2012 Budget highlights

2011/10/07


KUALA LUMPUR: Following are the highlights of the 2012 Budget tabled by Prime Minister Datuk Seri Najib Razak, who is also Finance Minister, at the Dewan Rakyat today:

* Government will introduce other transformation programmes, culminating in the National Transformation Policy, effective 2011-2020.
* RM232.8 billion allocated to implement all government development plans, focusing on the well-being of the rakyat, with RM181.6 billion for operating expenditure and RM51.2 billion for development expenditure.

* RM13.6 billion allocated to the social sector, including education, training, health, welfare, housing and community development.

* Government will implement a special stimulus package through private financing initiative, through which total projects amounting RM6 billion will be carried out.
* 2012 announced as the year of National Innovation Movement, with a RM100 million allocation to implement several strategic initiatives.

* RM50.2 billion for the education sector, with a development allocation of RM1.9 billion for the Education Ministry to be spent on all types of schools.

* RM1 billion to be provided through a special fund for the construction, improvement and maintenance of schools, particularly to cater to their immediate needs.
* Abolition of RM24.50 and RM33.50 for co-curriculum, internal test papers, Malaysian Schools Sports Council fees and insurance premium involving students in primary and secondary schools respectively, beginning the 2012 school year.

* Financial contributions from companies and individuals to upgrade school facilities to be eligible for tax deductions, to encourage more charitable activities.

* Existing National Agrobusiness Terminal (TEMAN) in Wakaf Che Yeh (Kelantan) and Gopeng (Perak) will be developed as Rural Transformation Centres pilot projects, with four more RTCs to be developed in Kedah, Johor, Sabah and Sarawak.

* Establishment of Professional Services Fund to encourage professionals such as lawyers, doctors and accountants to set up firms in small towns, with BSN providing RM100 million for soft loans with an interest of 4 per cent.

* RM110 million for the implementation of the Rural Mega Leap Programme covering 6,500 hectares in 11 Agropolitan Projects nationwide for the cultivation of commodity and cash crops as well as cage fish culture.

* RM140 million to implement RISDA's new planting and rubber re-planting programmes benefiting 20,000 smallholders.

* RM5 billion proposed to strengthen the development of rural basic infrastructure in a more comprehensive manner.

* RM500 million to continue implementing projects to upgrade basic infrastructure under "Projek Penyelenggaraan Infrastruktur Awam" and "Projek Infrastruktur Asas", providing opportunities for 29,000 Class F contractors registered with the Contractor Service Sector.

* RM50 million to expand rainwater harvesting programme to Sabah.

* RM400 million to upgrade water supply infrastructure in selected Felda areas, besides RM50 million to connect the reticulation system in estates to the main pipes.

* RM150 million to be provided to the Public Transport Development Fund in the SME Bank to enhance bus services for the rural community.

* RM90 million for the provision of basic necessities which includes expanding the clean water supply project as well as income generating programmes for the Orang Asli community.

* Introduction of the New Civil Service Remuneration Scheme (SBPA) to replace the current scheme.

* Improving the salary of civil servants through a single-tier structure with additional increments to enable civil servants to continue receiving annual increments over a longer period.

* Annual increment of civil servants to be increased between RM80 and RM320 according to their grades, beginning 2012. Those who opt for the SBPA will receive an annual increment of between 7 per cent and 13 per cent.

* With the implementation of SBPA, more than 600,000 government pensioners will benefit from a pension adjustment involving an allocation of RM600 million.

* Effective 2013, the government will implement an annual pension increment of 2 per cent without having to wait for any review of the remuneration system or salary adjustments.

* Extension of compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution.

* Additional bonus of half-month salary with a minimum payment of RM500 for civil servants and an assistance of RM500 for government pensioners, to be paid together with December 2011 salary.

* RM120 million to offer 5,000 Masters and 500 doctoral scholarships for eligible civil servants, including teachers.

* The government will offer 20,000 places for diploma teachers to pursue undergraduate studies.

