2025

BUDGET
NEWSLETTER
(YYC EDITION)
This Newsletter is prepared based on Budget 2025 speech as
announced on 18 October 2024
TABLE OF
CONTENT

01. Economic Outlook

02. Individual Tax

03. Business
04. Tax Incentives

05. Indirect Tax

06. Stamp Duty

07. Labuan

08. Grants

09. Financing Package

10. Others
 FOREWORD
“ With the upcoming changes in
Budget 2025, business owners
need to plan ahead and work
harder to navigate new costs and

”
leverage emerging opportunities.
-Datin Shin Yap
YYC CEO & Finance Expert

The Malaysia Madani Budget 2025, unveiled by Access to Financing and Incentives
Prime Minister Datuk Seri Anwar Ibrahim, brings With RM 40 billion allocated for SME loans
significant changes for SMEs. As a leading and RM 50 million in digital grants, the
business advisory firm, YYC highlights five key budget provides crucial financial support.
measures that will directly impact business Tax incentives in sectors like technology and
owners in the coming year. manufacturing further encourage growth
and innovation.
2% Tax On Dividend Income
Starting from the YA 2025, individual Access to Financing and Incentives
shareholders receiving over RM 100,000 in
dividend income will face a 2% dividend tax. This The Johor-Singapore Special Economic
will impact high-earning shareholders, reducing Zone (JSSEZ) and the transformation of
post-tax returns from investments in Forest City into a Duty-Free Island and
companies. Financial Hub may create opportunities for
SMEs in areas such as real estate, tourism,
and cross-border trade. Businesses located
Increase In Minimum Wage in or near these zones may benefit from
The increase in the minimum wage to RM 1,700 increased economic activity and foreign
per month, effective from February 2025, comes investment, opening new markets and
as a surprise to many small and medium potential growth avenues. Though details
enterprises (SMEs). While small employers with have not been fully announced yet, we
fewer than five employees have a six-month believe it will create a lot of opportunities for
extension until August 2025, the wage hike business owners.
represents a significant jump that will strain the
payroll budgets of many smaller enterprises.
Closing
Incentives for First Home Buyers In these dynamic times, staying informed
and adaptable is key to thriving. As your
Real estate businesses can benefit from trusted business advisor, YYC is committed
increased demand due to the government's to supporting you every step of the way.
homeownership incentives, which offer tax Reach out to us for personalized advice on
reliefs on home loan interest and government- how best to navigate the 2025 Budget and
backed loan guarantees. Developers and real turn its provisions into growth opportunities
estate professionals may see more first-time for your business.
buyers entering the market, spurred by these
financial benefits. This will benefit first-time
home buyers as they are entitled to a RM 7,000
tax relief on housing loan interest payment for
property prices up to RM 500,000 and entitled to
RM 5,000 tax relief for property prices more than
RM 500,000 to RM 750,000. The other industries
that will benefit from this announcement
include those in construction, hardware,
furniture and related industries.
01
ECONOMIC
OUTLOOK
01 Economic Outlook

Total Government Revenue Total Allocated Fund

The Government revenue collection for The total allocation for the Third MADANI
2024 is expected to see an increase, Budget 2025 is RM421 billion.
with projections indicating a rise from Key allocation highlights:
RM308 billion in 2023 to RM322 billion in ❑ RM335 billion for operating expenses
2024, and further growth to RM340 ❑ RM86 billion for development
billion in 2025. expenditure

339,706

In RM (million)
322,050
314,959
In RM (million)

294,357
233,752

2021 2022 2023 2024 2025

Operating 231,516 292,693 311,267 321,500 335,000

Development 64,257 71,574 96,090 86,000 86,000

GDP Growth Fiscal Deficit

For 2025, the national economy is The government aims to reduce the
projected to grow by 4.5% to 5.5%, fiscal deficit further, targeting 3.8% of
supported by the Third MADANI Budget GDP in 2025, with a long-term goal of
2025 initiatives. reaching 3%.

GDP Growth Fiscal Deficit

02
INDIVIDUAL
TAX
02 Individual Tax
02 INDIVIDUAL TAX

Childcare Relief

• Individual income tax relief up to RM3,000 for childcare centres and

kindergartens will be extended until year of assessment 2027.

