Malaysians welcome Budget 2026, but cost-of-living and transparency still weigh heavy

When Malaysia’s Budget 2026 was unveiled on 10 October, it sparked cautious optimism among Malaysians. Many appreciated its people-focused direction and focus on household support, yet concerns about cost of living, healthcare, and transparency continue to loom large.

A nationwide survey by Milieu Insight, conducted between 10 and 12 October 2025 among 1,000 Malaysians, found that 63% view Budget 2026 positively. While most respondents welcomed the government’s initiatives, many still feel that critical needs remain unaddressed. Inflation tops the list, with 44% identifying it as Malaysia’s biggest challenge.

Although Malaysians appreciate the budget’s people-centric direction, many also emphasised the need for greater transparency. Beyond optimism, Malaysians want visibility, with 38% expressing a desire for real-time spending dashboards to track how funds are used and the results achieved. 

Hopeful but hesitant

Budget 2026, tabled by Prime Minister and Minister of Finance YAB Dato’ Seri Anwar Ibrahim, marks the country’s fourth MADANI budget and the first under the 13th Malaysia Plan (13MP). With a total allocation of RM419.2 billion, it aims to strengthen social protection, accelerate reforms, and revitalise the economy.

The public sentiment, however, remains mixed. While Malaysians recognise the government’s people-first focus, many are cautious about how effectively these measures will be implemented. Nearly three in four respondents (73%) rated their understanding of the budget as “moderate” to “fairly well”, showing a decent level of awareness of its key reforms. Still, 13% admitted to having little understanding, suggesting that budget communication could be made more relatable and accessible.

When it comes to how people receive updates, social media remains the leading source (47%), particularly among younger Malaysians. Meanwhile, television and radio (27%) continue to play an important role for older audiences. These findings highlight the importance of using multiple communication channels to ensure that Malaysians of all ages understand how the budget affects them.

People-centric measures welcomed, but pain points persist

Budget 2026 introduced several household-focused measures, such as expanded childcare and medical tax reliefs, preventive healthcare incentives, and enhanced social protection for gig and informal workers through the i-Saraan Plus scheme. These efforts reflect the government’s ongoing commitment to inclusive development and social resilience.

However, Milieu’s findings show that Malaysians still want stronger emphasis on key priorities. Improving access to healthcare and reducing medical costs (35%), lowering prices of food and daily essentials (32%), and making housing more affordable (26%) emerged as the top concerns.

Healthcare affordability is a consistent issue across all age groups, showing that despite increased government allocations to public health, many still struggle with medical expenses.

Perception of Budget 2026’s impact: Positive or not?

When asked about the impact of Budget 2026, only 18% believe it will significantly ease the cost of living, while 51% think it will provide only slight relief. Middle-aged Malaysians expressed the highest level of frustration, while younger adults were more uncertain about its short-term impact.

On who benefits the most, a majority of respondents (57%) identified B40 households, reflecting recognition of the government’s progressive assistance. However, only 24% believe that the M40 group receives sufficient support, reinforcing the perception of a “squeezed middle.” Meanwhile, 27% believe that small and medium enterprises (SMEs) stand to benefit, acknowledging their importance to Malaysia’s economy and employment landscape.

Despite these mixed perceptions, 58% of Malaysians say they are ready to take advantage of new opportunities offered through grants, subsidies, or upskilling programmes. Optimism is strongest among youth aged 16 to 24 and older Malaysians aged 55 and above, showing that engagement depends on how clearly programmes are communicated and how easily accessible they are.

Challenges and expectations: Governance, inflation, and wages

When asked about Malaysia’s most pressing challenges, respondents identified rising cost of living and inflation (44%), poor governance (37%), and stagnant wages (30%) as the top three.

Concerns about governance point to a wider call for transparency and accountability. These findings echo results from the 2024 Corruption Perceptions Index, where Malaysia scored 50 out of 100 and ranked 57th out of 180 countries, maintaining the same position as 2023.

Malaysians are not only asking for more openness but also stronger enforcement. 38% want open data tracking of government spending, 37% call for regular public reporting on budget disbursements, and 30% want stricter penalties for misuse of funds. Together, these figures reflect growing public demand for transparency that leads to trust and tangible outcomes.

Looking ahead: Reform over relief

When asked what they want to see in future budgets, Malaysians prioritised reform over short-term relief. The top three priorities were anti-corruption efforts (33%), subsidy restructuring (30%), and job creation programmes (30%), especially among younger respondents who are focused on long-term economic opportunity.

Overall, Malaysians view Budget 2026 as a positive step toward people-centred growth, but many feel that confidence will depend on effective implementation, clear communication, and measurable results.

For now, Malaysians remain hopeful that the promises made in this budget will translate into meaningful, lasting change.