Categories: Media ReleasePublished On: 10/10/2025

FOR IMMEDIATE RELEASE

10 OCTOBER 2025

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MIA WELCOMES BUDGET 2026 FOCUS ON RESILIENCE AND FUTURE-READINESS

As the regulator and developer of the accountancy profession, the Malaysian Institute of Accountants (MIA) welcomes the key Budget 2026 measures, which are strongly aligned with its current advocacy priorities, reaffirming its influence and relevance as the voice of the profession.

“By championing sustainability, digital transformation, capacity building, business resilience and good governance — underpinned by a strong code of ethics — MIA aims to enable a future-ready profession that is instrumental in driving national progress,” said MIA President Dato’ Seri Dr. Mohamad Zabidi Ahmad.

Driving Sustainability

“The MIA Sustainability Agenda adopts a two-pronged approach that champions sustainability for both the accountancy profession and the Institute. This ensures the profession’s continued relevancy by strengthening members competencies, upholding public interest, and supporting sustainable nation building,” said the MIA President. “The Government’s sustainability focused Budget 2026 aligns well with MIA’s advocacy to embed sustainability into the accountancy profession and strengthening the Institute’s governance, as outlined in our MIA Sustainability Blueprint for the Accountancy Profession and the MIA Framework and Strategy Plan for the Institute respectively.”

Budget 2026 advances Malaysia’s sustainability transition through targeted investments in capacity building, green financing, infrastructure resilience, and industry transformation, all of which encompassing MIA’s Sustainability Agenda.

These include:

  • RM3 billion for HRD Corp to deliver 3 million training opportunities, particularly in high-technology, digital, and energy transition sectors, to build ESG competencies.
  • RM3 billion under the Green Technology Financing Scheme (GTFS) to spur private investment in renewable energy, hydrogen, and bioenergy in line with the National Energy Transition Roadmap (NETR) and Energy Efficiency Act.
  • RM500 million for climate-resilient infrastructure funding to protect coastal areas, flood basins, and agricultural zones.
  • RM180 million under the NIMP Industrial Development Fund to finance industry development in high-impact sectors such as pharmaceuticals, semiconductors, AI, digital, and sustainability.

Strengthening Capacity Building and Education

“Budget 2026 strengthens Malaysia’s talent pipeline by expanding access to accounting education, while creating more opportunities for deserving and needy students to pursue the profession,” said the MIA President.

Notably, the allocation of RM1.3 billion to educate 79,000 TVET students under the TVET Madani programme — which includes accounting courses — will equip learners with practical and foundational skills for future careers.

The RM6 billion allocation to MARA, Yayasan Peneraju, and UiTM will enable more Bumiputera talents to pursue professional accounting qualifications and increase the number of Chartered Accountants [C.A.(M)] in Malaysia. “This is key to building the talent pipeline for accountancy professionals and aligns with MIA’s mandate to develop the profession in support of economic growth and nation building. These measures also underscore the Government’s commitment to equal opportunity and inclusive talent development,” said the President.

Complementing these measures are:

  • RM4.4 billion in scholarships, loans, and education allowances
  • Double tax deductions for private sector scholarships, which will encourage greater investment in education, including accountancy education.
  • RM120 million annual provision of free education via PTPTN for 5,800 needy student

Quality research is imperative for capacity building and thought leadership. The Institute welcomes the move to achieve AI Nation status by 2030, which requires strengthening Malaysia’s leadership in Artificial Intelligence (AI) through enhanced research, development, commercialisation and innovation (RDCI). Notably, the Government has allocated nearly RM5.9 billion for cross-ministerial RDCI activities.

“The Institute supports this forward-looking vision and emphasises the importance of AI-driven research in advancing the accountancy profession. Through its research arm, the Malaysian Accountancy Research and Education Foundation (MAREF), the Institute continues to foster applied research and collaboration between academia, industry, and policymakers to drive innovation and strengthen the development of the accountancy profession,” said the MIA President.

Digital Transformation

Budget 2026’s strong focus on digital transformation and AI is fully aligned with MIA’s advocacy to future-proof the accountancy profession—including diverse upskilling programmes and the establishment of the MIA AI Advisory Group in March 2025.

