We unpack Malaysia’s 2026 National Budget and its implications for the business community with Farah Rosley, Malaysia Tax Managing Partner at Ernst & Young Tax Consultants.



The continuity in the Budget 2026 reinforces fiscal consolidation and economic resilience, with a strong focus on strengthening existing tax frameworks, targeted incentives, and continued subsidy rationalisation. Key highlights include:


A reduced fiscal deficit target of 3.5% of GDP, signaling continued fiscal discipline.


Subsidy rationalisation measures, including the capping of RON95 petrol, contributing to a total expected savings of RM15.5 billion.


Strengthened tax collection through the nationwide rollout of e-invoicing by mid-2026 and a new stamp duty self-assessment system.


A new outcome-based incentive framework for corporate tax, linking financial support to measurable outcomes like employment and technology transfer.



Key targeted incentives for businesses, including:


An expanded RM1.5 million tax deduction on listing expenses for the energy, utility, and technology sectors.


An accelerated capital allowance to promote domestic direct investment and digital technology adoption.


A 10-year tax exemption for domestic sales from food security projects.




Support for regional integration through initiatives like the Johor-Singapore Special Economic Zone and the ASEAN Business Entity Framework.


A continued focus on sustainability, with enhanced green technology incentives and the impending introduction of a carbon tax.





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We unpack Malaysia’s 2026 National Budget and its implications for the business community with Farah Rosley, Malaysia Tax Managing Partner at Ernst &amp; Young Tax Consultants.The continuity in the Budget 2026 reinforces fiscal consolidation and economic resilience, with a strong focus on strengthening existing tax frameworks, targeted incentives, and continued subsidy rationalisation. Key highlights include:<ul><li>A reduced fiscal deficit target of 3.5% of GDP, signaling continued fiscal discipline.</li><li>Subsidy rationalisation measures, including the capping of RON95 petrol, contributing to a total expected savings of RM15.5 billion.</li><li>Strengthened tax collection through the nationwide rollout of e-invoicing by mid-2026 and a new stamp duty self-assessment system.</li><li>A new outcome-based incentive framework for corporate tax, linking financial support to measurable outcomes like employment and technology transfer.Key targeted incentives for businesses, including:<ul><li>An expanded RM1.5 million tax deduction on listing expenses for the energy, utility, and technology sectors.</li><li>An accelerated capital allowance to promote domestic direct investment and digital technology adoption.</li><li>A 10-year tax exemption for domestic sales from food security projects.</li></ul></li><li>Support for regional integration through initiatives like the Johor-Singapore Special Economic Zone and the ASEAN Business Entity Framework.</li><li>A continued focus on sustainability, with enhanced green technology incentives and the impending introduction of a carbon tax.</li></ul>Brought to you by Mah Sing. Reinvent Spaces. Enhance Life.

Helping you navigate the ever-changing universe of business, from headlines to the bottom line

Helping you navigate the ever-changing universe of business, from headlines to the bottom line