Skim Simpanan Pendidikan Nasional Relief

• The Skim Simpanan Pendidikan Nasional (SSPN) tax relief up to RM8,000

will be extended until year of assessment 2027.

Education and Medical Insurance Relief

• Education and medical insurance relief will be increased to RM4,000.

• Starting from the year of assessment 2025.

Private Retirement Scheme Relief

• Deferred Annuity and Private Retirement Scheme (PRS) tax relief up to

RM 3,000 will be extended until year of assessment 2030.

Disabled Individual Relief

• Further tax relief for disabled individual will be increased to RM7,000.

• Further tax relief for individual with a disabled spouse will be increased
to RM6,000.
• Further tax relief for individual with unmarried disabled children will
be increased to RM8,000.
• Starting from year of assessment 2025.
Example of the CATEGORIES / TYPE CONTENT
02 Individual Tax
02 INDIVIDUAL TAX

Housing Loan Interest Relief

• Tax relief on the interest payments for the first residential home loan:

No. House Price Total Relief / Year

1. Up to RM 500,000 RM 7,000*

2. Above RM 500,000 to RM 750,000 RM 5,000*

• For the sales and purchase agreement executed from 1 January 2025
until 31 December 2027.

*Terms and conditions applied

2% Dividend Tax on Individual Shareholders

• Annual dividends income exceeding RM100,000 will subject to a 2%

dividend tax.
• Starting from year of assessment 2025.

Domestic Food Waste Composting Machine Relief

• Tax relief up to RM2,500 for electric vehicle (EV) charging facility will
be expanded to include purchase of food waste composting
machines for household use from year of assessment 2025 until 2027.

Foreign Sources Income by Individuals

• Exemption on foreign source income (FSI) received by individuals in
Malaysia will be extended until 31 December 2036.
02 Individual Tax
02 INDIVIDUAL TAX

Medical Expenses Relief

• Tax relief for medical treatment for taxpayer, spouse and child will
be expanded to cover expenses for purchase of self-testing medical
devices and fees for disease detection examination conducted at
clinic or hospital limited to RM1,000 from year of assessment 2025.
• Tax relief for assessment and diagnosis, early intervention programme
and continuous rehabilitation treatment for children aged below 18 will
be increased to RM6,000 from year of assessment 2025.
• Tax relief for medical expenses of up to RM10,000 will be expanded to
include portion of medical payments made by taxpayers under
medical and health insurance and takaful products with co-payment
features.

Sport Activities, Health and Elderly Care Relief

Individual Income Tax Relief
• Sports equipment & activities limited to RM1,000 will be expanded to
include parents.
• Full medical check-up expenses for parents, limited to RM1,000 will
be expanded to include vaccination.
• Medical treatment, special needs and parental care expenses will
be expanded to include grandparents.*
Individual Income Tax Exemption
• Income tax exemption of up to RM3,000 per year given on child care
allowance received by employees or paid directly by employers to
child care centres will be expanded to include elderly care
(parent/grandparents)
Starting from year of assessment 2025.
*Terms and conditions applied

Exemption on Sport Reward

• Tax exemption be given to on the reward of cash prize sports winnings
received by individual and team athlete winners through the Victory
Prize Scheme Sports provided by the Government through Majlis Sukan
Negara Malaysia (MSN).
03
BUSINESS
03 Business
02 INDIVIDUAL TAX

Tax Incentives for Implementation of E-Invoicing

Effective from YA 2024 to YA 2025, it is proposed that accelerated capital

allowance for the purchase of ICT equipment, software, and consulting
fees will be available, and businesses can claim these capital allowances
within two years.

Extensionofof
Extension TaxTax Deduction
Deduction for Sponsorship
for Sponsorship ofArtificial
of Smart Smart
Artificial Intelligence
Intelligence Driven
Driven Reverse Reverse
Vending Vending Machine
Machine
To further support plastic waste recycling practices and to increase the
collected-for-recycling rate, tax deductions for sponsorships of Smart AI-
Driven Reverse Vending Machines will be extended for 2 years with effect
from 1 January 2025 until 31 December 2026.

