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
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
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