Budgets & Tax
- Budget 2019 Malaysia: Revisiting Budget 2018 Malaysia
Budget 2019 Malaysia: Revisiting Budget 2018 Malaysia
Almost exactly a year ago, the #Bajet2018 was tabled by the government. In light of the upcoming National 2019 Budget, we’re revisiting last year’s budget to understand what were the major announcements in the past. One big thing that will be missing is of course the GST, which has since been replaced with SST.
Related: Budget 2019: Summary Infographics
The total allocation for Malaysia’s Budget 2018 is RM280.25 billion (Budget 2017 was RM260.8 billion.)
See also: Malaysia Budget 2019 – Live Updates
No More Toll Collection from 1 Jan 2018 at:
- Toll plaza Batu 3, Shah Alam, Selangor
- Toll plaza Sg.Rasau, Selangor
- Toll plaza Bukit Kayu Hitam, Kedah
- Toll Plaza Eastern Dispersal Link Expressway (EDL), Johor
- No GST on all reading materials. This will include all types of magazines, comics, journals and periodicals, beginning 1 January 2018.
Related: [NOVEMBER 2018] Credit Cards Promotion
- RM1.5 billion allocated to provide 210,000 homes under Pthe erumahan Rakyat 1 Malaysia (PR1MA) scheme that are valued below RM250,000.
- 50% tax exemption on rental income amounting up to RM2,000 for residential properties to encourage property investments.
For PTPTN Borrowers
- Repayment incentives will be extended until December 2018.
- Increase to 20% discount on full settlement made in a single payment (from 15% last year.
- 10% discount when at least 50% payment of outstanding amount made in a single payment.
- 10% discount for monthly payments that are made through salary deductions or direct debit.
2% tax income reduction for taxable income bracket between:
- Income range RM20k – RM70k will get tax reduction from 5% reduced to 3%.
- Income range of RM35k – RM50k will get tax reduction from 10% to 8%.
- Income range of RM50k – RM70k will get tax reduction from 16% to 14%
For Civil Servants
- RM 1,500 special payment to all civil servants. This payment will be given twice, RM1,000 in early January 2018, and another RM500 by next year’s Aidil Fitri.
- Government pensioners will receive a RM750 special one-off payment.
- Pregnant civil servants (5 months above) allowed to go home 1 hour earlier.
- Armed Forces Housing blueprint will see 40k housing units built in phases.
- 10K Housing 1Malaysia Civil Servant-PDRM will be built for the police force, prices will be in line with their salary.
- RM6.8 billion allocated to benefit the current 7 million BR1M recipients who will continue to receive aid in 2018. Amount of BR1M handout remains the same as the current amount.
- Malaysians pay RM10 for haemodialysis. RM50 million allocated for haemodialysis assistance with a RM100 subsidy from the total cost of RM110 per treatment session.
- 90 days mandatory period of maternity leave proposal for private sector, an increase from the current 60 days
For Parents with Children
- The Local Authority must ensure all new office buildings will have childcare facilities, beginning at KL.
- Malaysian children born between Jan 1, 2018-2022 will be given RM200 to begin their initial savings through the Amanah Saham unit.
- RM2.4 billion allocated to UiTM, with student enrollment target of 250k by 2020
- PTPTN borrowers who wishes to continue their studies to the next level can combine their diploma and degree, or degree and master’s loan and start repayment after graduating.
- RM100 schooling aid per pupil for school students from low-income families which will benefit 3.2 million students.
- RM250 Book Voucher Assistance for students at IPT and in Form Six will continue to be given, which will benefit 1.2 million students.
For entrepreneurs & agriculture
- Convenient loan of RM120 million for 1k FoodTracker 1Msia entrepreneurs, 1Msia Mobile Food Kiosk through Bank Rakyat & BSN, government to subsidized 4% from interest rate of the loan.
- RM50 million will be allocated via TEKUN for the Indian community to provide loan schemes, to benefit 35k Indians.
- SME corp allocated RM200 million to provide Malaysian’s with training programs, grants and soft loans.
- RM6.5 billion allocation for farmers, fishermen, paddy farmers, breeders and rubber tappers.
- RM200 monthly allowance for paddy farmers (3 months) while waiting for harvesting season with an allocation of almost RM150 million.
On the Overall Economy Budget 2018
- Pulau Pangkor declared free tax zone, but excludes alcohol, tobacco and vehicles.
- The government will accelerate the construction of the MRT3 also known as Circle Line, expected to be completed by 2025, ahead of the initial plan in 2027.
- Income per capita of Malaysians was RM27,819 in 2010 and is estimated to increase to RM42,777 in 2018.
- In the first half of 2017, Malaysia’s economic growth was at 5.7% (the estimation last year was between 4-5%).
Budget 2018 theme : “Memakmur Ekon Yang Inklusif, Mengimbang Keunggulan Duniawi & Ukhrawi Demi Mensejahtera Kehidupan Rakyat, Menuju Aspirasi
- Private investment is expected to reach RM260b in 2018
Recap of Budget 2017
In the previous year, the total allocation for Budget 2017 was RM260.8 billion, and Malaysia’s economy growth for 2017 was estimated to be at 4% – 5%. Aside from that, the Transformasi Nasional 2050 (TN50), which is an initiative to plan for the future of Malaysia between the period of 2020 to 2050, was also introduced.
Prior to the tabling of the budget, Malaysians had a chance to submit their suggestions and vote for what they hoped to get from #bajet2018 at an interactive microsite. Among the popular suggestions were:
- to increase salary and allowance for civil servants
- 2 month bonus to civil servants
- remove renewal fees for driving license
- special allowance for teachers
- revise the rebates for income tax
- specialized hospitals for children
See also: Bajet 2018: Will the Rakyat Get What They Want?
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