Tax Incentive for Employers Implementing Flexible Work

Arrangements (FWA)
For applications received by Talent Corporation Malaysia Berhad between
1 January 2025 and 31 December 2027, employers are entitled to a 50%
further deduction on expenses incurred for capacity building and software
acquisition related to the implementation of FWA. This deduction is
capped at RM500,000 and subject to a one-off claim limit.

Tax Incentive for Hiring Women returning to work

For applications received by Talent Corporation Malaysia Berhad between

1 January 2025 and 31 December 2027, employers are entitled to a 50%
further deduction on the employment expenses paid for a period of 12
months for hiring women returning to work.
03 Business
02 INDIVIDUAL TAX

Tax Incentive for Employers Providing Caregiving Leave Benefit

Employers offering additional paid leave of up to 12 months for employees

who are caregivers will receive a 50% further tax deduction. This
applications open from 1 January 2025 until 31 December 2027.

Tax Deduction on the Cost of Developing New Courses at Private

Higher Education Institutions (PHEIs)

Effective from YA 2025 to YA 2030, tax deduction is allowed on costs of

developing new courses by PHEIs in the same year of assessment. This
deduction is now extended to include the development of Technical and
Vocational Education and Training (TVET) courses by private skills training
institutions.

Benefits given to Technical and Vocational Education and

Training (TVET) sector
Effective from YA 2025 to YA 2027, tax deduction will be allowed for new
equipment and machinery donated to registered Public Skills Training
Institution (ILKA), polytechnics or vocational colleges.
03 Business
02 INDIVIDUAL TAX

Enhancement of TVET education and training opportunities by

Human Resource Development Corporation (HRD Corp)
through implementation of MADINI Training Program

Employers can use the HRDC levy to pay allowances up to RM1,000 per
year for graduates who participate in skills training program through
HRD Corp.

Accelerated Capital Allowance (ACA) and Income Tax

Exemption on Qualifying Capital Expenditure on Automation
Equipment
Manufacturing, service, agriculture and commodity sectors are given
Accelerated Capital Allowance (ACA) of 100% on qualifying capital
expenditure on automation equipment, as well as income tax exemption is
given on the same qualifying capital expenditure. Through this tax
incentive, companies can adopt more advanced technologies such as
drones and AI in farming operations, thereby reducing dependence on
foreign workers.
03 Business
02 INDIVIDUAL TAX

Improvement of educational access for students from

underprivileged family

Payments made to educators by institutions or organizations with an

educational objective, approved under subsection 44(6) of the Income
Tax Act, are allowed as welfare expenditure.

Expansion of Child Care Allowance to Include Elderly Care

Effective from YA 2025, further tax deduction on child care allowance paid
by the employers to employee will be extended to include elderly care
(parents/grandparents).

Double Deduction for Structured Training Programs (MySIP)

Double deduction on expenses incurred by companies implementing the

Structured Training Program (MySIP) under Talent Corp to be extended to
students undertaking structured training by industry regulatory body and
extended until YA 2030.

Tax Incentive for Hiring Disabled Person (OKU) and Ex-Convicts

Employers who hire disabled person (OKU) and ex-convicts will be given
an incentive of RM600 per month for a total of three months which
managed by SOCSO.
04
TAX
INCENTIVES
04 Tax Incentive
02 INDIVIDUAL TAX

Review of Tax Incentive for Smart Logistics Complex (“SLC”)

• To further enhance supply chain efficiency through advanced

technologies adaptation in logistics, including the use of IR4.0
elements such as AI, IoT and blockchain, it is proposed an income tax
exemption in the form of investment tax allowance (ITA) of 60% on
qualifying capital expenditure incurred for 5 years to be provided to
SLCs.
Eligible SLC
SLC Investor SLC Operator
companies
Invest in construction of smart warehouses
Leases smart warehouse
- under a long-term lease
of at least 10 years
Undertake eligible logistics services:
Incentive
i. Regional distribution centres;
conditions
ii. Integrated logistics services;
iii. Storage of hazardous goods; or
iv. Cold chain logistics
Warehouse with a minimum build-up area of 30,000 sqm
Adaptation of at least 3 IR4.0 elements

• For applications received by Malaysian Investment Development

Authority (MIDA) from 1 January 2025 to 31 December 2027.

