Budget for prosperity

Focus on 3 main thrusts; 12 key strategies to reclaim ‘Economic Tiger’ status

The three main thrusts

• Institutional reforms
• People’s wellbeing
• Promotion of entrepreneurial culture

The 12 strategies
> Strengthening fiscal management
> Restructuring and rationalising  government debt
> Increase government revenue
> Ensuring welfare and quality life
> Increasing job opportunities
> Improving quality of healthcare  services and social welfare  protection
> Increasing disposable income
> Education for a better future
> Initiating new economic power
> Grabbing opportunity to face  global challenge
> Redefining government’s role in business
> Ensuring economic fairness and  sustainable economic growth

 

HIGHLIGHTED

• Pan Borneo Highway project in Sabah and   Sarawak to continue, subject to cost  rationalisation study.

• RM500 special payment for civil servants  up to Grade 54 and RM250 for government  pensioners.

• Credit system for sales tax deduction from  January 2019 to avoid double taxation  and to reduce business costs. 

• Special voluntary disclosure programme for  taxpayers to declare unreported income.

• Inland Revenue Board to investigate  extraordinary wealth.

• Government to recoup at least RM1 billion from  anti-smuggling and anti-fraud efforts.

• Departure levy proposed for all international  outbound air passengers from June 1, 2019.

• Casino licence fee up from RM120 million  to RM150 million annually.

• Machine dealer’s licence will be raised  from RM10,000 to RM50,000 annually, while tax on  gaming machines also up from 20% to 30%  of gross collection.

• Government expects to collect revenues of RM261.8 billion, including special
Petronas dividend of RM30 billion.

• Government to improve cost of living aid for B40 group, to be given in a more targeted manner, with 4.1 million households expected to continue receiving financial aid from government via RM5 billion allocation.
> Households with monthly income of RM2,000 or lower to get RM1,000.
> Households with monthly income between RM2,001 and RM3,000 to get RM750 
> Households with monthly income of between RM3,001 and RM4,000 to get RM500 

• Government will subsidise RON 95 petrol for cars with the engine capacity of 1,500cc, and below, and those with motorcycles with engine capacity of 125cc and below.

• Price of RON 95 will be floated based on Automatic Price Mechanism (APM).

• RM10 million allocation to work with NGO  and social enterprises .

• One-off assistance of RM500 will be paid  to pensioners who are receiving pensions of  less than RM1,000.

• Minimum wage to increase to RM1,100  nationwide starting Jan 1, 2019.

• RM29 billion proposed for healthcare,  up 7.8 % over previous budget

• RM50 million set aside to treat patients with  rare diseases, Hepatitis C and haemodialysis treatment

• RM100mil for Health Protection Scheme  with health screening pilot project for  800,000 people from B40 group ages 50  and above.

• Excise duty of 40 sen per litre on two  categories of sugary drinks, starting April 1, 2019

• RM1.5 billion to build and complete  affordable homes

• RM1 billion fund for first time house buyers  with income less than RM2,300 per month.

• Government to freeze toll charges on all highways in 2019 with financial implication of RM700 million.

• Education Ministry to get biggest allocation  of RM60.2 billion, including RM2.9 billion  education aid proposed for disadvantaged  students.

• Tax exemption for companies that assist its staff to settle their PTPTN loans by the year ending 2019.

• Individual tax exemption for SSPN Saving  Scheme increased from RM6,000 to RM8,000.

• RM100 million earmarked to prepare  Malaysian athletes for 2020 Tokyo Olympics.

• RM926 million allocated to build and  upgrade roads including in rural areas and  bridges.

• Access to power and water supplies in rural  areas to be improved with allocations of  RM694 million and RM738 million respectively.

• RM10 million to set up another 50 childcare  facilities in government buildings.

• RM2 billion proposed to encourage investment  in green technology industries.

• Budget provides a total allocation of  RM314.5 billion compared to RM290.4 billion  in 2018 – with RM259.8 billion allocated for operating expenditure  and RM54.7 billion for development expenditure.

• RM286.8 million proposed for MACC operating expenditure.
> See Pgs 3, 4, 5, 6, 8, B1, B2 & B4 for more
Budget 2019 and Economic Report stories