Malaysia · Proposed legislation
Malaysia proposes CAKNA stamp-duty extension and reintroduction
On 9 October 2026, Malaysia’s Prime Minister and Minister of Finance, Anwar Ibrahim, proposed extending CAKNA I stamp-duty relief and reintroducing CAKNA II relief in Budget 2027.
- Official document:
- Budget 2027 Tax Measures, Appendix 20; Stamp Act 1949 (Act 378), section 80
- Development date:
- 2026-10-09
Two schemes, different financing needs
Appendix 20 distinguishes CAKNA I, which provides earlier payment through the sale of approved invoices after government contracts are completed, from CAKNA II, which finances implementation and completion of government contracts worth up to RM1.5 million. The measures target MSMEs and small contractors, rather than financing generally.[1]
For CAKNA I, the proposed remission would remove stamp duty exceeding RM10 on principal loan or financing agreements executed from 1 January 2029 to 31 December 2030. The Budget presents this as a two-year extension beyond the existing period it describes as ending in 2028.[1]
For CAKNA II, equivalent treatment is proposed for agreements executed from 1 January 2027 to 31 December 2030. Appendix 20 describes the previous period as ending in 2025: this is a proposed reintroduction, not evidence that relief applies throughout 2026.[1]
The announcement is not the relief instrument
The statutory framework is the Stamp Act 1949 (Act 378). In IRBM’s text as at 1 January 2024, section 80 distinguishes relief granted by gazetted orders for classes of instruments from the Minister’s power to exempt, reduce or remit duty in particular cases or schemes. That dated text explains the distinction between a Budget announcement and implementing relief; it does not establish the terms of any CAKNA-specific approval or certify the complete current statutory position.[3]
For businesses working with government contractors, the announced measures concern financing cost and cash flow. They are not an announced income-tax exemption for contract profits, nor a concession for every form of borrowing.[2]
Keep proposal and entitlement separate
Before applying relief to an instrument, establish the applicable ministerial authority and its conditions. This brief reports the October proposal, not independent confirmation of historical approvals or a present right to remission. Neither the Budget speech nor the general statutory power should be used as a substitute for that transaction-specific legal check.[2][3]
Official sources
- [1] Budget 2027 Tax Measures — Appendix 20
Ministry of Finance Malaysia · Document date: 2026-10-09
Full Appendix 20, printed pages 26–27 / PDF pages 26–27, web lines 572–604: scheme descriptions, Budget-stated comparison, proposals and execution periods. All 36 appendix headings also read. Historical scheme approvals not independently certified.
- [2] Speech: The Fifth MADANI Budget 2027
Prime Minister’s Office Malaysia · Document date: 2026-10-09
Date, actor and presentation lines 38–54; full paragraph 69 and adjoining context lines 549–567, especially CAKNA announcement line 562. Web extraction omits one terminal year; Appendix 20 supplies exact periods. Not a claim that the entire speech was read this run.
- [3] Stamp Act 1949 (Act 378) — updated text as at 1 January 2024
Inland Revenue Board of Malaysia / Laws of Malaysia · Document date: 2024-01-01
Cover/date/authentic-text qualification; full section 80(1), (1A), (2) and (3), printed pages 74–75 / PDF pages 74–75, web lines 2175–2201. Selected text read, not whole current October 2026 Act or scheme approval.