Review of Tax Incentive for Increased Exports

• In line with the New Industrial Master Plan 2030 to establish Malaysia as
a hub for Advanced Integrated Circuit (IC) Design Technology and
Solutions, it is proposed the increased export incentive for the selected
services sector be expanded to include IC Design Services.
• Effective from year of assessment 2025.
04 Tax Incentives
02 INDIVIDUAL TAX

Introduction of New Investment Incentive Framework

• To promote balanced economic growth across the country, it is

proposed to introduce an Investment Incentive Framework focused on
high-value activities, shifting away from the current incentives that are
based on specific products or activities, such as:
➢ Increased export incentive, which will be expanded to include
Integrated Circuit (IC) Design Services;
➢ Tax incentive package for local suppliers involved in the Supply
Chain Resilience Initiative;
➢ Economic clusters by state, specialising in renewable energy in Perlis
and Sabah, and specialty chemicals in Pahang and Terengganu;
➢ Special income tax rates provided to investments across 21
economic sectors in states such as Perlis, Kedah, Kelantan,
Terengganu, Sabah, and Sarawak; and
➢ Tax incentives in the form of investment tax allowance or income tax
exemption for Carbon Capture, Utilization, and Storage (CCUS)
activities, which will be expanded to include downstream products.

• The Investment Incentive Framework is expected to be executed in the

third quarter of 2025.

Introduction of Tax Incentive Packages in relation to the Johor-

Singapore Special Economic Zone (“JSSEZ”)

• To promote the growth of JSSEZ as a sustainable special economic zone,

it is proposed to introduce tax incentive packages for the Forest City
Special Financial Zone. These incentives are aimed at boosting the
financial services activities, including global financial business services
and financial technology.

• This special tax incentive packages will be announced toward the end of
year 2024.
05
INDIRECT
TAX
05 Indirect Tax
02 INDIVIDUAL TAX

Sales Tax Exemption on Mastectomy Bra for Breast Cancer

Patients

• It is proposed sales tax exemption be given for mastectomy bras

(prevailing: sales tax rate of 10%)
• Effective Date : For applications received by the Ministry of Finance from
1 November 2024 until 31 December 207

Review of the Rates of Sales Tax and The Expansion of Service

Tax Scope

• It is proposed sales tax exemption be maintained on basic food

consumed by the Rakyat;
• Sales tax to be increased on non-essential items such as imported
premium goods (i.e. Salmon fish and Avocados);
• Expansion on the service tax scope by including new services (i.e.
commercial service transactions between businesses (B2B);
• Industry consultation will be undertake by the Government to provide
balancing measures as well as finalising the scope and applicable tax
rates
• Effective Date : 1 May 2025 onwards

Introduction of Carbon Tax

• The Government will introduce a Carbon Tax on the iron and steel
industry and energy industry in Malaysia by the year 2026

Review of Excise Duty Rate on Sugar-Sweetened Beverages

• Proposed the excise duty on sugar sweetened beverages be increased

in phases.

• Effective Date: 1 January 2025

05 Indirect Tax
02 INDIVIDUAL TAX

Review Of Export Duty Exemption on Crude Palm Oil (CPO)

• Proposed revision on export duty for CPO, taking into account the partial
exemption as outlined below:
Proposed
CPO Market Price Current Export
No. Export Duty
(RM/metric tonne) Duty Rate
Rate

1 < 2,250 NIL NIL

2 2,250 – 2,400 3.0% 3.0%

3 2,401 – 2,550 4.5% 4.5%

4 2,551 – 2,700 5.0% 5.0%

5 2,701 – 2,850 5.5% 5.5%

6 2,851 – 3,000 6.0% 6.0%

7 3,001 – 3,150 6.5% 6.5%

8 3,151 – 3,300 7.0% 7.0%

9 3,301 – 3,450 7.5% 7.5%

10 3,451 – 3,600 8.0%

11 3,601 – 3,750 8.5%

12 3,751 – 3,900 8.0% 9.0%

13 3,901 – 4,050 9.5%

14 > 4,050 10.0%

• Effective Date: 1 November 2024

05 Indirect Tax
02 INDIVIDUAL TAX

Review of Threshold Value for Windfall Profit Levy

• To continuously support the sustainability of the palm oil industry, it is

proposed the threshold of windfall profit levy for Peninsular Malaysia,
Sabah and Sarawak be revised as follows:
Threshold of CPO Prices
(RM/metric tonne)
No Location Rates of Levy
Proposed
Original
revision
Peninsular
1 3,000 3,150 3%
Malaysia
Sabah and
2 3,500 3,650 3%
Sarawak

