The 2025 Malaysian Budget introduces various aid programs and initiatives to support the welfare of citizens, stimulate economic growth, and ensure sustainable development. Below are the key highlights of the budget’s aid initiatives:
1. Sumbangan Tunai Rahmah (STR)
- Amount: RM600 to RM2,500 depending on eligibility.
- Target Groups: Low- and middle-income groups (B40 and M40).
- Purpose: To ease the cost of living and support basic household needs.
2. Education Assistance
- Total Allocation:
- RM2 billion for Boarding School Meal Assistance (BMA).
- RM870 million for the Supplementary Food Program (RMT).
- Benefit: Provides free meals to students from low-income families to improve well-being and focus in education.
3. Subsidies and Other Assistance
- Total Allocation: RM58.2 billion for subsidies, incentives, and aid programs.
- Focus:
- Electricity and fuel subsidies to be gradually restructured to target only eligible groups, reducing fiscal wastage.
4. Support for Small and Medium Enterprises (SMEs)
- Funding:
- RM4 billion via Bank Pembangunan Malaysia for infrastructure, digitalization, logistics, tourism, and renewable energy sectors.
- RM3.2 billion for small loans through BSN and TEKUN Nasional, supporting small traders, including marginalized communities.
- Objective: Enhance SME competitiveness and economic contributions.
5. Fuel Subsidy Reform
- Implementation: Subsidy for RON95 petrol will be targeted to eligible individuals by mid-2025.
- Goal: Reduce government spending and ensure efficient use of resources.
6. Tax Relief for Individuals
- Initiatives:
- Various tax reliefs for education, healthcare, and other essential expenses to reduce the tax burden on individuals.
7. Support for the Indian Community
- Allocation: RM130 million for programs aimed at improving social welfare, human capital development, and economic opportunities within the Indian community.
8. Mid-Tier Company Program
- Funding: RM1 billion by Khazanah Nasional to strengthen the capabilities of mid-sized companies.
- Objective: Increase competitiveness and market presence.
9. Food Security
- Loan Facility: RM200 million via Agrobank to support agro-food entrepreneurs in promoting sustainable farming and ensuring stable food supply.
10. Cooperative Support Programs
- Funding: RM100 million through the Cooperative Commission of Malaysia to assist cooperatives in economic activities.
- Purpose: Enhance the role of cooperatives in local economic development.
Key Takeaways
- Focus on the Vulnerable: STR and education programs aim to directly benefit the B40 and M40 groups.
- Economic Growth: SME financing and cooperative support drive sustainable economic progress.
- Fiscal Sustainability: Reforms in subsidies and targeted fuel assistance aim to balance government spending.
The 2025 budget reflects Malaysia’s commitment to supporting its citizens while promoting fiscal responsibility and long-term economic resilience.