Budget 2025: What Parents Need to Know About Education and Childcare Benefits

In case you missed it, Prime Minister Anwar Ibrahim recently announced RM421 billion in allocations for Budget 2025 – the largest yet in the history of Malaysia. For families with school going children, several measures are included in the budget to help manage the costs of education and childcare.

Here’s a quick overview of how the new budget can benefit you: 

Education and health insurance for families

• The tax relief for education and medical insurance premiums has increased from RM3,000 to RM4,000. 

Nursery and kindergarten fees

• The RM3,000 tax relief for nursery and kindergarten fees is now extended until 2027. 

SSPN education savings 

• The SSPN-i scheme, a savings plan for children’s education by the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) now offers an extended RM8,000 tax relief until 2027, giving parents additional years to save and claim tax benefits. 

Support for parents with special needs children

• Tax relief for the diagnosis, early intervention, and rehabilitation of children with learning disabilities has increased from RM4,000 to RM6,000.
• Additionally, a RM15 million fund will be allocated for tuition fee assistance for 30,000 autistic children, while RM200 million has been set aside to provide a monthly allowance of RM150 to over 110,000 special needs students. 

Direct financial aid for students

• Under the Bantuan Awal Persekolahan (BAP) scheme, every student from Standard 1 to Form 5 will receive RM150 for school-related expenses, benefiting 5.2 million students in 2025.
• Lower-income families with three children will be eligible for more than RM13,000 in cash aid yearly, an increase from the current RM11,000, providing much-needed relief for underprivileged households.