Budget 2013 highlights
Malaysia Budget 2013
Image : thesundaily.my
Budget 2013 was successfully tabled today by the Prime Minister Datuk Seri Najib Abdul Razak at Parliament. With a total allocation of RM251.6 billion for next year, many Malaysian can now smile with some incentives and goodies.
The 2013 Budget will focus on improving the quality of life of the rakyat, ensuring sustainable economic growth, spending prudently and reducing the fiscal deficit with the overall objective of prioritising the well-being of the rakyat. The Government will ensure that the rakyat enjoys excellent services and obtains maximum benefits from the implementation of development projects and programmes.
The 2013 Budget is designed based on the theme “PROSPERING THE NATION, ENHANCING WELL-BEING OF THE RAKYAT: A PROMISE FULFILLED”
Of the amount, RM201.9 billion is for Operating Expenditure while RM49.7 billion is for Development Expenditure.
Najib explained that under Operating Expenditure, RM58.6 billion is set aside for Emoluments and RM33.7 for Supplies and Services. Meanwhile, RM107.3 billion is allocated for Fixed Charges and Grants, while RM1.1 billion is provided for the Purchase of Assets. The remaining RM1.2 billion is for Other Expenditures.
As for Development Expenditure, RM30 billion is allocated for infrastructure, industrial, agriculture and rural development. A total of RM11.1 billion is planned for the social sector including education and training, health, welfare, housing and community development. In addition, RM4.6 billion is allocated for the development of the Security Sector, RM2 billion for General Administration and RM2 billion for Contingencies.
Malaysia Economy Outlook 2013
Image : thesundaily.my
Budget 2013 highlights
- Economic growth projected to expand 4.5 per cent to 5.5 per cent.
- Nominal GDP expected to surpass RM1 trillion.
- Federal Government’s revenue in 2013 is estimated to increase to RM208.6 billion.
- Pivate sector investment is to increase to RM148.4 billion.
- RM251.6 billion allocated for the implementation of development projects, programmes and measures, with focus on the well-being of the rakyat and national development.
- RM201.9 billion is for Operating Expenditure while RM49.7 billion for Development Expenditure.
- RM58.6 billion allocated for Emoluments dan RM33.7 billion for Supplies and Services.
- RM3 billion to implement Entry Point Projects
- RM1 billion for Domestic Investment Strategic Fund under Malaysian Investment Development Authority to leverage on outsourcing opportunities and intensify technology acquisition by Malaysia-owned companies
Budget 2013 : Entrepreneur
- RM1 billion SME Development Fund under SME Bank
- SME Bank and Islamic Development Bank (IDB) to provide RM200 million to Halal Industry Fund to finance working capital of participating SMEs
- RM16 million a year group insurance scheme for registered hawkers and small businesses for coverage of up to RM5,000
- Perbadanan Nasional Bhd to provide soft loans of up to RM25,000 for licensees and RM500,000 for licensors under Business In Transformation programme
- RM350 million allocated for TEKUN Financing for small to medium entrepreneurs, including RM50 million for the Indian Social Entrepreneurship Scheme.
Budget 2013 : Intellectual Property
- RM200 million for the Intellectual Property Financing Fund Scheme will be offered by Malaysian Debt Venture with the government giving an interest rate subsidy of 2% and 50% guarantee through the Credit Guarantee Corporation that enables SMEs to use intellectual property as commercial and instrumental value to get funding.
- RM19 million allocation to the Intellectual Property Corporation to establish a platform for the intellectual property market and conduct training programmes for local intellectual property valuers.
Budget 2013 : Personal Tax / Company Tax Related
DanaInfra Nasional Bhd
- DanaInfra Nasional Bhd to issue retail bonds worth RM300 million by end-2012 to finance MERT development projects
Budget 2013 : Agriculture (Plantations)
- RM3 billion allocated for the implementation of Entry Points Projects (EPPs), including RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy.
- RM30 billion allocated to the economic sector for infrastructure, industrial, agriculture and rural development.
- For the plantation sector, RM432 million is allocated under the NKEA for oil palm replanting programmes.
- RM127 million is allocated for the development of high-value oleo derivatives to transform the downstream industry towards higher production of derivatives.
- Four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan. with an expanditure of RM140 million, the four new paddy granaries with acreage of 19,000 hectares and involving 12,237 farmers are expected to produce 104,000 tonnes.
- RM230 million to be provided as incentive for fish landing as well as payment for living allowances for the fishermen. Currently, the Government provides a living allowance of RM200 per month, an incentive ranging from 10 to 20 sen per kilogramme and the introduction of Fishermen Insurance Scheme.
- RM2.4 billion is allocated to provide subsidies and incentives to assist farmers in reducing cost of production. The assistance comprises subsidies and incentives for paddy production including subsidies on paddy rice (RM480 million), paddy fertilisers (RM465 million); incentives to increase paddy yield (RM80 million), paddy production (RM563 million) and subsidies on price of rice (RM528 million) and high-quality paddy seeds (RM85 million).
- Introducing a Paddy Takaful Coverage Scheme to benefit 172,000 paddy farmers who own fields less than 10 hectares. The Government will initially allocate RM50 million for this scheme.
