{"id":7980,"date":"2011-10-07T21:27:03","date_gmt":"2011-10-07T13:27:03","guid":{"rendered":"http:\/\/poobalan.com\/blog\/?p=7980"},"modified":"2011-10-07T21:27:03","modified_gmt":"2011-10-07T13:27:03","slug":"budget-2012","status":"publish","type":"post","link":"https:\/\/poobalan.com\/blog\/others\/2011\/10\/07\/budget-2012\/","title":{"rendered":"Budget 2012"},"content":{"rendered":"<p style=\"text-align: justify;\">You might want to have a peek at <strong><a href=\"http:\/\/poobalan.com\/blog\/borninmalaysia\/2010\/10\/15\/budget-2011\/\" target=\"_blank\">Budget 2011<\/a><\/strong> last year to get an idea of this year&#8217;s budget. This year around, PM Najib spoke for an extra 19 minutes. The budget speech can be found <strong><a href=\"http:\/\/www.nst.com.my\/nst\/articles\/The2012BudgetSpeech\/Article\/\" target=\"_blank\">here<\/a><\/strong>.<\/p>\n<p style=\"text-align: justify;\">The budget costs\u00a0RM232.8 billion, up 9.4%, with the operating expenditure at\u00a0RM181.6 billion or 78%, (up 11.5%) and development expenditure at\u00a0RM51.2 billion or 22% (up 4.1%). \u00a0RM20.5 billion would be for servicing debt.<\/p>\n<p style=\"text-align: justify;\">You can compare with Pakatan Rakyat&#8217;s shadow budget <strong><a href=\"http:\/\/poobalan.com\/blog\/others\/2011\/10\/04\/pakatan-rakyats-shadow-budget\/\" target=\"_blank\">here<\/a><\/strong>.<\/p>\n<p style=\"text-align: justify;\">Last year, Malaysia&#8217;s\u00a0FDI\u00a0growth was the strongest in Asia and in the first six months of this year have reached RM21.2 billion. Economic growth for 2012 is expected to be\u00a0between 5 and 6 percent, despite a global economic slowdown. In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment.\u00a0GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption.\u00a0In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%.<\/p>\n<p style=\"text-align: justify;\">RM29.8 billion allocated for\u00a0investment\u00a0in infrastructure, industrial and rural development.\u00a0RM13.6bil allocated for the\u00a0social sector, including education and training, welfare, housing and community development.<\/p>\n<p style=\"text-align: justify;\">Some of the main points:<\/p>\n<p style=\"text-align: justify;\">Economic\/Industry<\/p>\n<ul style=\"text-align: justify;\">\n<li>Government to further\u00a0liberalise\u00a017 services sub-sectors, including healthcare and logistics, and in places enabling 100% foreign equity.\u00a0This will allow 100 per cent foreign ownership of \u00a0the 17 service subsectors.<\/li>\n<li>RM18 billion of the RM20 billion PPP Facilitation Fund will be used for high-impact projects, with RM2 billion for\u00a0bumiputera entrepreneurs.<\/li>\n<li>KL International Financial District &#8211;\u00a0\u00a0income tax break 100% for 10 years, duty stamp exemption;\u00a0development allowances and capital allowances;\u00a0income tax break 50% for property developers in KLIFD<\/li>\n<li>RM978 million allocated to accelerate the\u00a0development in five regional corridors:\u00a0Coastal Highway JB-Nusa Jaya;\u00a0Taiping Heritage tourism project;\u00a0Besut agropolitan project;\u00a0Lahad Datu palm oil cluster project;\u00a0Water supply in Samalaju<\/li>\n<li>Felda to be listed in Bursa, along with &#8220;windfall&#8221; for settlers.<\/li>\n<li>To extend tax exemption on issuance and trading on foreign currency sukuk by three years<\/li>\n<li>To cut tax for three years on expenses incurred in issuance of sukuk wakala starting 2012.<\/li>\n<li>To implement RM6 billion private sector-financed special stimulus package for infrastructure works.<\/li>\n<li>To implement RM98.4 billion rolling plan until 2013 for high-impact\u00a0development projects<\/li>\n<li>To grant tax benefits to investors who use Malaysian Treasury Management Centre to accelerate financial markets development. These include income tax exemption of 70 per cent for five years, withholding tax exemption on interest payments on borrowing and stamp duty exemption on loan and service agreements.<\/li>\n<li>subsidies will be maintained at same amount (RM33.2 billion).<\/li>\n<li>franchise fees borne by local franchisees will be allowed tax deduction in efforts to develop the local franchise industry and Malaysian brands.<\/li>\n<li>Pulau Langkawi will be redeveloped with the Langkawi Five Year Tourism Development Master Plan, to be launched with an allocation of RM420 million to be used to restructure the Langkawi Development Authority, set up a park rangers unit, upgrade museums, beaches and small businesses as well as provide a more efficient transportation system.