• Effective Date: 1 January 2025

06
STAMP
DUTY
06 Stamp Duty
02 INDIVIDUAL TAX

Review of Stamp Duty On the Assignment of Life Insurance

Policy and Family Takaful Certificate
• It is proposed the deed of assignment for life insurance policy and
family takaful certificate given by way of love and affection or through
a trustee, be subject to stamp duty at a fixed rate as follows:
No. Ownership Transfer Value Stamp Duty

1. The first RM100,000 RM 10

2. Above the first RM100,000 to RM500,000 RM 100

3. Above RM500,000 to RM1,000,000 RM 500

4. More than RM1,000,000 RM 1,000

• Effective Date: Deed of assignments for life insurance policy and family
takaful certificate executed from 1 January 2025.

Review of Stamp Duty on Loan or Financing Agreements Based

on Shariah Principles
• It is proposed a fixed stamp duty of RM10 be imposed on loan or
financing agreement for the purchase of goods based on Shariah
principles, other than hire purchase.
• Effective Date: Loan or financing agreements based on Shariah
principles executed from 1 January 2025.

Exemption of Stamp Duty on Loan or Financing Agreements

Through The Initial Exchange Offering (IEO) Platform for Micro,
Small and Medium Enterprise (MSME)
• It is proposed a 100% stamp duty exemption be given on loan or
financing agreements executed by MSMEs and investors through the
IEO platforms registered with the Securities Commission Malaysia for 2
years.
• Effective Date: Loan or financing agreements executed from 1 January
2025 until 31 December 2026.
06 Stamp Duty
02 INDIVIDUAL TAX

Revision of Stamp Duty Exemption On Loan or Financing

Agreements for Skim Pembiayaan Mikro (SPM)

• It is proposed stamp duty exemption be given for SPM loan or

financing agreements, for amounts up to RM100,000.
• Effective Date : Loan or financing agreements under the SPM executed
from 1 January 2025.

Implementation of Self-Assessment System for Stamp Duty

• It is proposed self-assessment stamp duty system (STSDS) to be

implemented in phases based on the types of instruments or
agreement.
• STSDS requires duty payers or appointed agent to upload information
in STAMPS and undertake self-assessment of value of stamp duties for
instruments or agreements and make payment within specified
timeframe.
• Effective Date : As shown in table below

Phase Effective Date Types of instruments

Instruments/agreement related to
Phase 1 From 1 January 2026 rental/lease, general stamping and
securities
Instruments of transfer of property
Phase 2 From 1 January 2027
ownership
Instruments or agreements other
Phase 3 From 1 January 2028
than stated in Phase 1 and 2
07
LABUAN
07 Labuan
02 INDIVIDUAL TAX

Expansion of Income Tax Exemption for Islamic Financial

Activities Under Labuan International Business and Financial
Centre

• Proposed full income tax exemption be expanded to include qualifying

Labuan Takaful business activities and Labuan takaful related activities
(see Table below):

No Labuan Trading Entity Qualifying Activities

1 Labuan insurer; Labuan Takaful and re-takaful businesses
reinsurer; Labuan takaful that comply with Shariah principles:
operator; or Labuan i. Risk management; or
re-takaful operator. ii. Product development.
2 Labuan captive insurer; Takaful and re-takaful businesses
or Labuan captive that comply with Shariah principles
takaful. where takaful participants are
related companies or associated
companies or as approved by the
Labuan Financial Services Authority:
i. Risk management; or
ii. Product development
3 Labuan underwriting Provides underwriting services
manager; or Labuan including administration related to
underwriting takaful Labuan takaful business.
manager.
4 Labuan insurance Provides management or
manager; or Labuan administrative services related to
takaful manager. Labuan takaful business.
5 Labuan insurance Provides services such as:
broker; or Labuan takaful i. Arrange Labuan takaful and
broker. re-takaful business; or
ii. Financial analysis.

