Big Beautiful Budget

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Public confidence in Prime Minister Anwar Ibrahim’s leadership has grown steadily since he took office. Many see a government that is more focused, organised and grounded than before.
After years of political turbulence and economic strain, the sense of direction has returned. The prime minister’s experience is beginning to show results, not through promises, but through consistency. Budget 2026, totalling RM419 billion, reflects that discipline.
Of this amount, RM338.2 billion is for operating expenditure and RM81 billion for development spending.
Another RM30 billion from government-linked investment companies, RM10 billion from public-private partnerships and RM10.8 billion from statutory bodies and GLCs will support various programmes.
The fiscal deficit is expected to fall to 3.5 percent from 3.8 percent in 2025, while public revenue is projected to increase to RM343.1 billion from RM334.1 billion. Economic growth is forecast between 4.0 and 4.5 percent in 2026.
The Defence Ministry receives RM21.7 billion, with RM6 billion allocated specifically for military asset procurement.
This includes two multi-role support ships (MRSS), one multi-purpose command platform (MPCP), the third batch of littoral mission ships (LMS), the second batch of FA-50 fighter aircraft and three air defence systems covering medium, short and very short range.
Ten new Cendana Auto FFR 4x4 vehicles with jamming capabilities will also be delivered to the Malaysian Battalion (Malbatt).
Meanwhile, the Home Ministry was allocated RM21.2 billion to maintain security and order.
In an increasingly uncertain world, where regional tension and global rivalry affect small nations directly, these investments are not excess spending but necessary preparation.
A strong defence ensures national stability, which in turn protects economic strength.
Tangible benefits for rakyat
Education and healthcare continue to anchor the government’s priorities.
The Education Ministry receives RM66.2 billion, while the Health Ministry is allocated RM46.5 billion. These allocations are practical and necessary.
Better schools and hospitals create stability in people’s lives, and that stability strengthens national progress.
Sabah and Sarawak receive record development allocations of RM6.9 billion and RM6 billion, marking a more balanced approach to national growth.
Nearly RM2.4 billion is channelled to Felda, Risda and Felcra to support rural productivity and income.
For the rakyat, the benefits are tangible.
Public servants in grade 56 and below will receive RM500 in special financial aid, while pensioners and veterans receive RM250.
The Rahmah Cash Aid (STR) and Rahmah Necessities Aid (Sara) programmes continue, with eligible households receiving up to RM4,600 a year.
Families benefit from tax reliefs for childcare, housing and health expenses, while low-income groups gain steady support through targeted subsidies and cash assistance.
Working Malaysians will also see improvements in welfare and protection. Gig workers continue to receive matching contributions of up to RM600 under i-Saraan Plus.
Contributions to the Self-Employed Social Security Scheme are subsidised by 70 percent in the first year and 50 percent in the second.
Small and medium enterprises can claim tax deductions of up to RM500,000 for renovation and certified training in artificial intelligence and cybersecurity.
Funds for infrastructure
Infrastructure remains central to long-term planning. RM13 billion is allocated for water projects, RM2.5 billion for federal road maintenance and RM5.6 billion through Marris grants for state roads.
RM2 billion funds the Madani Submarine Cable Connection linking Johor, Sarawak and Sabah, while another RM2 billion goes to building a national AI cloud network.
Renewable energy projects under the LSS6 programme are expected to attract RM6 billion in private investment.
Public confidence is improving because the government is showing restraint and accountability. The cabinet continues its 20 percent pay cut, reflecting leadership through example.
Judges receive a 30 percent salary adjustment, the first since 2015, while civil servants benefit from financial assistance that helps offset cost-of-living pressures.
Addressing problems
Some ministries remain slow in execution, and not all initiatives reach the ground quickly.
Yet the difference today is that problems are reviewed and corrected rather than ignored. The willingness to adjust and demand performance is building back credibility within the government.
Budget 2026 is not written to impress. It is built to function. It focuses on practical management, fairness and results that can be measured.
When people see policies reaching their communities, confidence grows naturally.
After years of instability, Malaysia is again being managed with order and consistency.
The direction is clear, the tone is firm, and the delivery is improving.
Budget 2026 is a statement that discipline, responsibility and preparedness are now central to national progress.- Mkini

MAHATHIR MOHD RAIS is a former Federal Territories Bersatu and Perikatan Nasional secretary.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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