Category: News

What’s just happened
On October 10, 2025, Prime Minister Anwar Ibrahim (also Finance Minister) presented Malaysia’s Budget 2026 in Parliament. The budget is framed as the Fourth Madani Budget: People’s Budget (Belanjawan Madani Keempat: Belanjawan Rakyat).

The big picture

• Total allocation: RM 470 billion (up ~11.6 % from Budget 2025) 
• Operating outlays and development spending both expanded, with emphasis on social aids, infrastructure, and growth sectors. 
• But some analysts note a tighter underlying envelope: core budget estimates suggest RM 419.2 billion, excluding contingency funds — marking a slight contraction vs. previous. 

What’s in It for the People (and the Economy)

1. Cash handouts & social assistance

• RM 100 one-off aid for all Malaysians aged 18+ (22 million people) 
• The Sara / Sumbangan Asas Rahmah (STR) payout will be advanced to Oct 18, with RM 100 credit via MyKad.
• Childcare tax reliefs expanded: up to RM 3,000 relief now extended to children up to age 12. 
• Legal aid for 5,000 poor single mothers; expanded income tax relief for admission fees to local tourism and cultural sites (up to RM 1,000)

2. Infrastructure & development push

• Sabah, Sarawak receives higher development allocations; RM 48 billion for highway & transport works.
• Flood mitigation: RM 2.2 billion for 43 high-priority projects, plus slope, drainage, and preventive maintenance.
• “Cash-for-clunkers” scheme: matching grant up to RM 4,000 for owners scrapping > 20-year-old vehicles and purchasing new local models.

3. Business, tech, and sector support

• GLIC / GLCs mobilize RM 16.5 billion in investment; GEAR-UP to raise domestic investment from RM 25 → RM 30 billion.
• SME & Bumiputera aid: RM 50 billion in loan guarantees; special allocations for Bumiputera contractors (G1–G4), startups, and equity programmes.
• Sovereign AI Cloud: RM 2 billion via MCMC; digital accelerator grants and Green Asset Incentives.

4. Tax, subsidy & regulatory tweaks

• Excise duty on alcoholic beverages raised 10% (effective Nov 1, 2025)
• Carbon tax introduced in 2026, initially targeting iron, steel, energy sectors.
• Vehicle tax exemptions in Langkawi / Labuan now capped to vehicles valued under RM 300,000 from Jan 1, 2026.
• Stamp duty relief for first-time homes (≤ RM 500,000) extended to 2027; non-citizen residential property transfer duty raised from 4 % → 8 %.
• “Lemon Law” elements will be added to Consumer Protection Act to protect buyers.

Fiscal Discipline & Risks

Deficit & revenue

• The government aims to narrow the fiscal deficit to ~3.4–3.6 % of GDP, from ~3.8 % this year. 
• Revenue target: RM 343.1 billion, up from RM 334.1 billion. 
• The state oil & gas giant Petronas is expected to contribute only RM 20–25 billion in dividends — a decline from RM 32 billion this year — amid weak oil prices. 

Caution over big moves

• Analysts say the budget reflects a cautious, disciplined approach, balancing between pro-people measures and fiscal reform.
• Some observers note that despite the headline RM 470 billion, the “real” core allocations present a leaner stance.
• Anwar has also paused major new taxes or sweeping subsidy cuts for now, likely to avoid public backlash.

External and structural risks

• Global oil price volatility could pressure Petronas revenues and ripple into federal coffers.
• Trade tensions and tariffs, especially U.S. 19 % tariffs on many Malaysian exports, pose external demand risks.
• Efficient implementation, leakages, and coordination among federal, state entities remain perennial challenges.

Why It Matters (and What to Watch)

• Signal of continuity + prudence: Budget 2026 suggests the Anwar government intends to maintain a pro-growth, pro-rakyat posture while avoiding aggressive fiscal pivots.
• Welfare support under strain: As cost of living pressures remain high, handouts and subsidies are critical for public confidence.
• Investment pivot: Big bets on digital, AI, green transition, SME growth, and GLIC/GLC leverage could reshape Malaysia’s economic trajectory.
• Test ahead: The next test will be tax collection, public debt sustainability, and whether promised reforms translate into real-world impact.