<\/li>\n<li>Hotel operators in Peninsular Malaysia investing in new four and five-star hotels will be given pioneer status, with 70 per cent income tax exemption or 60 per cent investment tax allowance for five years.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Education<\/p>\n<ul style=\"text-align: justify;\">\n<li>RM1 billion allocation through a special fund for the construction, improvement and maintenance of schools in need of upgrades. RM500 million would be allocated to national schools while Chinese and Tamil vernacular schools, mubaligh schools, government religious schools and Mara junior science colleges will receive RM100 million each. (as usual, too little for vernacular schools).<\/li>\n<li>development allocation amounting to RM1.9 billion would be spent on all types of school consisting of national schools, national-type Chinese and Tamil schools, mission schools and government-assisted religious schools<\/li>\n<li>Abolishment of school fees for primary and secondary education.\u00a0Currently, students in primary and secondary schools are still required to pay RM24.50 and RM33.50, respectively, for co-curriculum, internal test papers, Malaysian Schools Sports Council fees and insurance premium. These payments will be abolished from 2012<\/li>\n<li>One-off RM100 for each school pupil aged six to 16<\/li>\n<li>One-off RM200 cash voucher for books \u00a0for all school pupils and higher learning institution students<\/li>\n<li>Private schools\u00a0to get 70% income tax break, 100% tax allowance for up to five years, double deduction for overseas promotional expenses to attract more foreign students and import duty and sales tax exemptions on all educational equipment.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Civil Service<\/p>\n<ul style=\"text-align: justify;\">\n<li>Civil service salary hikes of between seven and 13 per cent (for those who accept the new scheme, SBPA).<\/li>\n<li>Increase in the rate of automatic annual increments in civil service salaries of between RM80 and RM320 (not salary revision as many report\/understand).<\/li>\n<li>retirement age raised from 58 to 60.<\/li>\n<li>teachers to be given promotion on time-base promotion.<\/li>\n<li>Tuition fee assistance for civil servants who want to\u00a0study part-time\u00a0&#8211; for 5,000 places for masters and 500 places for doctorate degrees. Total allocation &#8211; RM120 million<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Police\/Army<\/p>\n<ul style=\"text-align: justify;\">\n<li>One-off cash payment of RM3,000 for each family of ex-military and police personnel who served the country during a decades-long communist insurgency (62,000 families)<\/li>\n<li><span>RM200 million for upgrade to modern policing and RM442 million to upgrade housing quarters, stations and training.<\/span><\/li>\n<li><span>RM500 million under the Army Care programme for upgrade and maintain army camps and quarters.<\/span><\/li>\n<li>RM50 million for ex-servicemen retraining.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u00a0Pensioners\/Retirees<\/p>\n<ul style=\"text-align: justify;\">\n<li>Increase of 2% annually for pensioners starting from 2013.<\/li>\n<li>bonus RM500<\/li>\n<li>50% discount on LRT and monorail<\/li>\n<li>no outpatient fee for government hospitals\/clinic including dental clinics (doesn&#8217;t make much difference because its the medicine that costs a lot)<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u00a0Transportation<\/p>\n<ul style=\"text-align: justify;\">\n<li>full exemption of import tax and excise duty for hybrid and electric cars to be extended until end of 2013.<\/li>\n<li>100% excise duty and sales tax exemption for\u00a0locally-made taxis.<\/li>\n<li>No excise duty or sales tax for\u00a0transfer ownership.<\/li>\n<li>No road tax\u00a0for individually-owned budget taxis.<\/li>\n<li>2% subsidy on loan for new locally-made taxi.<\/li>\n<li>RM3,000\u00a0assistance for disposal of old taxies\u00a0exceeding seven years but less than 10 years. If 10 years old and above, RM1,000 is given. (wonder what&#8217;s the focus on taxis is all about. I thought we have too many taxi licenses?)