Budget 2020: Get your live feeds here…

Budget 2020: Get your live feeds here…

At 4pm today, Finance Minister Lim Guan Eng is scheduled to deliver Budget 2020 speech at the Dewan Rakyat.

Follow us here for snippets of the budget speech, exclusively from The Leaders Online:

Overview of Budget 2020

Budget 2020 is worth RM297.020 billion, which is 5.57% lower than the RM314.55 billion allocation in Budget 2019.

In short :

Total budget for 2020: RM297.020 billion (excluding RM2 billion contingency fund), down by 5.57%.

Operational expenditure: RM241.020 billion, down by 7.25%

Development expenditure: RM56 billion, up by 2.32%

Projected fiscal deficit for 2020: 3.2% (revised from 3.0%)

Sorry, no GST for now!

-The government has no plans to reintroduce the controversial Goods and Services Tax (GST)

Investment, business and e-economy

-The government will provide an additional allocation worth RM10 million for the International Trade and Industry Ministry to increase surveillance and ensure investment goals are realised after getting approval.

-The Malaysian Communications and Multimedia Commission will allocate RM250 million to provide broadband access via satellite technology to improve connectivity in rural Malaysia, including Sabah and Sarawak.

-The government will spend RM8 billion to improve port infrastructure, and turn Port Klang and Carey Island into regional maritime centres and logistic hubs.

-The government offers 10-years tax breaks and other incentives for qualified electrical and engineering companies operating in Malaysia.

-The government will introduce various schemes worth RM1 billion, for the next five years, to attract Fortune 500 companies and ‘global unicorns’ to come to Malaysia; to invest in high technology, manufacturing, creative and new economy sectors.

-Putrajaya will set up a special channel in InvestKL for China investors, to ensure that Chinese investments match US investments.

-The government is increasing allocation to RM20 million for e-sports.

-Private companies which practises digital social responsibility to help train their workforce will be given tax breaks. The government will allocate RM10 million to train people in e-commerce.

-The government will provide RM 10 million for Multimedia Development Corporation (MDEC) to train micro-digital entrepreneurs and tech experts to improve e-Marketplaces and other social media platforms.

-Providing a guarantee worth RM500 million for women entrepreneurs through Government Guarantee Scheme.

-To encourage the use of e-wallets, the government will give adults with an annual income of less than RM100,000 a one-off RM30 credit in their e-wallet. The money can be redeemed between Jan 1, 2020 and Feb 29, 2020.

Goodies for Felda

-Putrajaya will allocate RM810 million to improve the livelihood of Felda settlers, write off some of their debts, improve water supply, construct houses and upgrade existing infrastructure.

Banking sector

-Bank Negara Malaysia will finalise the digital banking licensing framework and open for application by first quarter of 2020.

-SME Bank will introduce two new schemes: RM200 for women entrepreneurs and RM 300 million to support small and medium enterprises.

Bumiputras and fishermen

-The special monthly allowance for fishermen will be increased to RM250 from the current RM200.

-A special allocation worth RM445 million to support the development of bumiputra entrepreneurs.

Tourism and arts

-Tax incentives for theme parks and organisers of cultural and sports activities to attract tourist arrivals.

-Companies which support arts and cultural activities will be given tax incentives.

Penang cable car project

-The government will allocate RM100 million for a new cable car project in Bukit Bendera, Penang, to replace the existing funicular train.

Minimum wage and Islamic finance

-Minimum wage will be raised from the current RM1,100 to RM1,200 at major cities in Malaysia starting 2020.

-The government will establish the Special Islamic Finance Committee to improve the Islamic financial system in Malaysia.

Agriculture and plantation

-The government will allocate RM550 million in loans to help small oil palm planters, who will be given 12 years to repay it at an interest rate of two percent.

-The government will allocate RM27 million to help the Malaysian Palm Oil Board establish new markets for palm oil abroad and mitigate the effects of the ongoing anti-palm oil campaign by the European Union.

-The allocation for paddy input will be increased to RM855 million for 2020, under the Skim Baja Padi Kerajaan Persekutuan (SBPKP) and Skim Insentif Pengeluaran Padi (SIPP).

-An allocation of RM30 million in matching grant will be provided for R&D work on improving value added service in the usage of palm oil.

-An allocation of RM10 million to establish the Research Management Agency

-The government to allocate RM43 million to prepare for the Agriculture Industry 4.0.

Sabah and Sarawak

-The special allocation for East Malaysia will be reviewed for the first time since 1969. Therefore, the allocation for Sabah will be increased to RM53.4 million and RM32 million for Sarawak.

-The government will increase the Special Allocation for Sabah to RM106.8 million, and RM64 million for Sarawak in the next five years.

