Kuala Lumpur: Prime Minister Datuk Seri Najib Razak on Friday unveiled a budget aimed at winning votes in an election that must be held by August.The budget allocates a sum of RM280.25 billion, with RM234.25 billion for operating expenditure and RM46 billion for development.Revenue collection for next year is expected to record RM239.86 billion, Najib said when tabling in the Dewan Rakyat his ninth budget as the Finance Minister, with Barisan Nasional MPs wearing blue Baju Melayu or suits.
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Gross Domestic Product (GDP) is to expand 5-5.5 per cent (2017:5.2-5.7 per cent). Total investment is expected to increase by 6.7 per cent, accounting for 25.5 per cent of GDP in 2018.Private investment is estimated to reach RM260 billion in 2018 (2017: RM230 billion). Public investment is estimated to record RM109 billion.
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Following are the goodies:- Civil Servants: The country's 1.6 million civil servants to receive a special payment of RM1,500 of which RM1,000 to be paid in January 2018 while the balance during Hari Raya Aidilfitri;
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- Government retirees to receive special payment of RM750 of which RM500 will be paid in January 2018 while the balance during Hari Raya Aidilfitri;- Income Tax: Individual income tax rates reduction of two percentage points for income tax band between RM20,000 and RM70,000, which will increase disposal income between RM300 and RM1,000;- Reading Materials: Zero-rated GST for reading materials comprising all types of magazines and comics, effective Jan 1, 2018;- Cruise Operators: Cruise operators are given relief from paying GST on handling services provided by port operators in Malaysia, effective Jan 1, 2018 to Dec 31, 2020;- Construction: Construction of school buildings, and houses of worship funded through donations are given GST relief – applies for construction contract signed on or after April 1, 2017;- Management and Maintenance: The management and maintenance service of stratified residential buildings supplied by the joint management body and management corporations are not subjected to GST – this treatment expanded to management and maintenance provided by housing developers, effective Jan 1, 2018;- Oil and Gas: Imports of oil and gas-related equipment under a lease agreement, supplied to customers in Malaysia by companies in designated areas, namely Labuan, Langkawi and Tioman are given GST relief, effective Jan 1, 2018;- GST: GST relief are also given to companies in the oil and gas industry importing oil rigs or floating structures, effective Jan 1, 2018;n Imports of big ticket items such as aircraft and ships by airlines and shipping companies registered in Malaysia are given GST relief;- Service by local authorities will not be subjected to GST, effective April 1 or Oct 1, 2018, according to the choice of local authorities;- MRT2 Sungai Buloh-Serdang-Putrajaya Line project to cost about RM32 billion;- Government to expedite construction of MRT3 or Circle Line, set for completion by 2025;- Government to allocate RM230 million in 2018 for the central spine road from Raub to Bentong and Gua Musang, Kelantan to Kampung Relong, Pahang;- Principal Hub Tax Incentive will be extended until Dec 31, 2020;- The government to allocate RM200 million to the high-impact strategic fund under MIDA;- RM7 billion to be allocated under the Skim Jaminan Pembiayaan Perniagaan, of which RM5 billion will be for working capital and RM2 billion with 70 per cent guaranteed by the government for the services sector;- Loans: RM1 billion will be provided as loans to companies with 70 per cent guaranteed by the government;- Syariah-compliant: RM1 billion will be provided to the Syariah-compliant SMEs financing scheme, increasing the fund size to RM2.5 billion; - SMEs: RM200 million is allocated to SMEs for training programmes, grants and soft loans under the SME Corp; - Halal Industries: RM82 million allocated for the development of Halal Industries and Products under various agencies; - RM500 million allocation for TEKUN; - RM200 million allocation for Amanah Ikhtiar Malaysia increasing the fund size to RM2.7 billion; - RM80 million allocated under the Rural Economic Financing Scheme through Bank Rakyat and SME Bank to provide financing facilities to rural Bumiputera entrepreneurs;- RM150 million will be provided to Matrade, MIDA and SME Corp to implement promotional programmes and expand export markets, including Market Development Grant;- RM1 billion is provided to Exim Bank for insurance coverage credit facilities and RM200 million for credit financing facilities to SME exporters;- RM100 million is provided as loans with 70 per cent guaranteed by the government to automate production of local furniture for exports;- Duty-free Island: Pulau Pangkor in Perak to be declared as a duty-free island but the status excludes products such as alcoholic beverages, tobacco and motor vehicles.