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