* A special one-off payment of RM3,000 to 4,300 individuals who have completed their contracts with the Department of Special Affairs (JASA) and Social Development Department (KEMAS).

* RM442 million for the development expenditure of the Royal Malaysia Police, including for police housing quarters, purchase of communication and technical equipment as well as upgrading of headquarters, stations and training centres.

* RM500 million to upgrade and maintain army camps and quarters nationwide under the Army Care programme.

* RM50 million for the introduction of a special programme to enable army personnel who retired with less than 21 years of service and are not eligible for pension, to venture into businesses and obtain jobs in the public and private sectors.

* A one-off payment of RM3,000 to each ex-member as well as widows and widowers of special constable and auxiliary police who served in protecting the country during the emergency era.

* Agriculture sector development allocated RM1.1 billion.

* Expansion of the scope of the Commercial Agriculture Fund to include innovative agriculture projects with an allocation of RM300 million.

* The government to continue providing subsidy to households with electricity bill of RM20 per month or less, benefiting 1 million households.

* Over RM1 billion for the 1Malaysia Rakyat's Welfare Programme (KAR1SMA) to assist, among others, poor senior citizens, poor children, disabled people. 500,000 people to benefit from KAR1SMA.

* Opening of 85 more Kedai Rakyat 1Malaysia with an allocation of RM40 million.

* Expansion of the My First Home Scheme with a proposal to increase the limit of house prices from a maximum of RM220,000 to RM400,000. Improved scheme will be available to housebuyers through joint loans of husband and wife beginning January 2012.

* RM443 million to build 8,000 units for sale and 7,000 units for rental under the Program Perumahan Rakyat (PPR).

* RM63 million to rehabilitate 1,270 abandoned houses. Another RM40 million to restore and maintain public and private low-cost housing.

* Establishment of the Special Housing Fund for Fishermen with an allocation of RM300 million.

* Health Ministry allocated RM15 billion for operating expenditure and RM1.8 billion for developing expenditure.

* Kuala Lumpur Hospital to be upgraded to be the country's premier hospital with an allocation of RM300 million, of which RM50 million to be spent for the construction of a new outpatient block.

* Budget taxi owners to be given 100 per cent excise duty and sales tax exemptions for the purchase of new locally-made taxis.

* Abolition of road tax on all individually owned budget taxis.

* Providing assistance of RM3,000 for the disposal of old taxis exceeding 7 years but less than 10 years, and RM1,000 for vehicles of 10 years and above.

* RM320 million to implement various activities involving young people.

* An additional 150 futsal courts to be built with an allocation of RM15 million to achieve the "One Court for One Mukim" target, as well as another RM50 million to build football fields with artificial turfs, equipped with flood lights, at 30 selected locations nationwide.

* From Jan 1, 2012, all senior citizens aged 60 and above to be exempted from paying outpatient registration fee at all government hospitals, health clinics including 1Malaysia clinics as well as government dental clinics. They will also be entitled to a 50 per cent discount on LRT and Monorail
fares.

* One-off cash assistance of RM500 to households with a monthly income of RM3,000 and below to reflect the government's commitment to reducing the impact of the increasing cost of living on the low-income group. RM1.8 billion allocated for this purpose.

* Schooling assistance of RM100 for all primary and secondary students from Year 1 to Form 5 nationwide, as well book voucher worth RM200 to all Malaysian students in public and private local institutions of higher learning, matriculation and Form 6 students.

* Helping intending haj pilgrims to register early for the haj by ring-fencing RM1,300 from Account 2 of EPF contributors for registration purposes.

-- BERNAMA


Read more: 2012 Budget highlights http://www.nst.com.my/nst/articles/2012Budgethighlights/Article/#ixzz1a6d8zfZI

Read more...

