Budget 2026 is a transformation budget that rewards those who invest, digitalise and grow responsibly. Malaysia is now shifting towards a new era of productivity and sustainability.

From tax reliefs for families and healthcare to AI training incentives and carbon tax preparation, this Budget sends a clear message that it is time to adapt.

If you are running a business, these are the key takeaways:

1. Foreign-sourced income exemption extended to 2030, giving more room for cross-border planning.
2. Accelerated Capital Allowance (ACA) with 20 percent initial allowance and 40 percent annual allowance for local machinery and ICT upgrades.
3. AI training deduction offering an additional 50 percent claim for MSMEs, available once every two years.
4. Stamp duty self-assessment starting 2026, bringing efficiency and digital compliance.
5. Carbon tax beginning with heavy industries, where early preparation will make the difference.

At KTP, we have summarised the full Budget 2026 highlights and what they mean for SMEs, individuals and investors.

English : https://lnkd.in/gruPzAqw
Chinese : https://lnkd.in/g8Re8w4g