Key Highlights of Malaysia's Budget 2025

As we move into 2025, businesses and individuals alike must ask themselves: How will the new Budget shape the way we manage resources, navigate financial responsibilities, and seize opportunities for growth?

On 18 October 2024, the government announced a record-breaking RM421 billion budget, with significant allocations towards narrowing the fiscal deficit, cutting subsidies and bolstering the economy’s competitiveness. The government is also looking into growing its revenue through a review of the sales and service tax which is set to  progressively expand from May 2025.

But more importantly, how will these policies impact you? Will your business adapt and thrive under these new conditions, and are you personally prepared for the financial shifts that will affect households across the country?

In this article, we break down the key highlights of the Budget, shedding light on how the proposed changes can influence your strategic decisions and everyday financial choices.

Ekonomi Madani: Negara Makmur, Rakyat Sejahtera

Snapshot of the latest Budget 2025 announcement:

2% dividend tax

31 December 2036

Extension of tax exemption on foreign sourced income for individuals.

Self assessment

Implementation of self-assessment system for stamp duty starting in phases from 1 January 2026.