This years budget proposal focused on certain industries like agriculture, transportation infrastructure, green technology, health tourism, crime prevention, financial services, halal products, SME, etc.

For the man in the street, nothing much to shout about. [don’t forget to read the Mr & Mrs Malaysia Survey on Income and Finance). For a typical household  of 4 with monthly income between 2k – 8k, can’t see anything really beneficial. Let’s look at the proposals for individual:

1. Proposed increase from RM8000 to RM9000 for personal tax relief. [could have been more, at least RM10000]

2. Proposed increase for EPF and insurance from RM6000 to RM7000, but the extra RM1000 is meant for annuity schemes with insurance companies, if I read the budget correctly. [Should not be limited to annuity. Medical insurance relief should been increased too]

3. School children aged 13 above using KTM will get 50% discount on fares. [Should have included RapidKL]

4. Tax relief of RM500 for individual for broadband use (Streamyx, WiMax, Celcom/Maxis broadband etc) for year 2010 till 2012. [RM500 is not worth much. A decent package will cost RM1200 per year].

5. RM50 service charge for each credit card and RM25 for each supplementary cards, regardless the card was offered for free or not. [Should have allowed first card exemption. I use credit cards for petrol purchase, online payment, auto-billing etc, which actually reduces cost and risk of carry cash]

6. Students entering IPTA will get a netbook and broadband package for RM50 per month for two years. Up to 100,000 students will be offered first, primarily those enrolling in first year and those from low-income family. [good move!]

7. Tax of 5% charged on sale of property. Waived for once in a lifetime. Transfer between relatives, descendants not charged.  Up to RM1000o or 10% is exempted. [Is this really necessary?]

8. Establishment of 1Malaysia clinics in shophouses to cater for urban folks. [good news to reduced medical costs]

9. New scheme from EPF to allow people to buy house using FUTURE savings in Account 2 to purchase house. [This is indeed risky!]

10. Employee EPF contribution can be reverted back to 11% upon request from 2010. However, it will automatically revert to 11% from 2011 onwards.

11. Student who obtain first class results will have their PTPTN loan converted into scholarships. [good news!]

12. 30 top students will be offered National Scholarships based purely on merit to further studies in top world-class universities.

13. Those self-employed or without fixed income can opt to contributed to a 1Malaysia Retirement Scheme to be offered by KWSP. For every RM100 contribution, government will add extra 5% subject to a maximum amount of RM60 per annum. The government contribution is valid for 5 years only. [good move too]

13. A better petrol subsidy scheme will be introduced to cater for the variety of users. That may mean those using higher CC vehicles will get less subsidy. Details not available yet.

On a community note, majority of the funds/projects is expected to filter down to the rural folks, entrepreneurs, and youths from the majority community via established entities like RISDA,FELDA, TEKUN, JAKIM, MARA etc. The Indians are allocated RM20 million under TEKUN for the coming year.

Unfortunately, no increase in alcohol and tobacco taxes.

The budget presentation went on smoothly except at the end, when the PM mentioned about Bagan Pinang victory, which caused a ruckus in the Parliament. There were shouts of “rasuah” by the opposition. Ill-advised move, I’ll say.