• Full income tax exemption for 4 years (Year of assessment 2025 to Year
of assessment 2028).
08
GRANTS
08 Grants
02 INDIVIDUAL TAX

Sports Program Matching Grant Fund

• RM 230 million
• Purpose:
To strengthen national sports development, including:
• Podium programs, athlete training, and the Road to Gold
initiative;
• Preparation of para-athletes ahead of the World Para Games,
including the Deaflympics Tokyo 2025;
• Maintenance and repair of youth and sports facilities nationwide;
and
• Sports matching grants to encourage the organization of sports
competitions by associations and NGOs.

Industry Training Program for Small and Medium Enterprises

(LiKES)

• RM 10 million
• Purpose:
To allow companies to train students in STEM fields through industrial
training, provided as a matching grant through TalentCorp.

Tunas Usahawan Belia Bumiputera (TUBE) Program

• RM 20 million
• Purpose:
To encourage the youth generation to venture into business, with
RM20 million allocated to the Tunas Usahawan Belia Bumiputera
(TUBE) Program.
08 Grants
02 INDIVIDUAL TAX

Malaysia Science Endowment (MSE) Trust Fund

• RM 170 million
• Purpose:
To support R&D programs, funds are allocated to the Malaysia
Science Endowment (MSE) Trust Fund, providing matching grants to
private entities and industries.

i-TEKAD Matching Grant Fund

• RM 20 million (including RM5 million for insurance or takaful premium)

• Purpose:
To support low-income micro-entrepreneurs by providing a
matching grant for insurance or takaful premiums. This initiative
benefits small traders, delivery riders and participants of the People’s
Income Initiative (IPR) whose crops were damaged by disasters.

Malaysia Co-Investment Fund (MyCIF) Matching Grant

• RM 40 million
• Purpose:
To support social impact investments, including Shariah-compliant
P2P financing and equity crowdfunding, under the MyCIF program.

Rubber Industry Smallholders Development Authority (RISDA)

• RM 60 million
• Purpose:
To encourage smallholders to produce latex for industrial demand,
the grant is provided as a matching grant under the Latex Production
Incentive Program.
08 Grants
02 INDIVIDUAL TAX

Export Sustainability Incentive Scheme by EXIM Bank

• RM 750 million
• Purpose:
To encourage local exporters to expand their operations into
international markets.

MATRADE Reimbursement Grant

• RM 40 million
• Purpose:
To help Malaysian exporters promote locally made products and
services on the international stage, particularly in exploring new
markets in Africa, Latin America, and the Middle East.

SME & Hawker Digitalisation Grant

• RM 50 million
• Purpose:
To help local entrepreneurs stay competitive in the market, the grant
is allocated as the MSME Digital Matching Grant and the Digital Grant
for Hawkers under BSN.

Cradle Fund

• RM 15 million (Matching Grant)

• Purpose:
To encourage GLCs to collaborate with startups through corporate
venture capital initiatives.
08 Grants
02 INDIVIDUAL TAX

Incentives for Farmers and Livestock Breeders

• RM 27 million
• Purpose:
To provide incentives to farmers and livestock breeders for increasing
the production of beef cattle, small ruminants (meat goats, dairy
goats, and sheep), as well as boosting the production of local onions.

Subsidies, Assistance and Incentives for Paddy Farmers and

Fishermen

• RM 2.78 billion
• Purpose:
To continue safeguarding the well-being of paddy farmers and
fishermen through the provision of subsidies, assistance, and
incentives.

Replanting Incentive for Smallholder Palm Oil Farmers

• RM 100 million
• Purpose:
To provide incentives to smallholder palm oil farmers for replanting
old, non-productive trees, this initiative aims to boost productivity
by replanting higher-yielding palm oil varieties.
08 Grants
02 INDIVIDUAL TAX

National Disaster Management and Flood Mitigation

• RM 20 million
• Purpose:
To enhance response efforts and deliver aid to flood-affected
victims in impacted areas, provided as a matching grant for GLIC
and GLC Foundations.

Film Incentive in Malaysia (FIMI)

• RM 40 million
• Purpose:
To support the production of international films in Malaysia.
09
FINANCING
PACKAGE
09 Financing Package
02 INDIVIDUAL TAX

Dana Pelaburan Bersama Strategik (CoSIF) & Dana

Pembangunan Industri NIMP (NIDF)
A total of RM 200 million has been allocated to support the growth of SMEs
and mid-sized companies, and promote creations.

