KUALA LUMPUR, Oct 19 — Prime Minister Datuk Seri Anwar Ibrahim announced a record RM421 billion Budget 2025 yesterday, which included a focus on improving social welfare for individuals and households.
This budget aims to address pressing concerns surrounding the cost of living and offer a robust framework of cash assistance, welfare benefits, and tax relief measures specifically designed for households.
Among notable initiatives include the significant increase in cash aid allocations and enhanced welfare support for low-income families.
Here are highlights of Budget 2025 that will directly benefit Malaysian families and individuals:
Sumbangan Tunai Rahmah (STR)
- Allocation increased to RM13 billion (up from RM10 billion), benefitting 9 million recipients (60 per cent of the adult population).
- Households can receive up to RM4,600, a notable increase from RM3,700 in previous years.
Sumbangan Asas Rahmah (SARA)
- Monthly cash aid set at RM100 for 4.1 million households, an increase from 700,000 this year.
- Funds credited to MyKad for purchasing essentials at over 600 participating stores.
Enhanced welfare assistance
- Monthly aid for senior citizens raised from RM500 to RM600.
- Child assistance for low-income families increased to RM250 per child (aged 6 and below) and RM200 (aged 7-18), up from RM200 and RM150, respectively.
Minimum wage increase
- The minimum wage will rise from RM1,500 to RM1,700 starting February 2025.
- Businesses with fewer than five employees were granted a 6-month extension.
Targeted tax reliefs
- Increased income tax deductions for education and medical insurance premiums to RM4,000.
- Medical expense deductions increased to RM10,000.
- First-time homebuyers to receive tax relief of up to RM7,000 on housing loan interest for properties up to RM750,000.
Subsidies and support schemes
- Continued commitment to petrol and diesel subsidies, benefiting 85 per cent of the population.
- Additional support from revenue generated by special number plates to aid underprivileged groups.
