PUCHONG (Oct 14, 2025) – The Malaysian government has unveiled Budget 2026, totaling RM419.2 billion, with a strong focus on infrastructure upgrades, affordable housing, and the nation’s green transition. Tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, the budget continues the government’s “Madani Economy” vision, emphasizing inclusive growth and sustainable development.
Out of the total allocation, RM81 billion is dedicated to development expenditure, channelled towards projects such as flood mitigation, highway expansions, and airport upgrades across Penang, Kota Kinabalu, Tawau and Miri. The government also highlighted major investments in connectivity and regional development.
In addressing homeownership, the budget extends full stamp duty exemptions for first-time buyers purchasing homes priced up to RM500,000 until the end of 2027. The Housing Credit Guarantee Scheme (SJKP) is expanded to RM20 billion, offering greater access to financing for gig workers and self-employed individuals. Incentives are also introduced for developers to convert commercial properties into residential units.
For civil servants, RM2.2 billion has been allocated to build, repair, and upgrade staff quarters for teachers, nurses, police officers, and armed forces personnel. The Youth Housing Scheme under the Public Sector Home Financing Board (LPPSA) is extended to 2026, with the financing cap raised to RM1 million.
Budget 2026 also advances Malaysia’s green economy agenda, targeting 70% renewable energy generation capacity by 2050. To support this, RM150 million is set aside for the National Energy Transition Fund, alongside RM1 billion under the Green Technology Financing Scheme (GTFS). The government further announced plans to implement a carbon tax in 2026, beginning with the steel and energy sectors.
Urban development and community welfare remain key priorities, with RM500 million allocated to DBKL for housing and hawker infrastructure improvements, RM300 million for PPR (People’s Housing Projects) maintenance, and additional funds for heritage restoration, village infrastructure, and public amenities.
Overall, Budget 2026 underscores the government’s commitment to strengthening Malaysia’s infrastructure foundation, improving housing affordability, and steering the nation toward a more sustainable and resilient green economy.
Visit the original news report here: EdgeProp – Budget 2026: RM 419.2 billion tabled, focusing on infrastructure, civil servant housing and green transition