- A Special Border Economic Zone in Bukit Kayu Hitam will be developed;- Jetties: RM95 million is allocated to upgrade and construct jetties, as well as dredge river estuaries;- RM45 million is allocated to develop a biometric control system to monitor bus drivers;- RM55 million is provided to subsidise train services in rural areas, from Tumpat to Gua Musang;- Airport: Pulau Pinang International Airport and Langkawi International Airport will be upgraded;- A new airport in Mukah will be constructed, while airports in Kota Bharu and Sandakan will be expanded;- RM1.5 billion is allocated under SJPP, using intellectual property as an instrument of financial collateral with up to 80 per cent financing guarantee;- Provide tax exemption and stamp duties imposed on contract notes for sales and purchase transactions of Exchange-Traded Fund and Structured Warrants, effective January 2018;- An alternative trading system to be introduced, subject to compliance to all requirements and regulatory standard;- RM1 billion will be provided by major institutional investors for investments venture capital in main selected sectors, coordinated by SC;- Income tax exemption for recipients of the special green Sustainable and Responsible Investment Sukuk grant totalling RM6 million;- Additional tax deductions are extended to cover employers hiring workers affected by accidents and critical illness and certified by Socso medical board that they are fit to work;- Savings Fund: Every Malaysian born from Jan 1, 2018 to 2022 will be provided with an Initial Savings Fund of RM200 through PNB's Unit Trust Scheme, Amanah Dana Anak Malaysia (ADAM50);- RM200 million for Program Keusahawanan dan Premis Perniagaan PUNB;- RM200 million is allocated for Program Keusahawanan Mara;- RM155 million for programmes such as vendor capacity development, Tunas Usahawan Belia Bumiputera (TUBE), Skim Usahawan Permulaan Bumiputera (SUPERB) and Skim Anjakan Usahawan;- RM150 million provided to Perlaburan Hartanah Bhd and another RM150 million to Ekuiti Nasional Bhd;- Step up financing scheme by PR1MA will be extended to private housing developers subject to criteria;- Abandoned Housing: Abandoned housing projects stamp duty exemption for loan agreements and letter of consent to transfer are given to rescuing contractors and original owners of abandoned projects, effective Jan 1, 2018 to Dec 31, 2020;- To promote rental of residential homes, government propose a 50 per cent tax exemption on rental income received by resident individuals not exceeding RM2,000 per month for resident individuals (assesment of 2018-2020);- Women: Require at least 30 per cent participation of women as board of directors in GLCs and GLIC, as well as statutory bodies by end-2018;- RM20 million allocated to conduct training and entrepreneurship programmes- RM245 million matching grant under the Domestic Investment Strategic Fund to upgrade the Smart Manufacturing facilities;- Extension of the incentive period for accelerated capital allowance of 200 per cent on automation equipment from year of assessment of 2018-2020;- Capital allowance for ICT equipment, which includes spending on computer software development, is claimable for the period of four years beginning year of assessment of 2018 to 2020, including for SMEs;- RM5 billion allocated under the Green Technology Financing Scheme to promote investment in green technology industry;- Water: RM1.4 billion for non-revenue water programme to reduce average loss of water;- RM1.3 billion to construct Off-River Storage as an alternative water resources;- RM517 million for flood mitigation programmes;- RM83.5 million to construct infrastructure of first phase of DFTZ in Aeropolis KLIA; and- Increase the minimum value for imports to RM800 from RM500 to establish Malaysia as regional e-commerce hub. - Farmers, Fishermen: RM6.5 billion is provided to assist farmers, fishermen, smallholders and rubber tappers to implement various programmes, including RM2.3 billion to provide assistance and incentives such as fertilisers and input to padi farmers, rubber smallholders and fishermen.- Visit Malaysia Year: 2020 is declared as Visit Malaysia Year. Malaysia will host a series of international meetings in 2020, namely APEC, WCIT and CHOGM.