Budget 2011 Highlight

Source:http://ck5354.blogspot.com/2010/10/budget-2011-highlight.html
Below are the salient points as tweeted by the PM's office:
* 1Malaysia Development Fund Bhd (1MDB) will provide RM20 million to the 1Malaysia Youth Fund. This fund will be utilised to instill the 1Malaysia spirit.
* To assist children, particularly from low-income families, excel academically, the 1MDB will provide multi-vitamins for primary school pupils.
* RM1.9 billion allocated to environmental preservation, including implementing the River of Life Programme and KL greening.
* RM70 million allocated for programs with select NGOs to help the government strengthen the family institution and address social ills e.g. baby dumping.
* RM350 million allocated to implement various programmes to combat crime, including burglary, motorcycle and car thefts.
* The government will provide an additional 25 1Malaysia clinics. Since 2009, 51 1Malaysia clinics are in operation.
* RM15.2 billion allocated to build new hospitals, increase the number of doctors and nurses as well as to obtain supplies of medicines and equipment.
* Toll rates in four highways owned by Plus Expressway Bhd will not be raised for the next five years, effective immediately.
* RM100 million allocated to implement various programmes, including resolving Orang Asli land rights and border settlement issues.
* The monthly allowance for KAFA teachers will be increased to RM800, an increase from RM500, starting January 2011.
* Effective January 2011, the monthly allowance of imam will be increased from RM450 to RM750.
*Allowances for JKKK, JKKP, JKKK Orang Asli chairmen and Tok Batin increased to RM800.
* Government to establish a 1Malaysia Smart Consumer portal to help the rakyat keep abreast with price movements of retail goods.
* RM974 million allocated as price subsidy for paddy, fertilisers and paddy seeds. RM230 million for production incentives and increasing paddy yield.
* Build and upgrade rural roads in Sabah and Sarawak with an allocation of RM2.1 billion and RM696 million in Peninsular Malaysia.
* RM2.1 billion allocated to build and upgrade rural roads in Sabah and Sarawak.
* RM6.9 billion allocated to implement basic infrastructure such as water and electricity supply as well as rural roads.
* First-time house buyers will be given stamp duty exemption of 50% on instruments of transfer on a house price not exceeding RM350,000.
* Government will extend tax relief of up to RM5,000 to help parents with expenses such as daycare, caretakers and other daily needs.
* Government will launch assistance programme to benefit 80,000 disabled individuals with an allocation of RM218 million
* In 2011, the government will allocate RM1.2 billion to the Ministry of Women, Family and Community Development.
* To develop football, the government will establish a Football Academy in Pahang with RM20 million to produce quality football players.
* For sports development and management, a sum of RM365 million is allocated to the Ministry of Youth and Sports.
* Government will allow flexibility to self-determine fully-paid maternity leave, not exceeding 90 days from the current 60 days.
* Government will provide 40 1Malaysia Taska (nurseries) to assist women to obtain quality childcare and early education for their children.
* RM30 million allocated to introduce the Single Mother Skill Incubator Programme and the Prime Entrepreneur and Women Activist Award.
* Government will enforce basic minimum wages for security guards, to between RM500 and RM700 a month depending on location.
* RM200 million from the Human Resource Development Fund to be used by companies to fund specific training programmes for their employees.
* RM200 million allocated to conduct part-time training in the evenings and weekends in selected training centres nationwide.
* 1Malaysia Training Programme will commence in January 2011 with an allocation of RM500 million.
* RM474 million provided to enhance productivity and skills of non-graduates.
* Government will also allocate RM50 million to Multimedia Development Corporation to train graduates in ICT.
* RM60 million allocated to further intensify the Industrial Skill Enhancement Programme in State Skills Development Training Centres.
* RM20 million allocated to increase PhD qualified academic staff to 75% in research universities and to 60% in other higher learning institutions.
* RM213 million allocated to enhance proficiency in Bahasa Malaysia, strengthen the English language.

* RM576 million allocated in the form of scholarships for those wishing to further their studies.

* RM250 million allocated for development expenditure to schools: religious, Chinese-type, Tamil national, missionary and government-assisted.

* The government will also strengthen the curriculum and appoint 800 pre-school graduate teachers.

