KUALA LUMPUR, MALAYSIA Oct 10, 2025 – Prime Minister and Finance Minister Dato’ Seri Anwar Ibrahim unveiled the fourth MADANI Budget today in Parliament, channeling a whopping RM470 billion towards advancing public welfare initiatives while fueling the nation’s development agenda.
In his tabling speech on Friday, Anwar highlighted the budget’s focus on uplifting vulnerable groups and driving economic progress, describing it as a blueprint for inclusive growth. “This budget allocates RM470 billion to continuously implement various people’s welfare initiatives, alongside accelerating national development,” he stated, emphasizing its people-centric approach.
Key measures announced include a broad spectrum of support for education, healthcare, agriculture, and regional equity, alongside fiscal adjustments to promote healthier lifestyles. Among the standout provisions:
– Education and student relief: Free tertiary education at public institutions (IPTA) for low-income families, coupled with exemptions on PTPTN loan repayments for low- and middle-income households to ease financial burdens on young graduates.
– Cash assistance expansions : Nine million recipients of the Single Index Registration (STR) will receive monthly SARA aid of up to RM1,200 annually. The SARA for All program continues with RM100 monthly payments to 22 million adult Malaysians, ensuring widespread support amid rising living costs.
– Public sector enhancements : Civil servants to benefit from salary hikes under the Public Sector Salary Adjustment Scheme (SSPA) Phase 2, plus a one-off RM500 special financial assistance to boost morale and spending power.
– Healthcare bolstering.: Permanent absorption of 4,500 contract doctors into the civil service, with a 40% increase in On-Call Duty Allowance (ETAP) to retain talent and improve service delivery.
– Agricultural support : Paddy farmers to receive up to RM4,300 per hectare per season, reinforcing food security and rural livelihoods.
– Skills development push : RM7.9 billion dedicated to Technical and Vocational Education and Training (TVET), prioritizing high-growth sectors like artificial intelligence (AI), semiconductors, electric vehicles (EV), and maritime industries to prepare the workforce for future jobs.
– Regional development focus : A total of RM12.9 billion for Sabah (RM6.9 billion) and Sarawak (RM6 billion), underscoring commitments to balanced growth under the Malaysia Agreement 1963 (MA63).
– Infrastructure resilience : RM2.2 billion for 43 flood mitigation projects nationwide to combat climate challenges and protect communities.
– Religious and cultural upliftment : RM2.6 billion allocated to enhance the dignity of Islamic da’wah efforts, promoting spiritual and communal harmony.
To promote public health, the budget introduces increases in excise duties: a hike on cigarette products and a 10% rise on alcohol, aimed at reducing consumption while generating revenue for social programs.
Anwar wrapped up his address by reaffirming the MADANI framework’s core principles of sustainability and equity, positioning the budget as a catalyst for a more prosperous Malaysia. The full details are set for further parliamentary debate in the coming days.
