Budget 2011

October 15th, 2010 by poobalan | View blog reactions Leave a reply »
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This is summary of Malaysian Budget 2011 which was presented live by PM Najib from 4pm till 5.42pm.

Basic Info:

  • RM212b for budget, 2.8pc higher than 2010
  • Of entire budget, RM162.8b for operating expenses & RM49.2b for development expenditure.
  • Income per capita will increase 6.1% to RM28,000 while income in terms of purchasing power parity to US$16,000
  • Govt aims to achieve 6% growth in 2011
  • Federal Government deficit to decline to 5.4pc of GDP in 2011, from 5.6pc in 2010.
  • Government revenue collection is estimated to increase 2.3% to RM165.8 billion in 2011, up from RM162.1 billion in 2010

The Good

  • Government will extend tax relief of up to RM5,000 to help parents w/ expenses such as daycare, caretakers & other daily needs
  • Govt will increase pre-school enrolment rate to a targeted 72% by end-2011 through an additional 1,700 classes.
  • RM20mil to increase PhD qualified academic staff to 75% in research unis, to 60% in other higher learning institutions.
  • Govt will increase pre-school enrolment rate to a targeted 72% by end-2011 through an additional 1,700 classes.
  • RM40b MRT to begin in 2011, ready by 2020.
  • import duty on approximately 300 goods preferred by tourists and locals, at 5% to 30%, be abolished.
  • 50pc stamp duty exemption for first-time house buyers for houses not exceeding RM350,000.
  • RM576mil allocated in the form of scholarships for those wishing to further their studies
  • RM500 financial assistance to government staff RM500 Special Financial Assistance for civil servants Grade 54 & below in December 2010.
  • No increase of toll rates for next 5 years in PLUS highways.
  • Mobile phones exempted from 10pc sales tax effective Oct 15.
  • To revitalise capital market activities, the Govt will launch a Private Pension Fund in 2011
  • To assist children, particularly low-income, excel academically, the 1MDB will provide multi-vitamins for primary school pupils
  • A mixed development project including affordable houses to be developed at a cost of RM10 billion in Sungai Buloh and is expected to be completed by 2025 (hopefully more of the “affordable” types rather than luxury types]

And The Bad:

  • A new landmark, Warisan Merdeka, expected to be completed in 2020, will include a 100-storey tower, the tallest in Malaysia costing RM5 billion [another mega project!]
  • Rate of service tax be increased from 5% to 6%. [increase in everything from handphone bill to KFC to Astro!]
  • New 6pc service tax for paid TV broadcasting service effective Jan 2, 2011. [affects Astro users]
  • RM250mil for development expenditure to schools: religious, Chinese-type, Tamil national, missionary, Government-assisted [too little! If divide by four, its just RM 62 million].
  • Govt will enforce basic minimum wages for security guards, to between RM500 and RM700 a month depending on location [The minimum wage should be more than poverty line. Should be set to minimum RM700 to RMxxx]
  • Government allocates RM100 million for Orang Asli & Pribumis. [Again, too little!]

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