“AI is pivotal to the future relevance of the profession, which now stands at a very interesting tipping point. AI will not replace accountants — but accountants who use AI will replace those who don’t,” said MIA Chief Executive Officer G Shanmugam, highlighting AI as a key enabler of productivity and performance. “Professional judgment, accountability, and interpretation must still come from humans — that is where the true value of accountants lies,” he added.

In line with this future-ready stance, the Institute welcomes the Government’s continued focus on digital transformation under Budget 2026, which are aimed at building capacity and competency in the public and private sector (especially among under-resourced SMEs) while protecting Malaysia’s sovereignty in the digital space.

Recognising the need to build capacity among SMEs, which is aligned with MIA’s advocacy for business resilience, Budget 2026 allocates an additional 50% tax deduction for small and medium enterprises (SMEs) on expenses for certified training programmes related to AI and cybersecurity.

Other key Budget measures include:

  • Accelerating digitalisation across the public sector by leveraging AI, big data analytics, and automation.
  • Strengthening the National Artificial Intelligence Office (NAIO) and advancing AI education at local universities.
  • Allocation of RM20 million to the NAIO to develop skilled talent, strengthen digital infrastructure, and build an efficient AI ecosystem.
  • RM2 billion investment for a Sovereign AI Cloud by the Malaysian Communications and Multimedia Commission (MCMC), alongside the establishment of an AI Transformation Centre in cooperation with the Multimedia University and a Centre of Excellence in Ethics for Emerging Technologies as a research and development centre.

Strengthening Regulation

Budget 2026 also puts forward tax governance measures aimed at strengthening compliance, enforcement and fiscal revenue collection while plugging tax leakages. These include:

  • Rolling out of digital tax stamps featuring advanced security features to curb counterfeiting and improve revenue collection by the Royal Malaysian Customs Department (RMCD).
  • The introduction of a self-assessment system for stamp duty.
  • Tightening of vehicle tax exemptions in Langkawi and Labuan by limiting eligibility to vehicles valued at RM300,000 and below starting 1 January 2026.

“MIA lauds these measures which complement our advocacy for greater transparency and accountability through digitalisation, and reflects Malaysia’s commitment to a more efficient, technology-driven tax administration, good governance and equitable tax practices,” said MIA CEO G Shanmugam.

He also highlighted measures that “resonate strongly with MIA’s advocacy on sustainability—to strengthen environmental accountability and green finance readiness among accountants and businesses.” These include:

  • 100% Green Asset Investment Tax Allowance for companies adopting green technologies certified under MyHIJAU Mark
  • The introduction of a Carbon Tax beginning with the iron, steel, and energy sectors which further reinforces Malaysia’s transition towards a low-carbon economy.
  • A matching grant of RM5 million for revitalising the National Museum with tax-deductible donations, which encourages corporate social responsibility and private sector participation in preserving Malaysia’s heritage.

Equally important is the Budget’s strong emphasis on good governance and anti-corruption enforcement, driven by strategic collaboration between enforcement agencies which saw the recovery of RM15.5 billion in misappropriated funds within two years. MIA lauds the Budget’s measures to enhance enforcement capacity, with over RM700 million allocated for training, technology, and asset acquisition to support enforcement agencies including SPRM, as well as the introduction of tax incentives for anti-corruption programmes organised by civil society groups recognised by the SPRM.

Business Resilience

The 2026 Budget continues to address the two most critical challenges for SMEs: access to capital and market expansion. “MIA advocates strongly for business continuity and resilience among SMEs which are an important economic engine. Budget 2026 leverages strategically on credit instruments as well as equity investments and co-financing to help SMEs scale,” said MIA CEO G Shanmugam.

