Prime Minister Anwar Ibrahim said the RM419.20 billion budget comprises RM338.2 billion in operating expenditure and RM81 billion in development expenditure.

Anwar, who is also the finance minister, also announced that government-linked investment companies (GLICs) will contribute RM30 billion in investments, with an additional RM10 billion from public-private partnerships, and RM10.8 billion from federal statutory bodies and MoF Inc.

Here are the other key highlights of the national budget:

• Adult Malaysians will receive another round of RM100 Sumbangan Asas Rahmah (SARA) aid in mid-February.
• A one-off RM500 aid for civil servants Grade 56 and below, including contract workers, will be distributed in early March. A special RM250 aid will be given to all pensioners, including veterans (both pension-receiving and non-pensioned) in early March.
• The government will give a 50% toll discount in conjunction with Deepavali on Oct 18 and 19.
• RM60 million will be set aside by the government and industry players to provide an affordable basic health insurance product for Malaysians.
• The government will offer incentives such as expanded income tax rebates to encourage Malaysians to obtain insurance coverage.
• The National Higher Education Fund Corporation (PTPTN) will offer free higher education to 5,800 students from low-income families in public universities next year.
• PTPTN loan repayments will be waived for 6,000 first-class honours graduates from low- and middle-income families, costing RM90 million.
• The National Service Training Programme (PLKN) will be fully revived by 2027, with a pilot phase at the higher education level.
• RM7.9 billion will be allocated for Technical and Vocational Education and Training (TVET) to meet demand for skilled local talent.
• RM6 billion will be allocated to provide education opportunities for Bumiputera students next year.
• Prasarana Malaysia Bhd will spend RM1 billion to replace 26 train units on the Kelana Jaya LRT line.
• RM200 million will be allocated for stage bus services, including new routes and additional buses in Johor Bahru ahead of the Johor Bahru–Singapore RTS Link launch.
• RM2.3 billion will be allocated for airport upgrades in Penang, Sarawak and Sabah.
• RM210 million will go to the Malaysian Communications and Multimedia Commission to develop disaster early warning systems.
• RM2.62 billion will be allocated for agriculture subsidies, benefitting farmers through padi cultivation, fertiliser, seed, and padi production incentives.
• The government will make RM50 billion in loans and guarantees available next year to support local entrepreneurs, including RM2.5 billion in microfinancing via Bank Simpanan Nasional and Tekun Nasional.
• The validity of the multiple-entry travel pass for foreign investors will be extended from six months to 12 months, with Mida playing a more proactive role.
• The government will introduce Asean Business Entity (ABE) status for public-listed companies operating in Asean, enhancing talent mobility across member states.
• RM10 billion in government guarantees will be earmarked for Bumiputera entrepreneurs, while RM2.4 billion will go to G1-G4 Bumiputera contractors.
• RM700 million has been allocated to boost tourism, including RM500 million for the Visit Malaysia 2026 campaign and RM60 million for promotion, marketing, and events.
• Malaysians will receive up to RM1,000 in tax rebates on entry fees to local tourist attractions or cultural programmes.
• Sabah and Sarawak will receive record allocations:RM6.9 billion for Sabah, and RM6 billion for Sarawak. Both are increases from RM6.7 billion and RM5.9 billion, respectively, in the current year.
• The government will introduce “lemon law” provisions, possibly within the Consumer Credit Act, to protect consumers from defective vehicle purchases.