<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u00a0Property<\/p>\n<ul style=\"text-align: justify;\">\n<li>Real Property Gains Tax increased from 5% t0 10% if property sold within 2 years, 5% if sold between 2 and 5 years, and no tax if sold after 5 years.<\/li>\n<li>Ceiling for house prices under a government deposit guarantee scheme for first-time house buyers to be raised to RM400,000 from RM200,000 (My First House Scheme)<\/li>\n<li>RM443 million fund to build 15,000 units of housing for lower- to middle-income earners<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Employment<\/p>\n<ul style=\"text-align: justify;\">\n<li>1% increase in employer&#8217;s EPF contribution (12% increase to 13%). (Most likely to cause unhappiness among employers).<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Household<\/p>\n<ul style=\"text-align: justify;\">\n<li>One-off cash assistance of RM500 to all households with a monthly income of RM3,000 and below, costing RM1.8 billion, to benefit 3.4 million households (54% of households). Head family must register with LHDN.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Orang Asli<\/p>\n<ul style=\"text-align: justify;\">\n<li>RM90 million for basic needs, including treated water and income generation, RM20 million for the community affected by Cameron Highlands landslide.<\/li>\n<\/ul>\n<div style=\"text-align: justify;\">Rural Development<\/div>\n<div style=\"text-align: justify;\">\n<ul>\n<li>RM1.1 billlion for\u00a0rural electricity supply, especially Sabah and Sarawak.<\/li>\n<li>RM5 billion will be given to\u00a0develop rural infrastructure, including RM1.8 billion to the Rural Road Programme and Village-Link Road Project.<\/li>\n<li>RM2.1 billion allocated to expand clean water to rural 220,000 homes.<\/li>\n<li>The government will expand the programme to supply\u00a0clean water\u00a0to the rural community in Sabah by RM50 million.<\/li>\n<li>In\u00a0Felda settlements, RM400 million upgrade of water supply system in Pahang, Kedah, Kelantan and Terengganu.<\/li>\n<li>RM150 million for\u00a0rural public transportation, via SME bank for bus companies in low interest loans of 4% interest<\/li>\n<\/ul>\n<\/div>\n<div style=\"text-align: justify;\">Poverty\/Low-income issue\/Welfare<\/div>\n<ul style=\"text-align: justify;\">\n<li>Build 85 government-subsidised discount grocery stores nationwide (Kedai 1Malaysia)<\/li>\n<li>RM20 subsidy for electricity bill to be continued (only if your bill is RM20 or less).<\/li>\n<li>RM1.2 billion for welfare programme: for\u00a0senior citizens\u00a0RM300 per month, poor children RM100-450 a month, disable RM150-300 per month.<\/li>\n<li>To open 30\u00a0Agro Bazaar Rakyat\u00a0for agriculture products.<\/li>\n<li>Extend\u00a0Menu Rakyat 1Malaysia\u00a0to 3,000 operators, where breakfast provided at RM2, lunch at RM4.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">SME<\/p>\n<ul style=\"text-align: justify;\">\n<li>To establish RM2.6 billion worth of funds for small and medium enterprises (SMEs).<\/li>\n<li>RM100 million SME Revitalisation Fund, for loans of up to RM1 million made available for entrepreneurs to be made available from January 2012<\/li>\n<\/ul>\n<div style=\"text-align: justify;\">Social Justice<\/div>\n<div style=\"text-align: justify;\">\n<ul>\n<li>contributions to\u00a0missionary schools and houses of worship will become tax exempt (hopefully its not an excuse to reduce allocation. As it is, there&#8217;s no mention of any allocation in the budget for houses of worship).<\/li>\n<\/ul>\n<div>Health<\/div>\n<div>\n<ul>\n<li>RM15 billion operation expenditure and RM1.8 billion for development expenditure.\u00a0Upgrade\u00a0of 81 rural clinics and 50 new 1Malaysia clinics.<\/li>\n<li>Hospital Kuala Lumpur, the oldest in Malaysia, will be upgraded to be the country\u2019s premier hospital. RM50 million to construct outpatient block for Hospital Kuala Lumpur. This will come from the RM300 million allocation to upgrade the hospital with new equipment<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p style=\"text-align: justify;\">Sports<\/p>\n<ul>\n<li>Aim to build 150\u00a0futsal courts\u00a0and 30\u00a0football fields\u00a0with artificial turfs. RM50 million allocated for football fields, RM15 million for futsal courts (We get rid of open areas and then scramble to build courts\/fields again).