GEAR-uP initiative

Government-Linked Investment Company (GLIC) plans to invest RM 120

billion in direct investments through the initiative over the next 5 years,
starting with RM 25 billion next year.

For example,

• KWAP: Allocating RM 6 billion through the Dana Pemacu to enhance

the local private market, focusing on private equity, infrastructure, and
real estate. This includes a co-GP partnership model with an initial
investment of RM 500 million next year in sectors like data centers,
energy transition, and advanced manufacturing.

• Khazanah: Committing RM 1 billion to support investments in the local

semiconductor industry.
09 Financing Package
02 INDIVIDUAL TAX

National Fund-of-Funds (NFOF)

The NFOF will be launched under Khazanah next month with a capital of RM
1 billion to support venture capital fund managers investing in startups,
including RM 300 million is allocated for 2025.

Dana Perintis
• KWAP, under the Dana Perintis will provide RM 1 billion to support local
startup activities, with RM 200 million specifically allocated for 2025.

Cradle Fund
• Cradle Fund will receive RM 65 million to help promising startups
expand regionally and globally. This includes RM 15 million in matching
grants as an incentive for GLCs to collaborate with startups through
corporate venture capital initiatives.

Empowerment and Support for Local Entrepreneurs and

Exporters

Empowering micro, small, and medium enterprises (MSMEs) will continue

to be intensified to support local entrepreneurs enter export markets.

Program Syarikat Mid-Tier by Khazanah

• Khazanah will launch the Program Syarikat Mid-Tier with a fund of RM 1
billion aimed at providing financing to support the capacity building of
local companies.

Skim Insentif Pemampanan Pengeksport by EXIM Bank

• To encourage local exporters to expand their operations into foreign
markets, RM 750 million is provided under the Skim Insentif
Pemampanan Pengeksport by EXIM Bank.

Financial assistance by MATRADE

• RM 40 million is also provided under MATRADE as a reimbursement
grant to help Malaysian exporters promote Malaysian-made products
and services on the international stage, particularly exploring new
markets in Africa, Latin America, and the Middle East.
09 Financing Package
02 INDIVIDUAL TAX

Skim Pembiayaan Teknologi Hijau (GTFS)

• The implementation of GTFS will continue with total financing of RM 1

billion until 2026.

Food Security by Agrobank

• Agrobank provides a loan facility of RM 200 million to agri-food

entrepreneurs supporting food security and sustainable agriculture.

Development of the HALAL Industry

• Bank Pembangunan Malaysia Berhad (BPMB) dan SME Bank offer

specific financing for halal SMEs with available funds of nearly RM 600
million.

• Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) is also ready

to guarantee up to 80 percent of financing for halal SMEs, with a
guarantee value of up to RM 1 billion.

• MATRADE is tasked with driving the development of more halal

enterprises to enhance competitiveness with an allocation of RM 20
million.

Wakaf MADANI

• Syarikat Jaminan Kredit Perumahan Berhad (SJKP) will guarantee first

homebuyer loans of up to RM 500 thousand for properties developed
on waqf land.
09 Financing Package
02 INDIVIDUAL TAX

Business Loan Facilities and Financing Guarantees

The Malaysian government is allocating a total of RM40 billion for loan
facilities and business financing guarantees through various agencies.
This includes:

Micro-sized Loans for Small Traders

• RM3.2 billion in micro-sized loans from Tabung Ekonomi Kumpulan
Usaha Niaga (TEKUN) and Bank Simpanan National (BSN) to support
small traders, including the Persons with Disabilities (PwD) community,
Chinese, and Bumiputera.

Infrastructure and Sectoral Financing

• RM6.4 billion from Bank Pembangunan Malaysia Berhad for
infrastructure, digitalisation, tourism, logistics, transportation,
renewable energy, and transition sectors.

Small and medium-sized enterprises (SMEs) Financing Guarantees

• RM20 billion in SMEs financing guarantees through SJPP, with RM5 billion
specifically for Bumiputera SMEs.

SMEs Loan Funds for Digital and Sustainable Practices

• RM3.8 billion in SMEs loan funds from BNM to support digital and
automation transitions, agri-food sector, and sustainable practices.

