Budget 2026: Govt To Extend Childcare Tax Relief To Children Aged Up To 12

KUALA LUMPUR, Oct 10 (Bernama) -- The government plans to expand the individual income tax relief of RM3,000 for fees paid to registered childcare centres or transit centres to cover children up to 12 years old, effective from the 2026 assessment year.

Prime Minister Datuk Seri Anwar Ibrahim said the tax relief previously applied only to expenses for children aged up to six years at nurseries or kindergartens.

He also said women’s participation in corporate leadership continues to show encouraging progress, with 45 per cent of public-listed companies meeting the target of having at least 30 per cent women on their boards as of Oct 1.

“However, eight companies still have no female board members, and the Securities Commission will intensify efforts to promote women’s involvement in corporate management,” he said when tabling Budget 2026 in the Dewan Rakyat today. 

Anwar also announced that Amanah Ikhtiar Malaysia (AIM) will allocate RM230 million to continue offering financing, bringing AIM’s total available fund to RM2.9 billion, benefiting over 300,000 entrepreneurs.

AIM’s repayment performance has been excellent, especially among women, who recorded a repayment rate of 99.97 per cent — men, slightly less,” he said.

Meanwhile, Bank Rakyat, BSN, MARA and SME Bank will provide RM270 million in financing to support women entrepreneurs in the micro, small and medium enterprise (MSME) sector.

The government will also assist 5,000 underprivileged single mothers who require legal aid for court cases such as divorce and child custody.

From next year, the youth age limit will be set at 15 to 30 years to ensure their participation and contributions to national development are more focused and effective, Anwar said.

He said the National Service Training Programme (PLKN) 2026 will be implemented to instil discipline, patriotism and volunteerism among young people, with RM250 million allocated, including for a pilot phase at the higher education level before full implementation in 2027.

To enhance graduate employability, Anwar said Khazanah will allocate RM200 million for the K-Youth programme, which provides on-the-job training for 11,000 non-degree youths in strategic sectors such as semiconductors, machinery, maintenance, repair and operations (MRO), digital and technology.

“MARA’s Industrial Boot Camp (IBC) has successfully trained nearly 5,000 participants with guaranteed job placements. Nearly RM30 million is allocated to continue the IBC programme.

“An allocation of RM40 million is provided for Rakan Muda programmes, including outreach initiatives for rural youths who are left behind in education and employment,” he said.

To encourage youth entrepreneurship, BSN will provide RM150 million in financing for entrepreneurs aged 30 and below, while the Tunas Usahawan Belia Bumiputera (TUBE) programme under SME Corp will receive RM12 million for training and business support.

The government will also continue to cover the cost of B2 motorcycle licences to help low-income youths participate in delivery services.

-- BERNAMA