- RM41 million to be provided for the Azam Tani project to benefit 6,730 of the poors to increase their income.
Budget 2013 : Employment / Jobs Matters
- Securities Commission to introduce Graduate Representative Programme in collaboration with private sector to train 1,000 graduates to meet needs of securities and derivatives industry
- Bonus 1.5 months for civil servants.
Budget 2013 : Danajamin Nasional Bhd
- Danajamin Nasional Bhd to get additional RM400 million for next two years, to multiply issuance value between RM4 billion and RM6 billion
Budget 2013 : Capital Market Foundation
- RM100 million to be provided to Capital Market Foundation through Capital Market Development Fund under the Securities Commission
* Allocation of RM75 million to increase the output of food and health products.
Budget 2013 : Education
- A sum of RM38.7 is allocated to the Ministry of Education for operating and development expenditure.
- An additional allocation of RM500 million to enhance teaching skills in core subjects such Bahasa Malaysia, English, Science and Mathematics through the Higher Order Thinking Skills approach.
- RM6 billion to be allocated under the Private Financing Initiatives (PFI2) to implement projects and programmes to ensure well-being of people and spur nation’s development, including refurbishment and maintenance of schools and health clinics; housing, water tank and flood mitigation projects; and provision of sports facilities
- Schooling Assistance of RM100 to all primary and secondary students.
1Malaysia Book Voucher programme for all students in institutions of higher learning (IPT) and at pre-university level will be increased from RM200 to RM250.
Existing tax relief on the children’s higher education amounting to RM4,000 per person be increased to RM6,000, commencing from year of assessment 2013.
the current relief of RM3,000 for savings in the National Education Savings Scheme (SSPN) will be increased to RM6,000.
First, repayment of full loan within a year upon this announcement effective from 1 October 2012 until 30 September 2013, a discount of 20% will be given on their loan.
Second, for those with consistent repayment of PTPTN loan in accordance to their repayment schedule, a 10% discount per annum on their repayment will be given effective from 1 October 2012.
Felda will also spend RM100 million a year for education and skills training programme as well as scholarships for 5,000 new generation children from which 30% or 2,000 people are children outside the Felda scheme;
Budget 2013 : Property / House
- RM1.9 billion to be allocated to build 123,000 affordable housing units in strategic locations, to be implemented by PR1MA, Syarikat Perumahan Nasional Bhd and Jabatan Perumahan Negara.
- A total of RM500 million will be spent by PR1MA to build 80,000 houses in major locations nationwide with the selling price ranging between RM100,000 and RM400,000 per unit. Among the locations are Kuala Lumpur, Shah Alam, Johor Bahru, Seremban and Kuantan.
- Real property gains tax (RPGT) from disposal of properties made within two years of date of purchase to be taxed at between 15 per cent and 10 per cent of disposal of property within a period of two to five years. For property disposed of after five years from the date of acquisition, RPGT is not applicable
- RM100 million to be allocated to Housing and Local Government Ministry to revive 30 abandoned housing projects, and tax incentives to private sector to encourage its involvement in reviving the projects.
- My First Home Scheme, which was launched under the previous Budget, will be improved by increasing the income limit for individual loans from RM3,000 to RM5,000 per month or joint loans of husband and wife of up to RM10,000 per month. In addition, the requirement for a savings record equivalent to three months instalment and minimum employment of six months will be abolished.
In the 2009 Budget, the Government had given a 50% stamp duty exemption on the instrument of transfer agreements and loan agreements for the purchase of the first residential property of up to RM350,000. The Government proposes that the stamp duty exemption is extended to 31 December 2014 with the price limit on residential properties raised to RM400,000.
Budget 2013 : Developing Bumiputera Entrepreneurs
- RM9 bilion or 43% from the cost of the MRT infrastructure project are allocated to Bumiputera companies.
- RM1 billion Bumiputera Financing Fund will be prepared by SME Bank to help SMEs fund the takeover of companies belonging to GLCs that conducts non-core activities and have been identified for sale
- Working Capital Guarantee Scheme will be extended to December 2013 and extended to high performing Bumiputera companies with qualifications while shareholders’ funds increased to RM20 million.
Budget 2013 : Others
- RM11.1 billion allocated to the social sector including education and training, health welfare, housing and community development.
- RM4.6 billion allocated for the development of the Security Sector, RM2 billion General Administration and RM2 billion for Contigencies.
- RM500 million allocated for River of Life project to beautify Klang River, RM300 million to restore pipes and sewerage network for services and access to water.
- RM358 million allocated for expenditure for Visit Malaysia Year 2013/2014.
- Bantuan Rakyat 1Malaysia (BR1M). The criteria remains the same, where the head of the household earning less than RM3,000 is eligible for the assistance. In addition, this assistance will be extended to single unmarried individuals aged 21 and above and earning not more than RM2,000 a month. This assistance amounts to RM250.
Potential hajj pilgrims who contribute to the EPF
, will now be allowed to withdraw their savings from Account 2 to meet hajj cost. The initiative is limited to jemaah muassasah with a maximum withdrawal of up to RM3,000.
The full budget 2013 speech report is available at: http://www.treasury.gov.my/. Via : The Sun Daily / Bernama / NSTP
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