- Budget 2026 is full of freebies and no new taxes
- Malaysia is looking to sell its chips to Brazil and India
- PM Anwar was a no-show at Trump’s Peace in the Middle East announcement
IN MALAYSIA
Budget 2026 Analysis
The recently announced Budget 2026 is a mix of two main themes – fiscal discipline and populist measures. On the fiscal discipline side, Putrajaya will increase taxes on selected vices – raising the excise duty on cigarettes by 2 sen per stick, and an increase of 10% on liquor. However, no new taxes will be introduced, which does not make sense if you want to embrace the whole ‘fiscal discipline’ philosophy. So, where is the money going to come from? Tadaaaaa, it will come from the country’s government-linked investment companies (GLICs), to the tune of RM50.8 bil (10.8% of the proposed spending of RM470 bil). Relying on GLICs is a huge red flag, as we have seen firsthand how political intervention in investment bodies can ruin the latter, such as what happened with Tabung Haji. The separation between the state and GLICs needs to be clear, and we should not treat GLICs akin to PETRONAS. Instead of introducing new taxes (which is the responsible way), now Putrajaya is looking at GLICs as the new cash cow. FYI, PETRONAS is set to deliver its lowest dividend to the government in nine years, at RM20 bil in 2026, down from RM32 bil last year.
Onto the announced populist measures, below are among the initiatives announced by PM Anwar –
- Sumbangan Tunai Rahmah (STR) + Sumbangan Asas Rahmah (SARA) total =RM15b: Main channel for direct cash aid.
- SARA for all 9 mil of STR recipients: RM100/month (RM1,200/year).
- Max SARA for hardcore poor (e‐Kasih poverty list): Up to RM200/month (RM2,400/year).
- One‐off SARA (Feb 2026): RM100 for 22 mil Malaysians (18+) for festive prep.
- Civil servants’ bonus (G56 & below): RM500 Special Financial Assistance (one-off bonus).
- Pensioners & veterans bonus: RM250 Special Financial Assistance (one-off bonus).
- Schooling assistance: RM150 for 5.2 mil government school students.
All in all, for the first budget of the 13th Malaysia Plan, it was underwhelming. Even the PDF Jedi master, Muhyiddin Yassin, was confused about the announced Budget 2026, as he thinks that the whole announcement could just be a PDF sent via email.
https://x.com/mardhea_oi/status/1976595561135603903
However, Malaysia will introduce the ASEAN Business Entity (ABE) status to support regional expansion and talent mobility, the Investor Pass offering 12-month multiple-entry visas, and the continuation of the Residence Pass-Talent Fast Track scheme, which will skyrocket our competitiveness in the region as an investment destination. Putrajaya’s push to the country from ‘Made in Malaysia’ to ‘Made by Malaysia’ semiconductor hub will be the flagship investment-related initiative, after previously allocating RM550 mil for semiconductor ecosystem development, RM500 mil in loans under the National Semiconductor Strategy (NSS), and RM180 mil for industrial development in AI and digital sectors.
And, of course, not to forget, border development is still on the national agenda. PM Anwar Ibrahim told the Parliament that projects such as the Bukit Kayu Hitam-Sadao Border Control and the introduction of new scanning technologies at this checkpoint in the RM2.7 bil special border economic zone dubbed Delapan, will be given more focus to drive up trade activities up north. Delapan especially, that is positioned as a major logistics and digital hub, will serve as a critical node in ASEAN supply chains, speeding up cargo clearance and boosting cross-border e-commerce. Okay dah habis promote Delapan ni, so, in a nut shell, the state of economic development in the North is looking great.
Source: https://www.nst.com.my/news/nation/2025/10/1294111/major-boost-northern-corridor-growth
Malaysia look towards Brazil and India
Malaysia is looking to wave the white flag and bid farewell to the US market, amidst intense US tariffs, and adopt the ‘pandang ke BRICS’ policy, in searching for new buyers of our chips. Quoting the Trade Deputy Minister, Liew Chin Tong, “We have to accept the fact that our dependence on the US as an export destination may one day end.” The talks with BRICS nations have been progressing well, as Malaysia was poised to sign a memorandum of cooperation with Brazil to collaborate on semiconductor development, and was pursuing a similar deal with India. Malaysia is the world’s sixth-largest exporter of semiconductors in the assembly, testing and packaging sector. Chips account for about 60% of the country’s annual electrical and electronics exports.
Look at the picture below, who was not there?
Yup, the answer is our own PM Anwar Ibrahim. Why?
PM Anwar clarified to the Parliament that the reason why Malaysia was not among the countries invited to the International Peace Summit in Sharm El-Sheikh, Egypt, was due to Malaysia’s conditional support for Trump’s 20-point peace plan. Under the first phase, Hamas will release all Israeli hostages (dead and alive), and in return, the Israeli forces will withdraw to the edge of the yellow line (below).
PM Anwar added that Malaysia’s condition for the peace plan must include a comprehensive solution that recognises Palestine as a sovereign state and guarantees the right of return for displaced Palestinians, which is still unclear under the new peace plan. Quoting PM Anwar,” The countries invited were those that fully supported the 20-point peace plan. Malaysia was not included because our support comes with reservations.” This peace plan could go either way – to be the best deal ever sealed by US President Donald Trump, or be the biggest betrayal of the state of Palestine.
For Your EYES Only
Is our school safe?
After the death of Zara Qairina in Sabah and the recent gang-rape of a girl in Melaka, now we are being shocked by the stabbing of a Form 4 student in a school in Bandar Utama, allegedly by a Form 2 student. According to the Inspector-General of Police Khalid Ismail, the boy stabbed the 16-year-old Form 4 female student to death, and he also stabbed other students as well. Since then, the suspect has been arrested by the police. Apparently, the suspect did what he did because his romantic advance was rejected.
In a related matter, Khalid Ismail also revealed that the bullying cases in schools have increased by more than 68%, from 3,883 bullying cases in 2022 to 6,528 cases in 2023. Mind you, that these were only the reported cases, according to the Education Ministry’s Student Discipline Management System (SSDM). Last year, the number of cases increased to 7,681 cases, and most of the reported incidents occurred in secondary schools. It does require a village to raise a child. It is lazy to point the blame at the teacher, as teachers are only there for at most 8 hours of a child’s daily life. Who is responsible for the remaining 16 hours? – it is the community and the parents. What happened in Netflix’s Adolescence has now become a reality. Arguably, there may be enough real-life materials to inspire a sequel to the Netflix movie.
