Malaysia’s Budget 2025: What It Means for You and Me

Malaysia’s Budget 2025 is out, on October 18th 2024, and it’s packed with changes that will touch nearly every aspect of your lives and mine, from salaries to taxes, and even our environment. Let me break it down in a personal, bite-sized way so we can get a sense of what’s coming for the year ahead ya...

 

Boosting Wages (Finally!)

Good news for those of us hustling in the workforce – the minimum wage is getting a bump to RM1,700, up from RM1,500. Now, before you celebrate, this change kicks in February 2025, so we have to wait a bit.

And for smaller companies (those with fewer than five employees), they get until August 2025 to catch up. While it’s a step in the right direction, it’ll be interesting to see how this impacts living costs, especially in urban areas.

 

Tackling Taxes – What’s New?

On the tax front, there’s a new dividend tax coming our way. If you’re lucky enough to be pulling in over RM100,000 in dividends annually, expect a 2% tax starting in 2025. While this mainly affects high-net-worth individuals, it’s part of the government’s broader strategy to ensure that the wealthy contribute a bit more.

For the rest of us, the Sales and Service Tax (SST) is being expanded. From May 2025, certain services and non-essential foods (looking at you, avocado toast) will be taxed. Not a fan, but it’s aimed at boosting government revenues without taxing basic necessities.

 

What’s Up with Sustainability?

If you’re into green tech or just curious about climate action, the National Energy Transition Roadmap (NETR) is something to keep an eye on. An extra RM300 million will go towards projects like the Kenyir Hybrid Solar Farm, which sounds fancy but essentially means Malaysia is pushing for more renewable energy.

The government is also serious about the carbon tax, targeting energy-heavy industries like steel production. This won’t affect us directly just yet, but the aim is to make industries cleaner and greener – definitely something to applaud as we deal with climate change.

 

Supporting the Rakyat (You and Me!)

The Compassionate Assistance Program (STR) is growing too, with RM13 billion dedicated to helping those in need. That means 9 million Malaysians (or about 60% of the adult population) will benefit from this program. If you’re in the B40 group or know someone who is, there’s an increase in welfare aid for the elderly, which will now be RM600 a month.

And for families with kids, there’s even more support. The Child Assistance Rate will rise to RM250 for kids under six and RM200 for kids aged 7 to 18. For those of us with large families, the max per family is RM1,000.

Not bad ya...

 

Moving into the Future – Digitally

The budget is pushing for a more digital Malaysia. One of the cooler parts is the MyDigital ID – an app that will link various government services (think JPJ, LHDN) to your MyKad. This means you’ll soon be able to receive financial aid directly to your MyKad and use it for shopping at over 600 stores. Talk about going cashless ey...

Also, the government is getting serious about AI – with RM50 million going towards AI education at universities. Whether you’re tech-savvy or not, it’s clear that AI will be playing a bigger role in our lives soon, and the government is making sure we don’t get left behind.

Sidenote: Ethical Considerations When Using AI in Medical Sales

As AI becomes more integrated into the medical sales industry, it’s crucial to understand the ethical implications that come with it. This article explores how AI can enhance sales performance while highlighting the importance of balancing innovation with ethical practices, such as patient privacy, transparency, and the responsible use of data. A must-read for medical sales professionals looking to adopt AI responsibly. Read more here

 

How About Housing and Investments?

If you’re looking to buy your first home, the government’s Step Up Financing Scheme offers RM5 billion in support. That’s great news, especially for younger folks trying to get a foot on the property ladder.

And if you’re wondering where the big bucks are going, government-linked companies will be investing RM120 billion over the next five years, with RM25 billion planned for 2025 alone. This is all part of the bigger picture to boost domestic investments and create jobs – 900,000 to be exact by 2030.

 

And Our All Time Favorite: Healthcare & Pharmaceuticals

Let’s touch a bit on healthcare in the Budget 2025...

There’s a big focus on ensuring that we all have better access to quality healthcare, which is fantastic news. The government is pumping in RM45.3 billion to the Ministry of Health, so here’s what that means for us:

First, we’ll be seeing improvements in the overall healthcare infrastructure. RM1.35 billion is specifically set aside for maintaining and upgrading facilities – you know, fixing those outdated hospital restrooms and making sure we’re getting the care we deserve in a modern space.

If you’ve ever felt frustrated with your local clinic’s service, good news – RM300 million is being used to upgrade underperforming clinics. This means better service, faster check-ups, and more reliable facilities for everyone.

On top of that, there’s a bit of a tax relief bonus. The personal income tax deduction for medical insurance premiums has been bumped up to RM4,000, and you can now fully deduct medical examination fees, including vaccinations.

And get this...

Expenses for your parents’ and grandparents’ medical exams are deductible too! It’s a nice relief for those of us supporting the older generation.

As for the pharmaceutical angle, while it wasn’t highlighted specifically, the budget’s broader focus on improving healthcare access, infrastructure, and digital health projects definitely covers this area. With all the funds going toward clinics, hospitals, and healthcare tech, it’s safe to say that ensuring the supply of medications and streamlining healthcare processes is on the agenda too.

In short...

Budget 2025 looks like a step forward in healthcare, which makes me feel optimistic about what’s to come. What about you? Are you feeling the positive vibes from this boost in healthcare spending? Let’s hope we all start to see the benefits soon.

Final Thoughts

Budget 2025 is a mix of old and new – from wage hikes and welfare programs to carbon taxes and AI investments. There’s something in it for everyone, and while we might not feel all the changes right away, these initiatives are setting the stage for a more sustainable, digital, and hopefully prosperous future for Malaysia.

As always, let’s keep an eye on how these plans unfold and how they’ll affect us day to day. And if you’re looking to dive deeper into the details, I recommend checking out sources like PwC and EY for a more comprehensive breakdown.

Let me know your thoughts on Budget 2025.

Is there something you’re excited (or worried) about?

Useful reading:

1. Medical Sales Rep Guide: Malaysia Budget 2023  

This article offers valuable insights tailored for medical sales reps on how Malaysia’s Budget 2023 impacts the pharmaceutical industry. It breaks down the essential policies, allocations, and how these changes can affect daily operations in the medical sales field. A must-read for anyone in the industry navigating the budget's implications.

Read more here

 

2. Breaking Down Malaysia's Budget 2023

Curious about how Malaysia’s Budget 2023 will affect the healthcare sector? This article provides a clear and concise breakdown of the key budget highlights, focusing on healthcare, pharmaceutical, and medical sectors, and what it all means for professionals and businesses. 

Read the full breakdown here