<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">This time around, the impact for those in the middle income (household &gt; RM5000) and those who are single can&#8217;t be found. There&#8217;s no mention of income tax reduction, nor any sin tax. There are plenty of benefits, but my worry is that its value is quite small until can&#8217;t make any immediate crucial impact for citizens. Perhaps the housing schemes and education benefits would be the ones which are impactful enough. Good thing that the subsidies are maintained for the coming year.<\/p>\n<p style=\"text-align: justify;\">The budget targets the relevant groups: police\/military, Felda, teachers, pensioners, retirees, rural areas, East Malaysia, civil servants.<\/p>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">sources:<\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/thestar.com.my\/news\/story.asp?file=\/2011\/10\/7\/nation\/20111007162147&amp;sec=nation\">http:\/\/thestar.com.my\/news\/story.asp?file=\/2011\/10\/7\/nation\/20111007162147&amp;sec=nation<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.freemalaysiatoday.com\/2011\/10\/07\/shot-in-the-arm-for-domestic-economy\/\">http:\/\/www.freemalaysiatoday.com\/2011\/10\/07\/shot-in-the-arm-for-domestic-economy\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.malaysiakini.com\/news\/178023\">http:\/\/www.malaysiakini.com\/news\/178023<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.malaysiakini.com\/news\/178022\">http:\/\/www.malaysiakini.com\/news\/178022<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.malaysiakini.com\/news\/178016\">http:\/\/www.malaysiakini.com\/news\/178016<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.malaysiakini.com\/news\/178029\">http:\/\/www.malaysiakini.com\/news\/178029<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.malaysiakini.com\/news\/177993\">http:\/\/www.malaysiakini.com\/news\/177993<\/a><\/p>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/school-fees-scrapped-in-budget-2012\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/school-fees-scrapped-in-budget-2012\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/snapshot-of-budget-measures\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/snapshot-of-budget-measures\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/cash-handouts-for-lower-income-households-students\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/cash-handouts-for-lower-income-households-students\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/putrajaya-moots-1pc-rise-in-employers-epf-contribution\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/putrajaya-moots-1pc-rise-in-employers-epf-contribution\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/real-property-gains-tax-up-to-curb-speculation\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/real-property-gains-tax-up-to-curb-speculation\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.themalaysianinsider.com\/malaysia\/article\/with-eye-on-polls-government-pledges-more-cash-all-around\/\">http:\/\/www.themalaysianinsider.com\/malaysia\/article\/with-eye-on-polls-government-pledges-more-cash-all-around\/<\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.mole.my\/content\/wide-ranging-perks-budget-2012\">http:\/\/www.mole.my\/content\/wide-ranging-perks-budget-2012<\/a><\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>You might want to have a peek at Budget 2011 last year to get an idea of this year&#8217;s budget. This year around, PM Najib spoke for an extra 19 minutes. The budget speech can be found here. The budget costs\u00a0RM232.8 billion, up 9.4%, with the operating expenditure at\u00a0RM181.6 billion or 78%, (up 11.5%) and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[115,19,217,84,276,154],"class_list":["post-7980","post","type-post","status-publish","format-standard","hentry","category-others","tag-economy","tag-education","tag-employment","tag-funds","tag-housing","tag-poverty"],"_links":{"self":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/7980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/comments?post=7980"}],"version-history":[{"count":8,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/7980\/revisions"}],"predecessor-version":[{"id":7988,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/7980\/revisions\/7988"}],"wp:attachment":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/media?parent=7980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/categories?post=7980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/tags?post=7980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}