KUALA LUMPUR – Education once again takes centre stage in Malaysia’s national spending plan, as Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim unveiled the record RM470 billion Budget 2026 in Parliament today, a significant increase from last year’s RM421 billion allocation.
The Ministry of Education remains the largest beneficiary, with a budget of RM66.2 billion, up from RM64.1 billion in 2025.
Meanwhile, the Higher Education Ministry will receive RM18.6 billion, an increase from RM18 billion, underscoring the government’s continued focus on education as a core pillar of national development.
Key measures outlined include the provision of free higher education for 5,800 students from low-income families studying at public universities, with a dedicated annual allocation of RM120 million starting in 2026.
Additionally, graduates from lower- and middle-income households who achieve First Class Honours will be exempt from repaying their PTPTN loans. This initiative is expected to benefit around 6,000 borrowers and will involve RM90 million annually.
The Health Ministry is the second-largest recipient of funding, with an allocation of RM46.5 billion, up from RM45.3 billion last year.
The extra funds will be directed towards enhancing the public healthcare system, with a focus on six key priorities: upgrading hospitals and clinics, addressing medical inflation, resolving issues related to contract doctors, securing drug supplies, and promoting healthier lifestyles under the National Healthy Malaysia Agenda.
As part of efforts to alleviate the cost of living, the government has allocated RM15 billion for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes — a marked increase from RM13 billion in 2025. The expanded allocation is aimed at providing further support to low- and middle-income groups as Malaysia moves toward more targeted subsidy mechanisms.
The sports sector also stands to gain significantly, with its funding more than doubling to RM580 million, up from RM230 million last year.
The funds will support high-performance programmes such as the Road to Gold (RTG) initiative, preparations for the 2027 SEA Games and Asean Para Games, empowerment of para and deaf athletes, as well as the upgrading of sports and school facilities across the country.
Budget 2026 further reinforces Malaysia’s commitment to innovation and technology, with continued investments in artificial intelligence (AI) and digital transformation as part of the 13th Malaysia Plan.
These initiatives are aimed at boosting national productivity, enhancing competitiveness, and future-proofing Malaysia’s workforce.
Substantial development funding is also earmarked for Sabah and Sarawak, particularly for the improvement of rural infrastructure, schools, and healthcare access. This ensures that both states remain integral to Malaysia’s broader growth and equity agenda.
Budget 2026 sends a clear signal that human capital development and social wellbeing are central to the Madani government’s vision, with significant investments in education, healthcare, and sports aimed at building a stronger, fairer, and more resilient Malaysia. – October 10, 2025