Some of these measures include:

Direct Loans & Micro-Credit include schemes for Micro-Entrepreneurs & Startups and Growth-Stage SMEs:

  • BSN & TEKUN: Over RM2.5 billion in micro-loans.
  • Amanah Ikhtiar Malaysia (AIM): RM230 million, with a total available fund of RM2.9 billion for over 300,000 entrepreneurs.
  • BSN Geran Perniagaan: Grants of up to RM10,000 for 1,000 micro-entrepreneurs to purchase business equipment.
  • Agrobank: RM1.1 billion for agri-entrepreneurs to expand and automate.
  • SME Bank: Specialized programs like “Jaguh Serantau” with RM200 million in loans for Bumiputera SMEs to penetrate export markets.

Enhanced Government Guarantees

  • Increased Capacity: The total guarantee limit under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) is raised to RM30 billion (from RM20 billion).
  • Broader Scope: Explicitly expanded to include micro-entrepreneurs.
  • Sector & Demographic Focus:
    • RM10 billion is earmarked specifically for Bumiputera entrepreneurs.
    • Increased guarantees for Halal PKS to RM2 billion.

Strategic Co-Investment & Equity Financing

  • Strategic Co-Investment Fund: RM200 million to provide matched funding for SMEs and mid-tier companies strengthening key supply chains, accessible through Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) platforms.
  • Venture Capital: Investment in KWAP and Khazanah’s venture capital arms increased to RM750 million to fuel high-growth startups.
  • MyCIF Expansion: RM30 million to expand the Malaysian Co-Investment Fund (MyCIF) to the ASEAN level and into high-impact sectors like food and agritech.

Grants for Market Entry & Development and Export-Focused Financing

  • MATRADE Market Development Grant (MDG): RM60 million is allocated to help SMEs with the upfront costs of exporting.
  • SJPP Backing: A 70% guarantee on loans specifically for companies focusing on exports.
  • EXIM Bank Loans: RM500 million financing for SMEs navigating global trade disputes.
  • Enhanced Strategic Connections: Following the rationalization of Government offices abroad, the Economic, Trade and Investment Strategic Network Program is being mobilized with an allocation of 10 million ringgit, particularly in new, high-potential markets.

Islamic Finance

The MIA lauds the government’s announcement to add 1,500 student places in key fields, including accounting and Islamic finance, at the nation’s premier research universities. “This initiative, which aims to provide more opportunities for high-achieving youth, is a critical investment in Malaysia’s future as one of the main global centres for Islamic finance and thought leadership,” said Dato’ Seri Dr. Mohamad Zabidi.

Directly supporting this initiative to cultivate top-tier talent, the MIA is pleased to announce the ongoing revision of its “Accounting for Islamic Finance” textbook, an essential guide for students in Islamic finance and accounting. By providing our revised textbook on a complimentary basis, we are investing directly in their success and, by extension, in the future leadership and resilience of Malaysia’s accountancy and Islamic finance sectors,” he added.

Additionally, MIA is partnering with the World Bank to publish an Industry Guide on Impact Monitoring and Reporting, “which is designed to build the necessary ecosystem enablers that will facilitate and scale Islamic social finance in Malaysia,” he said.

Public Sector Governance

The Institute commends the Government’s continued commitment to strengthen governance and transparency through the Public Finance and Fiscal Responsibility Act (FRA) and the amendment to the Audit Act 1957. “These landmark measures reflect Government’s determination to improve accountability and enhance confidence in public sector financial management. The Institute supports these reforms and remains committed to advancing sound public financial management and ethical governance,” concluded Dato’ Seri Dr. Mohamad Zabidi.

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NOTE TO EDITOR:

About the Malaysian Institute of Accountants (MIA)

Established under the Accountants Act 1967, MIA is the national accountancy body that regulate, develops, supports and enhances the integrity, status and interests of the profession in Malaysia. MIA accords the Chartered Accountant Malaysia or “C.A. (M)” designation. Working closely alongside businesses, MIA connects its membership to a wide range of information resources, events, professional development and networking opportunities. Presently, there are more than 40,000 members making their strides in businesses across all industries in Malaysia and around the world.

MIA’s international outlook and connections are reflected in its membership of regional and international professional organisations such as the International Federation of Accountants (IFAC) and the ASEAN Federation of Accountants (AFA). For more information on MIA, visit www.mia.org.my

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