Millions to say goodbye to youth: Which new policies in 2026 affect you?

Why is this topic relevant to me?

From 2026 onwards, Malaysia will adjust its definition of “youth”, meaning millions will officially bid farewell to youth – could you be one of them? Newsgraphy has specially compiled the new policies our country will introduce next year. Let’s take a look!

Youth Age Limit Lowered to 30

Are you still considered a youth? From 2026, Malaysia’s upper age limit for youth will be reduced from 40 to 30 years old.

According to the Youth Societies and Youth Development (Amendment) Act 2019, the age limit for joining youth organisations is 15 to 30 years old, with organisational leaders aged between 18 and 30, and a term limit of four years.

Data from the Ministry of Youth and Sports shows that 8,272 youth organisations are registered with the Registrar of Societies, encompassing nearly 100,000 organisational leaders, of which 54% (53,535 people) are under 30 years old.

Although the Federal Government is lowering the youth age limit, the Sarawak Government is not bound by this and will maintain its existing definition of youth as those aged 15 to 40.

Fully Implementation of E-Invoice

From 2026, Malaysia will fully implement the e-Invoice system, though companies with annual turnover below RM1 million will be exempted from mandatory usage.

E-invoices refer to the electronic recording of transactions between suppliers (sellers) and buyers. They clearly record transaction details such as item descriptions, quantity details, pre-tax product prices, tax amounts, and total transaction amounts, with all transaction records backed up in the Inland Revenue Board (LHDN) database.

Since its launch on 1 August last year, more than 820.5 million e-invoices have been issued nationwide, involving over 111,600 taxpayers. The Inland Revenue Board states that this figure includes not only taxpayers from phases one to three who are mandatorily required to implement e-invoices, but also taxpayers who voluntarily participated in phase four.

Local Tourist Attraction Admission Fees Become Tax-Deductible

Good news for those wanting to explore Malaysia!

In conjunction with Visit Malaysia 2026, to encourage domestic tourism, the Government will provide individual income tax relief of up to RM1,000, covering expenditure on admission fees to local tourist attractions and cultural activities.

Pay Earlier, Pay Less – Encouraging Traffic Offenders to Settle Fines Voluntarily

From 2026, a unified “pay earlier, pay less” principle will be adopted nationwide, replacing the previous approach of offering discounts on traffic summons through special programmes or campaigns.

In the past, the Government periodically launched discount campaigns, but some argued this was unfair to those who settled their fines promptly.

In view of this, the Government has decided to adopt a tiered reduction system to encourage drivers to settle their fines voluntarily, ensuring consistency and fairness in nationwide road traffic enforcement.

EPF Account 2 Can Be Used to Purchase Medical Insurance

To encourage more people to take out medical insurance, the Employees Provident Fund’s (EPF) existing i-Lindung insurance scheme will include health insurance and takaful from 2026.

This means members can use their savings in Account 2 (Akaun Sejahtera) to purchase medical and health insurance or takaful (MHIT).

Poor Students Can Attend University for Free

Under the 2026 Budget, the National Higher Education Fund (PTPTN) provides a “timely relief” for students from poor and hardcore poor families.

Under this new measure, children from poor and hardcore poor families registered in the e-Kasih system (i.e. with monthly household income below RM2,705) will have their PTPTN loans automatically converted to scholarships, allowing poor students to complete their university courses without financial burden.

Authorities estimate that approximately 5,800 students from poor families nationwide will benefit from free higher education, with the Government allocating RM120 million annually to fund this programme.

Civil Servants Get Another Pay Rise

Civil servants registered under the Public Service Remuneration System (SSPA) will receive their second phase salary adjustment from January 2026, with the increase calculated based on their final salary as at 31 December, involving a total salary increase of RM18 billion.

In the second phase pay rise, the Executive Group and Management & Professional Group (P&P) will receive a 15% increase, whilst the Senior Management Group (KPT) will receive a 7% increase.

The Public Service Department (JPA) notes that whilst the new adjustment takes effect from 1 January 2026, actual payment will be made on 22 January, the designated payday for that month.

Scrap Cars Over 20 Years Old for New Ones – Get Up to RM4,000 Subsidy

Given that old vehicles pose safety risks and are not economically viable, the Government is collaborating with national car companies to provide a matching grant of up to RM4,000 for car owners wishing to scrap vehicles over 20 years old, encouraging them to scrap old cars and purchase new national cars.

Additionally, the Government is providing tax exemption incentives for taxi drivers purchasing new vehicles, helping to drive transformation in the taxi industry.

Children Under 16 Prohibited from Opening Social Media Accounts

Communications Minister Fahmi Fadzil has announced that from 2026, children under 16 in the country will be prohibited from opening personal social media accounts. If they need to use social media, they must browse together under parental supervision.

Authorities are also requiring social media platforms to implement electronic Know Your Customer (eKYC), such as identity verification through MyKad or MyDigital ID, to verify users’ ages.

This policy draws on the experiences of countries like Australia and aims to protect children from online fraud and crime by strengthening parental supervision and platform responsibility, creating a safer online environment.

Meanwhile, the Malaysian Communications and Multimedia Commission has visited 8,216 schools and institutions of higher learning to promote safe internet usage campaigns amongst primary and secondary school students.

“Litterbugs” Must Perform 12 Hours of Community Service

From 2026, Malaysia will officially implement the Solid Waste and Public Cleansing (Amendment) Act 2025. Anyone convicted of littering in public places must perform community service totalling no more than 12 hours within six months, as well as face a maximum fine of RM2,000.

Under this law, no one is exempted, including foreign tourists.

Authorities emphasise that this measure is not intended as punishment, but rather to educate the public about the importance of environmental cleanliness and to change the habit of carelessly discarding rubbish.

This article has been translated from its original Chinese version.

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