia on a platter to Uncle Sam,

MalaysiaNow, 29 October 2025

Is This All for a Pen?

 

Malaysia’s economy is RM1.93 trillion based on the nominal GDP as at 2024. On 26 October 2025, Trump and Anwar signed off the Agreement on Reciprocal Trade on the pretext of strengthening bilateral relations. The White House portrayed it as "...allowing unprecedented access to each other’s markets." Reciprocal means to benefit both sides. However, the deal benefits America more than Malaysia. 

Malaysia has agreed to purchase American products like aircrafts, semiconductors, aerospace components and data centre equipment. Malaysia has further agreed to buy natural gas, coal plus telecommunication products and services. We also threw in capital fund investments as well. A cursory glance of the Agreement shows that we will spend about RM1 trillion. That is half the size of our economy. Do we have that much to shop around? Where are we getting the money from? Will we take on more debt? 

Source: https://ms.wikipedia.org

 

In return, the Government and Minister in charge of Economy will no doubt amplify about the 19% tariff that America has bestowed on us. The tariff is on goods to the US. 

Another clause states that the US government would reimpose the 25% tariff announced in April should Malaysia enter into any bilateral trade deal with "a country that jeopardises US interests". Further in the agreement, Malaysia is also required to align with any US move to punish other countries with customs duties, quotas, prohibitions, fees, charges, or other import restrictions. It states that once notified of such a move, "Malaysia shall adopt or maintain a measure with equivalent restrictive effect as the measure adopted by the United States or agree to a timeline for implementation". 

The direct effect is that Malaysia loses the right to determine its own trade and diplomatic policies towards other nations. If the US imposes sanctions on any country, Malaysia is automatically expected to follow suit, even if that country is an important trading partner of Malaysia. 

Where is the benefit then for Malaysia? As a natural gas producer why do we buy natural gas from America? We have exemptions for 1,711 key Malaysian exports, including palm oil, rubber, cocoa, aerospace components and pharmaceuticals. This is 12% of total exports to the US. 

It is a reminder that America will bully whomsoever it wants to. Malaysia should have bandied around all countries that are opposed to the tariff and iron out strategies to withstand the impending imposition of "Trump Tariff". 

Has Malaysia taken the bait? Have we been amazed by the aura of Air Force One, the ride in the Beast and the White House pen for signing the trade agreement? Are we paying tribute to His Imperial Highness, King Trump? 

References:

All for a pen, blog by Rafique Rashid, 27 October 2025, 

Beyond dance with Trump, shocking details emerge on deal Anwar signed, MalaysiaNow,

27 October 2025 

What Washington’s “due consideration” means for Malaysia’s RM32.8 billion semiconductor industry, Wan Ahmad Atarmizi, Sinar Daily, 27 October 2025

Electricity Demand Surge in Q2!

 

After a seasonal dip in quarter one of financial year 2025 (1QFY25), electricity sales in Peninsular Malaysia rebounded sharply in 2QFY25, led by commercial demand from data centres. Load utilisation rose to 603MW in Jun 2025 from 485MW in Mar 2025, with total energy use of 1,852GWh in the first half of financial year 2025 (1HFY25).  

As of Jun 2025, 24 data centre projects (with 3,500MW capacity) have been completed, including three data centre projects (with 740MW capacity) in 2QFY25, according to Kenanga. Year-to-date (YTD), five new Electricity Supply Agreements (ESA) were signed, adding 480MW, with two projects (with 253MW) completed in Jul – Aug 2025.  

In total, 47 ESA have been signed, with cumulative capacity of 6,700MW. Demand from this segment is expected to grow further. To meet rising demand growth from data centre development, Malaysia is expected to add 6GW–8GW of new generation capacity by 2030. The Energy Commission has invited RFPs for:  

(i) new generation capacity. 

(ii) extensions of gas-fired PPAs. 

(iii) additional capacity from expired PPAs from gas-fired plants.  

With no new coal-fired plants, gas-fired capacity is the priority to support rising demand. In fact, natural gas usage in Peninsular Malaysia is already driven largely by the power sector. Gas-fired generation is expected to climb toward 50% by 2030, supported by: 

(i) data centre-driven electricity demand.

(ii) phase-out of coal plants.

