Malaysia likely to offer more help to tackle living costs in 2026 budget

Anwar expected to announce more social aid when he unveils spending plan on Oct 10

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Malaysia will probably spend more on public subsidies and social assistance as part of its budget for 2026 amid rising living costs, economists said, even as the government seeks to boost its revenue and strengthen its fiscal position.

Prime Minister Anwar Ibrahim, who is also the finance minister, is set to announce the government's spending plan for 2026 in Parliament on Oct 10, aiming to fine-tune the policies of his last three budgets and align economic goals with a five-year plan announced in July.

While Datuk Seri Anwar is unlikely to introduce new broad-based taxes, he could raise excise duties on alcohol and tobacco, as well as provide details on implementing a proposed carbon tax, analysts and economists said.