Budget Madani 2026 Highlights

Malaysia’s Budget 2026 marks a shift from economic recovery to transformation — with a strong focus on digitalisation, sustainability, and high-value investments.
Here are the key measures impacting businesses:

• Digitalisation & Compliance – Nationwide e-Invoicing rollout by mid-2026 and digital stamp duty to enhance tax transparency.

• Investment Incentives – Targeted support for high-value sectors including AI, semiconductors, green energy and digital economy, with accelerated capital allowances for ICT and machinery.

• Tax Updates –

• Extension of foreign-sourced income exemption to 2030

  • 2% tax on LLP profit distributions exceeding RM100,000

  • Higher stamp duty threshold for employment contracts

  • Introduction of a carbon tax for high-emission industries

• SME & Talent Support – RM50 billion in loan and guarantee facilities, plus additional tax deductions for AI and cybersecurity training.

• Sustainability Push – Expanded green investment tax incentives and ESG-linked measures.

📊 The Budget reinforces Malaysia’s direction towards a value-driven, innovation-led economy. Businesses that adapt early — through digital transformation, ESG readiness and investment in upskilling — will gain a competitive edge.

At Loi & Co PLT, we help businesses navigate new compliance requirements and maximise available tax incentives.

📞 Contact Us to discuss how Budget 2026 may affect your business.