Malaysia Oversight

Budget 2026: Youth age limit capped at 30; RM3,000 tax relief to cover childcare up to age 12

By MalayMail in October 10, 2025 – Reading time 2 minute
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KUALA LUMPUR, Oct 10 — Malaysians will only be considered as youths up to age 30 from next year onwards, Prime Minister Datuk Seri Ibrahim said today.

Currently, the age limit for youths in Malaysia is at 40 years old.

, who is also finance minister, listed these initiatives for women in his Budget 2026 speech today, including:

  • Proposed expansion of existing RM3,000 individual income tax relief on nursery fees for children up to age six, to be expanded to cover daily care centres or registered transit centres for children up to age 12. Tax relief expansion to start from 2026 tax assessment year.
  • To help 5,000 poor single mothers who need legal aid to resolve court cases such as divorces, child custody;
  • RM270 million funding by Bank Rakyat, BSN, MARA and SME Bank to support women entrepreneurs;

In his Budget 2026 speech, also listed these initiatives for youths:

  • RM250 million for National Service Training Programme, including to start at pilot stage at higher education level, before full implementation in 2027.
  • RM40 million for Rakan Muda, including for youths in rural areas who are marginalised in terms of education and jobs.
  • To improve graduates’ employability: RM200 million from Khazanah Nasional for KYouth programme to give on-the-job training to 11,000 youths without degrees in strategic sectors (semiconductors; machinery; Maintenance, Repair and Overhaul; digital and technology); and nearly RM30 million for MARA’s Industrial Boot Camp.

To encourage youths to be entrepreneurs, Anwar also announced:

  • RM150 million form BSN for youth entrepreneurs aged 30 and below;
  • RM12 million under SME Corp’s Tunas programme for Bumiputera youth entrepreneurs for training and business assistance;
  • Government to continue fund costs to obtain B2 class motorcycle licence to support less fortunate youths who provide delivery services.

In July, Youth and Sports Minister Hannah Yeoh said the federal government is firm in its decision to reduce the age ceiling for Malaysian youths to age 30 from January 1, 2026 onwards.

 



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