Breaking Down Malaysia's Budget 2023

Key Initiatives for Public Healthcare, Education, And Infrastructure

The Malaysian government just re-announced its Budget 2023, highlighting various initiatives aimed at boosting the country's economy and providing support to its citizens. The budget allocation for the year is RM317.1 billion, with a focus on improving public healthcare, education, and infrastructure. In this post, we'll explore the different initiatives announced in the budget and group them into several categories for easier understanding.


A man is seen dividing his income for easier budgeting

Economic growth and tax policies:


  • The government predicts a 4.5% economic growth for the year.


  • The Luxury Goods Tax is being implemented this year, and a Capital Gains Tax on unlisted shares may be introduced in 2024.


  • The government will not implement the Goods and Services Tax (GST) due to high food inflation and low wages.


  • The government supports the Generational Endgame and will reallocate half of the excise duty to the Health Ministry to improve healthcare services.

 


Infrastructure and technology:


  • RM50 million is allocated for building and upgrading small hawker stalls and kiosks across the country.


  • RM176 million is provided for upgrading business facilities, including those of MARA, DBKL, PUNB, and UDA.


  • RM725 million is allocated to implement digital connectivity across 47 industrial areas and almost 3,700 schools.


  • Efforts will be made to ensure comprehensive 5G coverage and reasonable prices for the people.


  • RM1 billion will be allocated to strengthen domestic safety, including acquiring more than 2,100 units of body cameras for the Royal Malaysia Police.


  • Border control posts and ships and boats of the MMEA will be maintained and upgraded.


  • Over 7,000 affordable housing units will be built under the One Member, One Household Programme for the Malaysian Armed Forces in Kuala Lumpur.

 


Environmental initiatives:


  • RM150 million is provided by Khazanah to boost environmentally-friendly project development, including supporting carbon markets and reforestation.


  • The Green Technology Financing Scheme (GTFS) is improved, with the guaranteed value increased to RM3 billion until 2025.


  • The period of the Green Investment Tax Allowance and Green Income Tax Exemption is extended until December 31, 2025.


  • Self-employed individuals will be required to contribute to Skim Keselamatan Sosial Pekerjaan Sendiri.


  • RM5 billion is allocated for the Housing Credit Guarantee Scheme for 20,000 eligible borrowers.


 

Social programs and initiatives:


  • The government will establish a National Land Committee Waqf to contribute to the expansion of the Islamic social finance sector by 2030.


  • Efforts will be made to complete repairs for 400 dilapidated clinics and 380 dilapidated schools.


  • SOCSO will provide incentives to employers who employ 17,000 graduates and vulnerable groups, such as the disabled, ex-convicts, homeless, and unemployed.


  • Schools will be provided with 50,000 laptops, and RM108 million is allocated for Program Makanan Prasekolah and RM777 million for Rancangan Makanan Tambahan.


  • Income tax policies are revised for different income groups.


  • The Sumbangan Tunai Rahmah program will provide RM8 billion in cash aid to 8.7 million people, and essential goods and childcare subsidies will also be provided.


  • Efforts will be made to combat child pornography and reintegrate inmates into society through the Skill for Inmate program.

 


Infrastructure and Development:


  • RM50 million provided for building and upgrading small hawker stalls and kiosks across the country.


  • RM176 million allocated for upgrading premises and business facilities including MARA, DBKL, PUNB and UDA.


  • RM725 million provided to implement digital connectivity in 47 industrial areas and nearly 3,700 schools.


  • RM2.5 billion provided to implement public infrastructure projects in Sabah and Sarawak.

 


Healthcare and Education:


  • RM36.3 billion allocated to the Health Ministry, including nearly RM3 billion for the appointment of more permanent and contract health workers [I'm responding to this in particular from a Medical sales rep point of view to the budget].


  • RM80 million allocated for the PEKA B40 health scheme.


  • RM120 million allocated for Skim Perubatan Madani to help the poor access to health services.


  • RM15.3 billion allocated to the Higher Education Ministry.


  • Schools will be provided with 50,000 laptops.


  • RM108 million allocated for Program Makanan Prasekolah and RM777 million for Rancangan Makanan Tambahan to benefit students.


  • RM560 million allocated to build seven new schools.


  • RM35 million allocated to improve internet connectivity in higher education institutions.


  • RM436 million allocated to improve and replace old infrastructure in public varsities.

 


Economy and Finance:


  • Luxury Goods Tax and Capital Gains Tax are planned to be introduced from 2023 and 2024, respectively.


  • The government plans to extend the period of the Green Investment Tax Allowance and Green Income Tax Exemption until December 31, 2025.


  • Bank Negara provides loans to support sustainable technology start-ups and help SME companies implement low carbon practices.


  • The Consumer Credit Act will be enacted and a Consumer Credit Monitoring Board will be established to regulate the credit business.


  • RM428 million allocated for research and development activities.


  • Income tax for micro SMEs reduced from 17% to 15% for the first RM150,000.


  • Income tax for those earning between RM35,000 to RM100,000 reduced by 2%.


  • Personal income tax for those earning between RM100,000 to RM1 million increased by 0.5% to 2%.


  • RM1 billion in loans to help improve local food production.


 

Social and Security:


  • RM100 a day allowance for search and rescue personnel who help with relief efforts in Turkey and Syria.


  • RM350 in special Aidilfitri aid for government pensioners and RM700 for all civil servants Grade 56 and below, including contract workers.


  • SOCSO will amend its act to allow the granting of a grant equal to 80% of the value of the insured salary employee for women returning to work after giving birth.


  • RM45 million provided to give incentives to employers who employ 17,000 graduates, especially from TVET.


  • RM100 million allocated to help self-employed individuals with their contributions to Skim Keselamatan Sosial Pekerjaan Sendiri.


  • RM225 million allocated for essential goods for the poor.


  • RM100 million allocated for Jualan Rahmah sales in all Parliamentary constituencies.


 

Others:


  • A MADANI Endowment with assets worth over RM 1 billion will be created by the private sector.


  • The government will establish a National Land Committee Waqf with the objective of contributing 20 percent of the expansion Islamic social finance sector by 2030.


  • The Whistleblower Act will be amended to provide greater protection for those who provide information in the fight against graft and other wrongdoings.


  • The government to cover training fees up to RM4,000 for gig workers undergoing micro credentials skills improvement programs.


  • To promote local food production, the government is providing RM1 billion in loans. Additionally, income tax for those earning between RM100,000 to RM1 million a year is increased by 0.5 per cent to 2 per cent, affecting less than 150,000 people. On the other hand, personal income tax is reduced by 2 per cent for those earning between RM35,000 to RM100,000, benefiting around 2.4 million taxpayers.


  • In a move to help youths, the government is providing RM400 million in e-credit for two million youths aged 18 to 20, at RM200 each. The government will also allocate RM8 billion in cash aid under Sumbangan Tunai Rahmah (STR), benefiting 8.7 million people. The poorest will receive up to RM3,100.


  • To assist the poor, RM225 million is allocated for essential goods, and RM100 million for Jualan Rahmah sales in all parliamentary constituencies, which will see essential items being sold for 30 per cent less than market prices. Civil servants will also receive RM180 in childcare subsidy per month, while households with income of RM7,000 and below qualify for this.


  • In terms of safety, a special unit in the police force will be established to combat child pornography. Employers who hire inmates, including former residents of the Henry Gurney school and other institutions, are eligible for additional tax deductions. The government also introduces the Skill for Inmate program to assimilate inmates back into society. 

No comments:

Post a Comment