The Malaysian International Chamber of Commerce and Industry (MICCI) welcomes the government’s forward-looking and people-centred approach in Budget 2026, which balances economic growth with the wellbeing of citizens. The Chamber views the Budget as a positive step towards building a more predictable, competitive, and sustainable business environment.
The Chamber commends the government for maintaining a steady course towards fiscal discipline and economic resilience, alongside targeted measures to ease cost pressures on businesses, promote innovation and sustain Malaysia’s position as a regional hub for trade and investment.
MICCI welcomes the government’s continued focus on strengthening tax administration and compliance through digitalisation. The full implementation of the e-Invoicing initiative starting in 2026, together with the introduction of a self-assessment system for stamp duty and faster processing of tax refunds, reflects a more transparent and business-friendly approach to taxation. We encourage the government to continue providing clear guidance and targeted incentives to support businesses, especially small and medium enterprises, in adopting e-Invoicing and transitioning smoothly to the new system.
MICCI notes with concern the government’s decision to raise excise duties on tobacco and alcohol starting Nov 1, 2025. While we recognise the fiscal considerations behind this move, the Chamber had hoped excise rates would remain unchanged, given existing pressures on legitimate industry players already contending with rising costs and a persistent illicit market. The government should prioritise addressing smuggling and tax leakages, which could recover billions in lost revenue each year while fostering a fair and sustainable environment for legitimate businesses.
We, therefore, urge the government to double down on enforcement, and hope that the provision of RM700 million for enforcement agencies, including the Royal Malaysian Customs Department and PDRM, to enhance training and asset procurement will help strengthen efforts against illicit trade. The rollout of digital tax stamps to curb forgery and leakages is also a timely step. Strong, coordinated enforcement remains the most effective way to protect legitimate businesses and consumers, safeguard jobs and government revenue.
Human capital development remains a central pillar of Malaysia’s long-term growth strategy. MICCI welcomes the government’s substantial allocations under Budget 2026 — including HRD Corp’s RM3 billion fund to provide three million training opportunities in high-value sectors, the RM7.9 billion allocation for TVET and the RM650 million dedicated to upskilling trainers in NIMP sectors. This will contribute significantly to Malaysia’s competitiveness in the high value sectors and evolving industrial landscape.
The Chamber also applauds the introduction of stronger protections and incentives for gig, e-hailing and p-hailing workers under the enhanced i-Saraan Plus scheme, which offers matching contribution incentives of up to RM600 a year, or RM6,000 for life. The government’s commitment to bear up to 70% of Perkeso contributions in the first year and 50% in the second year for gig workers in non-mandatory sectors is a progressive step towards social protection and financial inclusion.
As Malaysia continues to navigate global uncertainties, including shifting trade dynamics, climate transition pressures, and subsidy rationalisation, Belanjawan 2026 reaffirms the government’s commitment to inclusive and sustainable nation-building. The combination of targeted fiscal incentives, human capital development and provisions in enforcement lays the groundwork for long-term economic strength and stability.
MICCI stands ready to collaborate with the government and relevant ministries in translating these policy directions into effective, on-the-ground implementation through continuous dialogue and consultation with industry. With clarity, predictability and fairness guiding policy execution, Malaysia is well positioned to strengthen its role as a competitive and resilient player in the regional and global economy.