Employees and workforce

-Employment Act 1955 will be reviewed to increase maternity leave from 60 days to 90 days, and better protect workers from both sexual harassment and discrimination.

-Under the #MalaysiaKerja scheme, graduates who are unemployed for 12 months and get hired will receive an allowance of RM500 a month for the next two years.

-Participating employers will receive an incentive of RM300 a month for employing locals.

-women who rejoin workforce will be receiving tax exemption for the next four years until 2023.

-TVET students will receive an additional allowance of RM100.

-RM300 per month of Bantuan Sara Hidup will be allocated to single adults above the age of 40 and special needs adults who earn less than RM2,000 a month. They will also receive free MySalam Takaful scheme. 

Education and Islam

-Budget 2020 sees a massive allocation for Education Ministry, worth RM64.1 billion.

-Monthly allowances for Kelas Al-Quran dan Fardhu Ain teachers (Kafa) will be increased by RM100 to benefit 33,200 teachers.

The government will provide a one-off payment of RM500 for imam, bilal, mosque caretakers and guru takmir.-

-An allocation of RM783 million to repair dilapidated schools across Malaysia.

-The government will increase allocation to RM30 million to establish more kindergartens and day-care centres.

Healthcare

-The government will subsidise pneumococcal vaccines for children. The vaccine currently cost about RM325 per dose at private healthcare centres and two doses are needed. 

MySalam insurance scheme is extended to cover 45 critical health conditions, including terminal illnesses and polio. This is on top of the existing 36 conditions currently covered.

The age limit for the scheme has also been extended to 65, starting next year.

Highways and tolls

-The rakyat can enjoy a discount of 18% on average in all highways owned by PLUS.

-The government will acquire four Klang Valley highways; which are Lebuh Raya Shah Alam (KESAS), Lebuh Raya Damansara-Puchong (LDP), Lebuh Raya Sprint (SPRINT) and SMART Tunnel (SMART).

-Congestion charge during peak hours and normal hours will be down by 30% compared to normal charges during non peak hours. No tolls will be imposed from midnight until dawn. It will save users RM180 million a year.

-Effective Jan 1,202, the toll rate for private vehicles using the Second Penang Bridge will be reduced from RM8.50 to RM7.

-For receivers of Bantuan Sara Hidup (BSH), the government will allocate RM30 a month in petrol subsidy for car owners and RM12 a month for motorcycle users. The money will be credited to their respective accounts.

-For other motorists, the Kad95 will enable them to enjoy a subsidy of 30sen per litre, limited to 100 litres a month for cars or 40 litres a month for motorcycles.

Wildlife and conservation

-The government will allocate RM48 million for conservation and preservation of natural forests and biodiversity. RM10 million of the sum is for private sector through matching grant.

-An allocation of RM15 million will be given to Malaysian Conservation Alliance for Tigers (MYCAT), Sepilok Orang Utan Rehabilitation Centre Sepilok and other NGOs protecting our Malayan Tigers and Orang Utan.

Taxes galore..

-The super rich (who earn RM2 million and more per annum) will be taxed by 30%, up from the current 28%. However, only 2,000 people will be affected by it.

-On Jan 1, the new digital tax will take effect. This tax covers services such as media streaming and digital advertising.

-The number of special draws for lottery operators have been reduced from 11 to eight times a year.

Civil service and the security forces

-RM330 million allocation to repair and maintain civil service quarters, RM150 million for quarters of Malaysians Armed Forces and RM250 million for Royal Malaysian Police.

-A one-off special monetary assistance for civil servants Grade 56 and below worth RM500. RM250 one-off payment will be given to pensioners, including veteran without pensions.

-One-off payment of RM500 for 70,000 holders of Pingat Jasa Malaysia. It will cost the government RM35 million.

– Fire and Rescue Department personnel will receive a special allowance worth RM200 a month.

-Families of civil servants who die during service will receive an ex-gratia payment worth RM150,000.

Home ownership

-The government will introduce the Rent-To-Own (RTO) scheme next year. The scheme will allow first-time homeowners to rent properties priced under RM500,000 for five years before they are given the option to purchase the unit at the price stated in the rental agreement.

Stamp duty will be waived.

Financial institutions will allocate RM10 billion for this scheme and the government will guarantee 30% (RM3 billion) of the funds.

-The threshold for foreigners to purchase local properties has been reduced from RM1 million to RM600,000. This will help reduce the RM8.3 billion in overhang for condominiums.

Sports

-The government will allocate RM45 million, compared to RM15 million this year, for the Football Development Programme.

-The government will spend RM179 million for the Tokyo Olympics 2020 and Hanoi SEA Games 2021 preparations.

-RM10 million will be allocated to develop women sports.

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