(iii) 6GW–8GW new gas capacity by 2030.  

Reference:

Electricity demand surges in quarter two alongside growing demand for data centre,
CS Ming, Focus Malaysia, 8 October 2025

 

Can You Steal RM1.9 million and be at Peace?

Every few weeks, Malaysia delivers another episode of “I Swear I Didn’t Steal That Much.”

The latest star is a 29-year-old former accounting officer, who was charged in the Balik Pulau, Penang Sessions Court with four counts of criminal breach of trust involving more than RM1.9 million. Between 2020 and 2023, she allegedly made over 200 transfers from her company’s account into her personal one - before leaving her job to sell mooncakes. 

As sum of RM1.9 million is not small. And it makes you wonder - why do people keep doing this when it’s obviously not going to end well? Especially someone who knows how accounts work. The money trail doesn’t vanish into thin air. CIMB isn’t your grandma’s cookie tin. Every transfer, every sen, gets recorded. Yet somehow, people still think they’re smarter than the system.

 

Source: https://simple.wikipedia.org

Maybe it starts small. A few thousand ringgit “borrowed” because the boss is stingy, or because the company underpays and overworks you. You justify it - “I’ve earned it.” Then you do it again. And again. By the tenth time, guilt is no longer the problem - it’s your spending limit. 

And honestly, can you blame people for thinking it’s okay? Because out there, we’ve got folks who take millions or billions - with public funds and still walk around giving speeches about integrity. The worst that happens? They switch political parties or cry on TV about being “victimised.” 

So maybe it’s not pure greed. Maybe it’s frustration. Maybe it’s watching people with titles and influence get away with daylight robbery while you’re stuck calculating credit card balances and eating instant noodles. You see injustice long enough, and at some point, you stop fearing consequences - you just want your slice of the pie. 

Greed is never satisfied. It always whispers, “Just one more.” Until one day, the whisper is drowned out by a police siren. 

And while some people have the luxury of calling corruption “allocation,” the rest of us call it what it is - a very expensive life lesson, paid in instalments of stupidity. This is not a new phenomenon. We have been through this with many of our PMs involved – the problem is there is no real enforcement or seriousness in stamping-out corruption, fraud and scams. So, if the “taikohs” can do it, why not me? The silly thing is even the opposition don’t blare about this but more on alcohol, dress code and the outward form of religiosity!  This needs a people movement, like Bersih, to stop the malaise. If not, we are on a sliding slope to another “banana” republic! 

Reference:

Can You Steal RM1.9 million and Still Sleep at Night?, Fa Abdul, https://newswav.com,
8 October 2025

Budget 2026: What’s Available for Malaysian SMEs?

 

There are no new tax measures and no major policy overhauls in Budget 2026. This year’s RM470 billion national budget, the largest in Malaysia’s history, focuses on stability and business support. No dramatic reforms.

 

Source: https://www.wikiimpact.com

 The five key areas that directly impact Malaysian SMEs include: 

1. Cash Flow for SMEs 

SJPP Loan Guarantees to Ease Financing Pressure

The government has expanded the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) guarantee ceiling to RM30 billion, including RM5 billion specifically for exporters.

This allows SMEs with limited collateral to access loans more easily, as the government will guarantee up to 70% of their financing — helping more entrepreneurs overcome cash flow bottlenecks. 

Other financial support includes:

·                  RM2.5 billion in microloans via BSN and TEKUN,

·                  RM50 million in cooperative financing, and

·                  RM500 million in soft loans through EXIM Bank for export-related businesses. 

The government also pledged to speed up tax refunds under the Public Finance and Fiscal Responsibility Act (FRA) — a move long overdue for business owners. 

2. Encouraging Export Growth 

Budget 2026 continues to support Malaysia’s exporters and globally active SMEs.

·           RM5 billion under SJPP will guarantee export-related financing.

·           RM500 million via EXIM Bank will support companies affected by global trade disruptions.

·      Khazanah, KWAP, and BPMB will invest over RM1 billion into Malaysia’s semiconductor and electronics industry, reinforcing the country’s position in global value chains.

·           RM60 million through MATRADE will help SMEs expand into Africa, Latin America, and Central Asia. 