- RM2 billion is allocated to the SME Tourism Fund to provide soft loans to tour operators with an interest subsidy of 2 per cent. - An additional RM1 billion is allocated to the Tourism Infrastructure Development Fund as soft loans. - RM30 million is allocated to Malaysian Healthcare Travel Council (MHTC) to implement initiatives, among them to promote Malaysia as the Asian Hub for Fertility Treatment, IVF and Cardiology; to introduce the Flagship Medical Tourism Hospital Programme. - The construction of the East Coast Rail Link project connecting Port Klang to Pengkalan Kubor, Kelantan, to begin in January 2018.- Public Transportation Fund: RM1 billion is allocated to the Public Transportation Fund for working capital and procurement of assets such as buses and taxis. - TN50 Generation: A total of RM250 million is allocated to education for the TN50 generation to develop programmes, among them to enhance the computer science module including coding programme; and RM190 million to upgrade 2,000 classes into 21st Century Smart Classrooms. - RM2.2 billion is allocated for scholarships to be provided by the Public Service Department, Ministry of Higher Education and Ministry of Health. - Sports Complexes: 14 new sports complexes costing RM112 million to be built nationwide. - Education: A sum of RM61.6 billion is provided for the education sector, of which RM654 million is allocated for construction of four pre-schools, nine Permata centres, 48 primary and secondary schools and vocational colleges and one matriculation centre. - The government is to extend discount for repayment of PTPTN loans until Dec 31, 2018. - RM4.9 billion is allocated to implement the TVET Malaysia Masterplan. - RM2.5 billion, highest allocation ever, to be provided for higher education scholarship and training programmes under Mara, benefiting nearly 90,000 students. - RM6.5 billion is allocated to provide basic infrastructure in the rural areas. - RM1 billion is allocated through MCMC to develop communication infrastructure and broadband facilities in Sabah and Sarawak. - RM300 million is allocated to implement NBOS programmes. - The government is to reimburse cess money paid by settlers for rubber and oil palm replanting schemes from 2010 to 2016. - Mmea: RM14 billion is allocated for MAF, almost RM9 billion for the police, over RM900 million for MMEA to increase safety at borders and enhance public order. - RM3 billion is allocated for procurement and maintenance of defence assets. - Police: RM720 million is allocated to build 11 headquarters, six police stations and to purchase firearm fittings as well as operation vehicles. - 10,000 housing units are to be constructed for police personnel under the 1Malaysia Civil Servants Housing-PDRM (PPA1M-PDRM) at an affordable price according to the police salary scheme. >RM250 million is allocated to ESSCOM to enhance security controls at Sabah and Sarawak borders. - Amanah Saham: PNB to distribute additional 1.5 billion Amanah Saham 1Malaysia units for the Indian community, up to 30,000 units for each investor. - RM3,000 to be provided to Orang Asli parents in preparing their children's enrolment in higher learning institutes. - Subsidies: RM3.9 billion is allocated for goods and transport subsidies including cooking gas, flour, cooking oil, electricity and toll. - Kedai Rakyat: 50 Kedai Rakyat 1Malaysia (KR1M) outlets to be transformed to KRIM 2.0 in 2018, additional 3,000 outlets within 3 years. - Domestic Helpers: Government to review the cost of hiring foreign domestic helpers with a view of reducing it in the future; to allow employers to hire foreign domestic helpers directly from nine selected countries. - RM2.2 billion is allocated for the construction of 17,300 PPR homes; 3,000 People Friendly Homes under SPNB, and 210,000 PR1MA homes with prices of RM250,000 and below, to increase home ownership among the rakyat. - RM27 billion is allocated to provide quality healthcare services. - Government to provide a matching grant worth RM245 million under the Domestic Investment Strategic Fund to upgrade Smart Manufacturing facilities in supporting Industrial Revolution 4.0. - Green Technology: RM5 billion is allocated under the Green Technology Financing Scheme to promote investments in green technology industry. - Welfare: RM1.7 billion is allocated for the welfare of senior citizens, people with disabilities and children. - For civil servants, government to introduce second time-based promotion for support staff after 13 years from first promotion. - From fifth-month of pregnancy onwards, working women will be allowed to leave work an hour earlier, along with their husband on condition the couple are working within the same location. 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