Budget 2022: Where will most of the money go? | Malaysia



The 2022 budget saw a whopping RM 332.1 billion allocated for operational and development spending for the coming year, the highest in Malaysian history. – Photo by Shafwan Zaidon

KUALA LUMPUR, October 31 – Budget 2022 saw a gigantic RM332.1 billion allocated for operational and development spending for the coming year, the highest in Malaysian history.

It focuses on three main areas: economic recovery, building resilience and stimulating growth as Covid-19 moves from a pandemic to an endemic disease.

The following is an overview of the main areas that Budget 2022 will fund.


For 2022, the Ministry of Education will receive the lion’s share of Ringgit 52.6 billion, or 16% of the total federal budget.

Another 14.5 billion ringgit has also been allocated to the Ministry of Higher Education, making education the largest public expenditure for the coming year at 67.1 billion ringgit.

Under the aegis of the Ministry of Education, the government announced an increase in early education assistance of RM 150, up from RM 50 previously. He allocated 450 million RM to help some three million students.

The allocation will also include 1 billion ringgit for the maintenance of some 10,000 schools under government supervision. This includes some RM 140 million to the Department of Islamic Development Malaysia (Jakim) to maintain Tahfiz and religious schools, RM 40 million more than this year.

Some 746 million ringgit have also been allocated to repair dilapidated schools, mainly 112 in Sabah and 165 in Sarawak classified as such.

The government has also allocated 50 million ringgit for special education, especially to purchase teaching aids and modernize facilities.

Another 400 million ringgit has also been allocated to provide milk to schools daily.

The government has also introduced a grant of RM100 for every teacher to buy gadgets for online learning, which will benefit some 400,000 teachers nationwide.

For borrowers from the National Higher Education Fund Corporation (PTPTN), the government has offered discounts for full and partial settlements as well as scheduled repayments.


The ongoing pandemic meant it was no surprise that the Department of Health (MOH) received the second highest allocation of any department.

For 2022, the Ministry of Health will receive RM32.4 billion for operational and development costs, with another RM4 billion specifically to fight Covid-19.

Expenses related to Covid-19 will also include the purchase of booster vaccine doses, antiviral drugs and other medical supplies such as personal protective equipment.

The government has also agreed to allocate 100 million ringgit to sponsor medical specialist programs that will benefit some 3,000 contract doctors and dentists.

An additional 70 million ringgit is also allocated for mental health programs and advocacy.

Defense and security

To ensure public order and strong national defense, the Ministry of Interior and the Ministry of Defense will receive 17 billion and 16 billion ringgit respectively.

This includes 1.6 billion ringgit to modernize military assets, including 14 million ringgit for equipment such as parachutes, closed-circuit diving equipment and boats for the PASKAL of the Navy and the PASKAU special forces of the ‘Air Force.

Another 230 million RM has also been set aside for maintenance work on schools in army camps, military installations and houses of armed forces personnel. This endowment also includes the maintenance of the elevators of the police stations.

The government has also planned eight new General Operations Force facilities at Pagalungan, Sabah and Temong Mura in Sarawak to improve border control as well as four new immigration checkpoints in Telok Melano and Baleh, Sarawak to accommodate increased traffic to Kalimantan in Indonesia and the opening of the Telok Route Melano of the Pan Borneo highway

Some Ringgit 100 million has been allocated to the National Disaster Management Agency and an additional Ringgit 20 million is budgeted for the Registrar of Societies for Malaysia’s Community Empowerment Incentive Program.

Economic financing package

To accelerate and stimulate economic growth, the federal government has allocated 40 billion ringgit for various funding programs under the SemarakNiaga program for micro, small and medium enterprises (MSMEs) to start their business.

This includes Ringgit 14.1 billion made available to small and medium-sized enterprises, including Ringgit 2 billion under Bank Negara Malaysia’s Targeted Relief and Recovery Mechanism to ensure business continuity.

Other measures also include six-month interest-free loans of up to RM75,000 from Agrobank and BSN and a similar program under TEKUN of loans up to RM 10,000 with a moratorium of up to one year for micro-enterprises.

Another 2.1 billion ringgit is also allocated to help companies with debt or leverage problems through equity and quasi-equity investments.

Grants, aids and incentives

Overall, the federal budget set aside RM31 billion specifically for grants, aids and incentives in the 2022 budget, with the aim of lowering the cost of living for Malaysians.

This includes the 8.2 billion ringgit allocated under the new direct cash aid incentives, dubbed Bantuan Keluarga Malaysia, benefiting some 9.6 million beneficiaries.

Some 274 million ringgit have also been allocated to the Orang Asli community, including school aid and social grants that aim to help some 200,000 people.

Other initiatives include 200 million ringgit to cover the cost of transporting and distributing general goods in rural areas.

The aid and subsidies also ensure that regions such as Sabah and Sarawak will continue to have affordable access to liquefied petroleum gas (LPG) and gasoline.

Improve the Bumiputera community and strengthen Islam

The federal government has also allocated R11.4 billion to empower the Bumiputera community and Islam for 2022.

This included 6.6 billion RM to provide access to education for Bumiputera students under MARA, UiTM dan Yayasan Peneraju.

Another 4.8 billion ringgit will also be disbursed through financing facilities under Perbadanan Usahawan Nasional Berhad, TEKUN Nasional and Dana Kemakmuran Bumiputera.

The government has also set aside 200 million ringgit to encourage young Bumiputera to undertake small-scale federal projects.

The government has also allocated 1.5 billion ringgit for Islamic affairs under the Prime Minister’s Department for Development and Expenditure.

This includes building a religious secondary school in Labuan at a cost of RM65 million, recruiting approximately 1,000 educators under Jakim’s leadership, and making a one-time payment of RM 500 each to approximately 70,000 prominent people. nuns and teachers.



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