KUALA LUMPUR, Nov 2 – The following are the highlights of Budget 2019 tabled in Dewan Rakyat today by Finance Minister Lim Guan Eng. The budget carries the theme of “Credible Malaysia, Dynamic Economy, Prosperous Rakyat”. The budget will focus on three main thrusts with 12 key strategies to recapture Malaysia’s ‘Economic Tiger’ status. The three main thrusts are:
1. Institutional reforms
2. People’s wellbeing
3. Promotion of entrepreneurial culture
The 12 strategies are:
1. Strengthening fiscal management
2. Restructuring and rationalising government debt
3. Increase government revenue
4. Ensuring welfare and quality life
5. Increasing job opportunities and marketability
6. Improving quality of health care services and social welfare protection
7. Increasing disposable income
8. Education for a better future
9. Initiating new economic power
10. Grabbing opportunity to face global challenge
11. Redefining government’s role in business
12. Ensuring economic fairness and sustainable economic growth
And here are the Budget 2019 highlights:
Government to restructure budget via zero-based budgeting (16)
Fiscal Responsibility Act will be tabled by 2021 to avoid uncontrolled spending (17)
Procurement Act to be tabled next year to regulate procurement process, ensure transparency (18)
Government to use accrual basis of accounting to replace the cash basis of accounting (19)
Debt Management Office will be set up, responsible for reviewing and managing government debts and liabilities. (26)
Government to restructure budget via zero-based budgeting.
Fiscal Responsibility Act will be tabled by 2021 to avoid uncontrolled spending.
Government Procurement Act to be tabled next year to regulate procurement process, ensure transparency.
Government to use accrual basis of accounting to replace the cash basis of accounting.
Debt Management Office will be set up, responsible for reviewing and managing government debts and liabilities.
LRT3 project will continue with a reduced budget from RM31.6 billion to RM16.6 billion.
MRT2 project will continue with a savings of 22.4%, from an estimated cost of RM39.3 billion to RM30.5 billion).
The RM5.2 billion Klang Valley Double Tracking Project will be re-tendered through open tender to provide substantial cost saving.
Under SST, nearly 10 times more items exempted from sales tax.
Government to introduce a credit system for sales tax deduction from January 2019 to avoid double taxation and to reduce business costs.
Government to introduce special voluntary disclosure programme for taxpayers to declare unreported income.
The Inland Revenue Board (LHDN) to investigate extraordinary wealth, including possession of jewelry, watches, handbags, luxury cars or real estates.
The government hopes 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 license will be increased from RM120 million to RM150 million annually, casino duty will also be increased to 35% on gross income.
Machine dealer’s license will be raised from RM10,000 to RM50,000 annually, while tax on gaming machines also up from 20% to 30% of the gross collection.
The government expects to collect revenues of RM261.8 billion, including special Petronas dividend of RM30 billion.
Government to continue and improve cost of living aid (BSH) for B40 group, to be given in a more targeted manner, with 4.1 million households expected to continue receiving financial aid from the 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
The government will subsidize 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).
Government to allocate RM10 million to work with NGO and social enterprises, helping underprivileged communities.
A 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.
Nearly RM29 billion proposed for health care, up 7.8 % over the previous budget.
RM50 million set aside to treat patients with rare diseases, Hepatitis C and hemodialysis treatment.
RM100mil for Health Protection Scheme with a health screening pilot project for 800,000 people from B40 group ages 50 and above.
Government to introduce excise duty at 40 sen per litre on two categories of sugary drinks, starting April 1, 2019.
Government to allocate almost RM1.5 billion to build and complete affordable homes.
Bank Negara Malaysia to provide RM1 billion fund for first-time house buyers with income less than RM2,300 per month
RM400 million allocated to maintain, improve government quarters.
Government to freeze toll charges on all highways in 2019 with a 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 in the form of food supply, text books, cash aid and RM3.8 billion for scholarships, education loans.
Tax exemption to be given to companies that assist its staff to settle their PTPTN loan by the year ending 2019.
Individual tax exemption for SSPN Saving Scheme is increased from RM6,000 to RM8,000.
RM100 million earmarked to prepare Malaysian athletes for 2020 Tokyo Olympics.
Khazanah Nasional Berhad to provide RM100 million for FIMI specifically applicable to film production at the Pinewood studio in Iskandar Johor.
National Fiberisation and Connectivity Plan (NFCP) to be implemented with RM1 billion allocation.
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.
Pan Borneo Highway project in Sabah and Sarawak to continue, subject to cost rationalisation study.
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.
RM500 special payment for civil servants up to Grade 54 and RM250 for government pensioners.
Source: Iproperty.comPrev. Article