Support for Women and Youth Entrepreneurship

• RM650 million to support women and youth entrepreneurship.

Programs for the Indian Community

• RM130 million for programs to support the Indian community’s human
capital, social, and welfare, including business financing.

Government Support for Cooperative Business Activities

The government continues to support the business activities of
cooperatives, including providing working capital. Financing of up to RM
100 million is allocated under the Suruhanjaya Koperasi Malaysia.
09 Financing Package
02 INDIVIDUAL TAX

Financing under Majlis Amanah Rakyat (MARA) and

Perbadanan Usahawan Nasional Berhad (PUNB)
RM 800 million in financing under MARA and PUNB will be available to
support more Bumiputera entrepreneurs, including initiatives for local
artisan.

Support for Higher Education Access for Students

A total allocation of RM 4 billion is provided in the form of scholarhships,
loans and education allowances to facilitate students' pursuit of higher
education.

To produce graduates with high employability that meets industry

demands, Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) offers
education financing of RM 500 million specifically to prioritize students
pursuing studies in STEM fields at public universities (IPTA).

Financing for Industrial Trainees

Perbadanan Tabung Pembangunan Kemahiran (PTPK) is providing
financing of up to RM 500 million to benefit more than 20,000 trainees,
including RM 100 million specifically allocated for New Industrial Master
Plan (NIMP) priority sectors such as Maintenance, Repairs and Operations
(MRO), Electric Vehicle (EV), aerospace, and Artificial Intelligence (AI).

Government Guarantees for First-Time Homebuyers through

Skim Jaminan Kredit Perumahan (SJKP)
SJKP has approved RM 12.8 billion in government guarantees for over
57,000 first-time homebuyers. The government will continue to guarantee
housing loans up to RM 10 billion, benefiting an additional 20,000
homebuyers.
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02 INDIVIDUAL TAX

Financing for Women-Led micro, small, and medium enterprises

(MSMEs)
A total of RM 470 million in financing is provided by SME Bank, BSN, Bank
Rakyat and MARA to support MSMEs in securing working capital,
purchasing assets, and scaling their businesses to higher levels.

Skim Step Up Financing

The Skim Step Up Financing is introduced under the Syarikat Jaminan
Kredit Perumahan Berhad (SJKP) as a government guarantee of up to RM
5 billion specifically for young people who want to own their first home.
This scheme offers lower loan repayment facilities for the first 5 years.

Skim Sinar BSN for Persons with Disabilities

Financing facilities through the Skim Sinar BSN are provided with a fund of
RM 50 million to support persons with disabilities (OKU) in pursuing
business ventures.

MyCreative Ventures’ Financing for Creative Arts Industry

MyCreative Ventures has been allocated RM25 million to support the

creative industry through equity injections for high-potential companies
and provide financing for creative social entrepreneurs.

Skim Pembiayaan Perumahan Muda for Young Public Servants

Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA) will introduce the

Skim Pembiayaan Perumahan Muda for young public servants to apply for
housing financing of up to 40 years.
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OTHERS
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02 INDIVIDUAL TAX

Established A Rare Disease Fund

The allocation for covering the medical costs of rare diseases

has been increased to RM25 million.

The mySalam scheme was also expanded to include rare

diseases and Rheumatoid Arthritis.

Donations to the Fund will qualify for a tax deduction equal to

the contribution amount.

Subsidy for RON95

• Government plans to implement targeted subsidies for RON95 petrol in

mid of 2025.

Multi-tier Levy Mechanism

• Government plans to implement a multi-tier levy mechanism early

next year to reduce dependence on foreign workers.
• Revenue from the levy collection would be channeled back to industry
players to drive their business processes towards automation and
mechanisation.

Minimum wage
• Increase from RM 1,500 to RM 1,700 effective from 1 February 2025.
• Employer with less than 5 workers, will be given 6 months deferment
until 1st August 2025.
YYC’S 2025
BUDGET WEBINAR

REGISTER NOW
ENGLISH REGISTER NOW
Date: 29 October 2024 Speaker: Zen Chow
Time: 10:30 a.m. to 12:00 p.m. Platform: Zoom

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Date: 29 October 2024 Speaker: Zen Chow & Datin Shin
Time: 2:30 p.m. to 4:30 p.m. Platform: Zoom