Watch for

• How carbon tax is rolled out and which sectors are impacted
• Whether proposed excise & duty increases spark inflationary pressure
• Execution of infrastructure / climate adaptation schemes
• Petronas dividend trajectory in a low-oil price era

What’s happening

• Sabah is headed for its 17th state election (PRN17). The current Sabah State Legislative Assembly must be dissolved and new polls held by 7 December 2025. 
• Recently, Chief Minister Hajiji Noor confirmed an electoral pact with Pakatan Harapan (PH), meaning GRS and PH will coordinate in the upcoming races.
• The date is not fixed yet, but Chief Minister Hajiji Noor has announced the dissolution of the Sabah State Assembly on 6 October, paving way for an election within 60 days.

Why it matters

• Autonomy, identity, and “Sabah for Sabahans.” Many analysts see this election as a referendum on Sabah’s autonomy within the Malaysian federation, particularly how strongly local parties can push for rights enshrined in the Malaysia Agreement 1963 (MA63). 
• Test of federal–state relations. The election offers a window into how federal-level parties and coalitions — especially the unity government led by Prime Minister Anwar Ibrahim — will navigate the delicate balance of supporting state actors without undermining them. 
• Political fluidity and volatility. Sabah’s politics are known for defections, shifting coalitions, and “frog-hopping” of assembly members. Any government formed will need to manage internal cohesion. 
• Service delivery is under scrutiny. Voters in rural and semi-urban Sabah often cite basic issues — unreliable water and power supply, poor roads, infrastructure backlogs — as chronic grievances.

The big picture: Context & backdrop

Historical volatility

Sabah’s electoral history is rife with party switching, abrupt coalitional shifts, and short-lived governments.

In the last election (2020), Gabungan Rakyat Sabah (GRS) secured 38 of 73 seats — a slim majority — while the Warisan Plus coalition won 32, and independents took the remainder.

Because of the tight margin, internal disagreements and shifts in allegiance have always been a risk to governance stability. 

Coalitions and key players

• GRS (Gabungan Rakyat Sabah). The incumbent coalition, constituted mainly of Sabah-based parties like Gagasan Rakyat Sabah (PGRS), Parti Bersatu Sabah (PBS), SAPP, and others.
• PH (Pakatan Harapan). Though more influential in Peninsular Malaysia, PH (through PKR, DAP, Amanah) has been aligned with GRS at the state level in recent years; the new pact formalizes that cooperation.
• WARISAN. The party founded by Mohd. Shafie Apdal remains a strong local opposition voice. Its narrative often centers on Sabah’s rights and state-centric governance.
• UMNO / BN, PN and others. Traditional national parties want footholds in Sabah. BN (via UMNO Sabah) still holds influence; Perikatan Nasional (PN) may seek contesting opportunities.
• Smaller / local parties. Many small Sabah-based parties may play kingmaker roles, particularly in close contests. 

Key issues shaping voter sentiment

1. Infrastructure and utilities. Problems like erratic electricity, piped water shortages, and poor road maintenance are perennial.
2. Development and inequality. Sabah is among Malaysia’s less developed states, and voters want to see progress in education, healthcare, rural connectivity, and economic opportunities. 
3. Autonomy, MA63, resource rights. Sabahans often demand stronger enforcement of the Malaysia Agreement, local rights over natural resources and fiscal leeway. 
4. Political integrity & governance. Scandals, patronage, and shifting allegiances erode trust. Voters may reward parties seen as more consistent or principled.
5. Electoral pacts versus competition. The new GRS–PH pact may reduce vote splitting but creates tension between cooperation and identity politics.
6. Undecided voters. Recent polls show a large share of the electorate remains undecided — indicating that campaigns, ground work, and last-minute swings could matter. 

What to watch

Bottom line

The upcoming Sabah state election is more than a routine poll. It’s a crucible for Sabah’s identity, autonomy, and relationship with federal Malaysia. The coalitions that emerge, their stability, and how they execute governance afterward may reshape Sabah’s political trajectory.

Check out the stakes, players and the battle for the 73 seats.

What’s happening

The Malaysian government will fully discontinue its egg subsidy program starting August 1, 2025, ending long-standing price support measures for consumers and producers.

Why it matters

Eggs are a staple in Malaysian households, and the removal of subsidies could impact consumer prices and household food security—particularly among lower-income groups. The move signals the government’s confidence in a stabilised supply chain and production cost environment.

Details

• Effective May 1, the current subsidy of RM0.10 per egg will be halved to RM0.05.
• All price controls on eggs will be lifted in August.
• The decision was made following improvements in production stability and cost management within the egg industry.

What they’re saying

“The industry has shown consistent supply and competitive pricing, especially during the recent Hari Raya Aidilfitri festive season,” said the Ministry of Agriculture and Food Security (KPKM) in a statement.
They added that the industry is committed to introducing special-grade eggs at affordable prices to offset market changes.

