KUALA LUMPUR: Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled the 2025 Budget in Dewan Rakyat this afternoon. 

RM421 billion has been set aside for Budget 2025, 3.3 per cent higher than the revised Budget 2024 estimate of RM407.5 billion.

RM335 billion has been set aside for operating expenditure and RM86 billion for development expenditure, not including RM2 billion for contingency.

The following are some of the highlights of the 2025 Budget:

■ Up to RM7,000 individual tax relief on housing loan interest payments to encourage first home ownership.

■ Chinese new villages to receive RM84 million in allocations to enhance infrastructure and community services.

■ Excise duty on sugary drinks to be raised in phases by up to 40 sen per litre.

■ Ministry of Higher Education allocations to be raised from RM16.3 billion to RM18 billion, while Ministry of Education allocations from RM58.7 billion to RM64.1 billion.

■ Ministry of Health to receive second highest budget allocation of RM45.3 billion, up from RM41.2 billion in 2024.

■ Compulsory EPF contributions for foreign workers to be implemented in phases.

■ Monthly minimum wage to be raised from RM1,500 to RM1,700 from next February. The measure can be deferred for six months for employers with fewer than five employees.

■ The National Energy Transition Facilitation Fund allocation will be raised from RM100 million to RM300 million.

■ RM550 million to promote Visit Malaysia Year 2026.

■ Businesses adopting e-invoicing will be eligible for accelerated capital allowances.

■ Multi-level levy mechanism on foreign worker recruitments by early 2025.

■ RM250 million to repair dangerous slopes across the country, RM21 million to curb sinkholes in Perak, Kedah and Perlis, and RM10 million to carry out geotechnical study of the structure of the soil in the main roads around Kuala Lumpur’s Golden Triangle.

■ iPayment cashless payment platform will be used at all government counters from next year.

■ Parliamentary allocations to be increased from RM166 million to RM180 million to empower the roles of Public Accounts Committee, and Special Select Committees.

■ RM60 million to upgrade judicial infrastructure including development of an electronic judicial system that supports the digital agenda.

■ Higher MACC allocations from RM338 million to RM360 million.

■ 2 per cent tax to be imposed on dividend income exceeding RM100,000 from assessment year 2025.

■ Targeted subsidy in public hospitals to exclude T15.

■ Blanket subsidy for RON95 to be rationalised in mid-2025.

■ SST to be implemented progressively from May 1 next year in a way not to burden the public.

■ 2024 GDP growth target will be raised to 4.8 – 5.3 per cent from the initial target of 4 – 5 per cent, while 2025 growth target is maintained at 4.5 – 5.5 per cent.