3. Tourism Revival — Building Momentum for Visit Malaysia Year 2026 

The government is investing over RM700 million to attract tourists and boost local travel ahead of Visit Malaysia Year 2026. In addition, the following tax incentives were announced:

 

·                  Up to RM500,000 tax deduction for renovation and refurbishment of tourism premises;

·                 100% income tax exemption on additional earnings from inbound tourism packages; and

·                 50–100% tax exemptions for organisers of international exhibitions, arts, and cultural events. 

Personal tax relief for domestic tourism has been reintroduced — helping smaller tourism players, and event organisers sustain their businesses. 

4. AI and Digital Upskilling — Building a Future-Ready Workforce 

Locally, SMEs can now claim an additional 50% tax deduction for AI and cybersecurity training programmes recognised by NAICI, TalentCorp, or MyDigital — a major step toward building a more digital-savvy workforce. 

Additionally, Development Financial Institutions (DFI) will provide nearly RM1 billion in financing and grants to help SMEs automate operations and digitalise business processes — further strengthening Malaysia’s innovation ecosystem. 

The government also allocated RM5.9 billion for R&D, design, and commercialisation activities, alongside RM53 million under the Digital Accelerator Grant to support innovation in emerging technologies. 

5. Tax and Compliance — No New Taxes, Just Smarter Systems 

Perhaps the most welcome news for businesses this year is what didn’t change. There will be no further expansion of the Sales and Service Tax (SST) — a relief for SMEs already adjusting to the broader SST scope introduced in mid-2025. 

Instead, the government is moving forward with digital tax administration to make compliance easier and faster. 

Over the last two years, Malaysia’s business community has weathered major shifts — dividend tax, capital gains tax, expanded SST, and new reporting obligations. These transitions have tested the adaptability of entrepreneurs and professionals across every sector. No new taxes. No compliance shocks. Just stability. 

Reference:

Budget 2026: What It Means for Malaysian SMEs, Insights by Datin Shin Yap, Newswav,
11 October 2025

Do Malaysians Read an Average of 24 Books a Year?

 

Many of you may not have enough strength to read more than the title of this article, but most of you, apparently, read an average of 24 books a year, or two books a month. I’m below average in this category. You would think a writer who writes blogs would be reading at least 48 books a year when the national average is 24. But think again. 

In my heart and mind, I’m having as much trouble believing this as I would in believing that there’s a dragon living happily in the waters of Tasik Chini. But what can I do — this is what the National Unity Minister says.

 

Source: https://meta.wikimedia.org

According to National Unity Minister, efforts to instil a reading culture among Malaysians have apparently shown results. The Reading Profile Study recorded a significant jump in reading habits over the years. In 2005, the average citizen read only two books a year. Ten years later, the number jumped to 15 books, and in 2023 it increased again to 24 books per year according to the Minister. 

Malaysians, it seems, are a very contrarian people, who do the exact opposite of our condition. In 2005, when all that most of us had was Astro and dial up internet, we only read 2 books a year. But as our broadband speed picked up and we had a plethora of options - from YouTube to TikTok to Twitter and Facebook - we decided to go against the grain and start picking a good old-fashioned book instead. 

Of that number, 16 were physical books, while the other eight were read online. Aaron added that 88.6% of Malaysians are now active readers. Is it really the success of government initiatives to strengthen the nation’s “knowledge ecosystem.” 

To support this growing reading culture, the government has launched the one-stop digital platform u-Pustaka under the National Library of Malaysia (PNM). The platform offers over a million online reading materials — from e-books and magazines to journals and audiobooks — all free to the public. 

Through u-Pustaka, Malaysians can access 22 digital databases, including Overdrive, Alkem Digital Library, Mason Crest, Emerald eBook, JGate, Lawnet, Odilo and MyGuru — all designed to make Malaysia a “comprehensive, inclusive and easily accessible virtual knowledge store.” 

So, there you have it. We are officially a nation of bookworms — hyper-literate citizens quietly flipping pages in between scrolling TikTok, binge-watching Netflix, and arguing about politics on Facebook and sailing to Gaza with aid! Incredible, don’t you think? 

Reference:

Official records: Malaysians Read an Average of 24 Books a Year, Opinion, TheRealNehruism, https://newswav.com, 12 October 2025