Between the lines

While the government steps back from direct price intervention, it plans to soften the impact by:

• Expanding affordable access through initiatives like Agro Madani and Rahmah Sales, available at FAMA and LPP outlets nationwide.
• Enhancing enforcement against profiteering and price manipulation via the Price Control and Anti-Profiteering Act 2011 (Akhap 2011).

What’s next

As August nears, the focus will shift to monitoring retail egg prices, ensuring consumer protection, and watching how the market adapts to the removal of subsidies.

The Ministry of Investment, Trade and Industry (MITI) confirmed it is investigating claims circulating on social media alleging unauthorized use of a creative agency’s concept for the Malaysia Pavilion at Expo 2025 in Osaka, Japan, without appropriate credit or compensation.

These claims gained widespread attention following a viral Instagram post by user Fey Ilyas, prompting MITI’s swift response.

“MITI is currently undertaking a detailed investigation to gather and verify all pertinent facts concerning the allegations shared on social media,” the ministry stated briefly.

“We regard this matter with utmost seriousness and reserve all legal rights. MITI remains dedicated to maintaining the highest standards of integrity and compliance. We will take necessary legal actions if warranted,” the statement continued.

View this post on Instagram

A post shared by fey ilyas (@feythehuman)

Although MITI did not explicitly name any individual or agency, Fey’s widely shared Instagram post—under the username @feythehuman—directly accused the government of adopting the agency’s concept, theme, narrative, and architectural vision for the Malaysia Pavilion without giving due credit or remuneration.

In his post, Fey detailed the substantial effort by his agency, stating they had “helped secure approvals, brought in world-class partners, and shaped the foundation” for Malaysia’s significant presence at the global expo.

“As a small company, even receiving proper acknowledgement for a project of this scale would have helped us build our reputation and open doors to new opportunities. Instead, our work was taken — used without credit or compensation,” Fey wrote.

He further alleged his agency faced pressure to remain silent, with implications that speaking out could jeopardize future business prospects.

“But what’s the point of future work if it’s built on silence, exploitation, and fear?,” Fey questioned. “We chose to speak up. Because dignity is worth more than access.”

The upcoming by-election in Ayer Kuning, Perak, scheduled for April 26, 2025, has garnered significant attention as it could influence the political dynamics within the state and potentially at the national level.​

Background

The by-election was necessitated by the untimely passing of incumbent assemblyman Ishsam Shahruddin of Barisan Nasional (BN) on February 22, 2025. Ishsam had secured the seat in the 2022 state elections with a majority of 2,213 votes.

Candidates

The by-election features a three-cornered contest:​

• Dr. Mohamad Yusri Bakir (BN – UMNO): An Islamic education academic and Tapah UMNO Secretary. He aims to continue Ishsam’s legacy, focusing on educational development. ​
• Abdul Muhaimin Malek (PN – PAS): The Tapah PAS chairman, representing Perikatan Nasional. His candidacy reflects PN’s strategy to strengthen its presence in Perak. ​
• Bawani Kaniapan (PSM): A lawyer and PSM’s national deputy secretary-general. She previously contested the seat in 2022 and is backed by MUDA and PRM.

Campaign Highlights

The campaign period has been marked by several notable events:​

• High Early Voter Turnout: Early voting on April 22 saw a turnout of 93.4% among police personnel and their spouses, indicating strong voter engagement. 
• Asset Declaration Debate: While Bawani publicly declared her assets to promote transparency, Dr. Yusri declined to do so, stating he had already fulfilled necessary declarations upon his retirement from public service. 
• Allegations of Misuse of Government Resources: Electoral reform group Bersih raised concerns over alleged abuses, including the use of government machinery and facilities during the campaign. ​

Demographics and Significance

The Ayer Kuning constituency comprises 31,897 registered voters, with a demographic breakdown of approximately 55.6% Malay, 22% Chinese, 14.3% Indian, and 8.1% others. ​

The by-election is viewed as a litmus test for the unity government formed by BN and Pakatan Harapan (PH), especially in gauging public support ahead of the next general election.​

Looking Ahead

As polling day approaches, all eyes are on Ayer Kuning to see which candidate will emerge victorious and what the results will signify for Malaysia’s evolving political landscape.​

Driving the news

On April 2, 2025, U.S. President Donald Trump announced a series of “reciprocal” tariffs targeting numerous countries, including a 24% tariff on Malaysian imports, effective April 9. This action is part of a broader strategy to address trade imbalances and protect domestic industries.