* Government will increase pre-school enrolment rate to a targeted 72% by end-2011 through an additional 1,700.

* RM213 million is allocated to reward high-performance schools.

* RM6.4 billion is allocated for development expenditure to build and upgrade schools, hostels, facilities and equipment.

* Government will establish a Talent Corporation under the Prime Minister’s Office in early 2011.

* RM29.3 billion allocated for Ministry of Education, RM10.2 billionn for Ministry of Higher Education and RM627 million for Ministry of Human Resources.

* The government proposes that the rate of service tax be increased from 5% to 6%.
* RM200 million is allocated to purchase creative products such as high quality locally-produced films, dramas and documentaries.

* For Sarawak Corridor of Renewable Energy, RM93 million is allocated for facilities.

* RM178 million is allocated for the East Coast Economic Region projects.

* RM133 million is allocated for the Northern Corridor Economic Region.

* For Iskandar Malaysia, a sum of RM339 million is allocated.

* Corridor and regional development will be accelerated. The government has allocated RM850 million for infrastructure support.

* The Government proposes that sales tax be exempted on all types of mobile phones.

* Import duty and sales tax exemption on broadband equipment are also extended for two years until 2012.

* Multimedia Development Corridor programme allocated RM119 million. Focus is on creating an innovative digital economy.

* RM127 million to be allocated to support domestic oleo derivatives companies and RM23.3 million to expand downstream palm oil industries.

* Measures include encouraging replanting activity to replace aged trees with high quality new clones through RM297 million.

* In efforts to propel the palm oil and related products industry, several measures will be implemented.

* The government proposes that import duty on approximately 300 goods preferred by tourists and locals, at 5% to 30% be abolished.

* To support the tourism industry, the government will allocate RM100 million.

* RM3 billion eco-nature resort Nexus Karambunai, Sabah, to commence 2011.

* Infrastructure facilities to be allocated RM85 million to facilitate construction of hotels and resorts in remote areas.

* The government allocates RM3.8bn in 2011 to increase productivity and generate higher returns in the agriculture sector.

* The government will implement the Programme on Blending of Biofuels with Petroleum Diesel (B5 Programme) in June 2011.

* Malaysia is committed to reducing carbon emission intensity to preserve the environment.

* Tax exemption on income from trading of Certified Emission Reductions certificate to extend until year of assessment 2012.

* Hundred percent import duty and excise exemption for hybrid vehicles. To further encourage ownership of hybrid cars, import duty and excise duty exemption will be extended until Dec 31, 2011.

* The government is committed to develop green technology to ensure sustainable development.

* The government will allocate RM146 million to support the oil, gas and energy industry.

* A sum of RM857 million is allocated for local E&E companies to compete at the international level.

* Existing income tax relief of up to RM6,000 for employees contributions to EPF will extend to Private Pension Fund contributions.

* To revitalise capital market activities, the government will launch a Private Pension Fund in 2011.

* The Malaysian Technology Development Corporation will be provided a start-up fund amounting to RM100 million to provide soft loans.

*The government will provide Entrepreneurship Enhancement Training Programme to train 500 technopreneurs and attract more angel investors.

* Efforts will be taken to strengthen Malaysia's position as a premier Islamic capital market.

* The government will implement bold measures to revitalise the domestic capital market.

* A new landmark, Warisan Merdeka, expected to be completed in 2020, will include a 100-storey tower, the tallest in Malaysia.

* Another major project is the development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres.

* Greater KL MRT to be implemented from 2011. When complete, public transport utilisation rate expected to rise to at least 40%.

* Another PPP project identified is the Academic Medical Centre. This project involves private investment of RM2 billion.

* Development of International Islamic University Malaysia Teaching hospital in Kuantan; Women and Children's hospital.

* Construction of a 300-megawatt Combined-Cycle Gas Power Plant in Kimanis, Sabah.

* Construction of highways such as the Ampang-Cheras-Pandan Elevated Highway.

Read more...