Why it matters

The newly imposed tariffs are poised to significantly impact Malaysia’s export-driven economy, particularly sectors heavily reliant on the U.S. market. Industries such as electronics, machinery, and medical devices may face increased costs and reduced competitiveness.

The big picture

• Tariff Justification: The U.S. administration asserts that these tariffs are necessary to counteract what it perceives as unfair trade practices and to promote equitable trade relationships. ​
• Global Scope: Malaysia is among several nations affected by these measures. Notably, China faces a 34% tariff, the European Union 20%, and Vietnam 46%.
• Economic Implications: Analysts warn that such tariffs could disrupt global supply chains, elevate consumer prices, and potentially trigger retaliatory actions from affected countries. ​

Between the lines

The U.S. claims that Malaysia imposes a 47% tariff on American goods, justifying the 24% reciprocal tariff. This move underscores the administration’s focus on addressing perceived disparities in international trade policies. ​

What’s next

The Malaysian government and business community are expected to engage in discussions to assess the impact of these tariffs and explore potential responses. The situation remains fluid, with the possibility of negotiations or countermeasures in the coming weeks.​

What’s happening

Malaysia’s Parti Keadilan Rakyat (PKR), the linchpin of the ruling coalition, is gearing up for its internal elections in May 2025, a contest that could shape the party’s direction—and the nation’s political future—as it navigates economic headwinds and a restless electorate. With a final list of candidates for its 222 branches nationwide set to drop Monday, the stakes are high for a party that’s been a standard-bearer for reform since its founding in 1999.

Why this matters

The internal polls are more than just party housekeeping — they’re a barometer of grassroots support, a test of internal unity, and a preview of how PKR might perform in the next general election.

Context to know

• Leadership Watch: There’s speculation about whether top positions, including the presidency and deputy presidency, will be contested. Anwar has chosen to remain neutral, emphasizing the party’s democratic process.
• Rule Changes: In 2024, PKR adopted key amendments, introducing ethnic and gender quotas, increasing delegate representation, and aiming for a more inclusive and transparent election.
• Factional Undercurrents: Observers note strategic moves within party ranks. Leaders like Amirudin Shari are under the spotlight as internal alliances and rivalries subtly shape the road to May.
• Reformasi Reloaded: PKR was born out of the 1998 reformasi movement, and its base still hungers for that spirit. Candidates like Ramanan are leaning hard into this narrative, but they’ll need to prove it’s more than rhetoric as voters grow skeptical of promises unfulfilled.
• Coalition Dynamics: PKR’s dominance in the unity government isn’t guaranteed. A messy election could weaken Anwar’s hand, especially with coalition partners watching closely and opposition parties like Perikatan Nasional circling.

Behind the scenes

The party is juggling governance and grassroots politics — trying to maintain stability at the federal level while energizing its base and managing internal ambition.

What’s next

PKR’s May election will be closely watched for signals on its readiness for GE16, the strength of Anwar’s leadership, and how the party plans to sustain reformist momentum in government and beyond.

Bersatu has unveiled the appointment of two senior leaders for the 2024-2027 term, with former Wanita Bersatu chief Rina Harun and former Putrajaya Umno deputy chief Tun Faisal Ismail Aziz taking on significant roles within the party.

Starting today, Rina Harun will serve as the party’s new treasurer-general, while Tun Faisal Ismail Aziz assumes the position of information chief.

Confirming earlier reports, Selangor Bersatu chairman Azmin Ali has also been appointed as the new secretary-general of the party.

Bersatu president Muhyiddin Yassin issued a statement, stating that these appointments were made in accordance with Article 13.9 of the party’s constitution.

“I am confident that they will carry out their responsibilities in line with the principles set out in the Bersatu constitution, with integrity, efficiency, and accountability,” he said.

Muhyiddin also expressed his appreciation to the outgoing office bearers – Salleh Bajuri (former treasurer-general), Razali Idris (former information chief), and Hamzah Zainudin (former secretary-general) – for their valuable contributions to the party.

It was previously reported that Rina Harun chose not to defend her position as Wanita Bersatu chief in the party elections held on November 2, with Mas Ermieyati Samsudin being elected unopposed for the role.

In a separate development, Azmin Ali was initially reported to have declined Muhyiddin’s offer for the secretary-general position, citing his commitment to leading Selangor Perikatan Nasional and focusing on capturing the state in the upcoming elections.

Azmin did not participate in the recent Bersatu party elections, amid speculation that he would take over from Hamzah Zainudin as the new secretary-general.

Muhyiddin Yassin retained the presidency of Bersatu uncontested in the party polls, while Hamzah Zainudin was also unchallenged in his bid for deputy president.