Kuala Lumpur, Oct 25 – Following are the highlights of the 2014 Budget tabled by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, at the Dewan Rakyat today.
It was formulated based on the theme “Strengthening Economic Resilience, Accelerating Transformation and Fulfilling Promises”.
The 2014 Budget outlined five main thrusts, namely invigorating economic activity, strengthening fiscal management, inculcating excellence in human capital, intensifying urban and rural development, and ensuring the well-being of the people.
1. A total of RM264.2 billion allocated in 2014 Budget for the implementation of programmes and projects for the well-being of the rakyat and national development.
2. RM 217.7 billion is for operating expenditure while RM46.5 billion for development expenditure.
3. RM63.6 billion allocated for emoluments and RM36.6 billion for supplies and services.
4. RM29 billion allocated to the economic sector.
5. RM10.5 billion allocated to the social sector for education, training,health, welfare, housing and community development.
6. RM3.9 billion allocated to the security sector, RM1.1 billion for general administration, RM2 billion for contingencies.
7. In 2014, Federal Government revenue collection is estimated at RM224.1 billion, up RM4 billion from 2013.
8. Federal Government fiscal deficit expected to further decline from 4% of GDP in 2013 to 3.5% in 2014.
9. RM1.2 billion allocated for operating and development expenditure in 2013 and 2014 to implement Visit Malaysia Year 2014 programmes, targeting 28 million tourists.
10. 2015 announced as the Year of Festivals
11. Proposed extension of application period for Pioneer Status and Investment Tax Allowance incentives for another 3 years until Dec 31, 2016 to support investments, particularly in new 4 and 5-star hotels.
12. RM2 billion to be provided to the Special Tourism Infrastructure Fund to finance the cost of building tourism infrastructure as well as purchasing, replacing equipment related to tourism sector.
13. Second phase of High-Speed Broadband project to be implemented with RM1.8 billion investment; to benefit 2.8 million households nationwide with Internet speed increased to 10 Mbps.
14. 1,000 telecommunication transmission towers to be built over the next 3 years with RM1.5 billion investment to increase Internet coveage in rural areas.
15. New underwater cables to be laid within 3 years at a cost of RM850 million to increase Internet access in Sabah, Sarawak.
16. Government plans to increase its contribution in 1Malaysia Pension Scheme from 5% to 10%, or from a maximum of RM60 to RM120 per year; effective Jan 1, 2014 to end-2017.
17. One-off RM500 incentive proposed to contributors in Private Retirement Scheme with a minimum cumulative investment of RM1,000 within a year; to start from Jan 1, 2014 for a period of five years involving an allocation of RM210 million.
18. RM6 billion allocated to implement high value-added and commercially viable agriculture programmes.
19. RM2.4 billion allocated for subsidies and incentives, including subsidies for fertilisers, seeds, price of paddy and rice as well as incentives for higher production of paddy and fish landing.
20. RM243 million allocated for rubber, palm oil and cocoa replanting as well as forest plantation programmes.
21. RM634 million allocated under National Key Economic Area to increase productivity and promote agriculture produce with high demand.
22. Lobster rearing project to be implemented in Semporna, Sabah, creating 20,000 jobs; to benefit over 6,000 local entrepreneurs.
23. RM50 million allocated under Graduate Entrepreneurship Fund to provide soft loans of up to RM500,000 at 4% interest rate with a view to reducing graduate unemployment.
24. To encourage Minimum Wage Policy compliance, further tax deduction proposed with regard to the difference in the wages paid by employers in 2014.
25. RM100 million allocated for creation of Night Market Traders Entrepreneur Scheme; soft loans to carry 4% interest rate, with maximum loans of up to RM30,000.
26. Establishment of Integrity Management Unit in each ministry to enhance integrity; officers from Malaysia Anti-Corruption Commission to be represented in the unit.
27. Government to conduct audit on projects valued at more than RM100 million during their implementation phase.
28. To facilitate tax payers with employment income whose monthly tax deductions (MTD) have been made, it is proposed that they are not required to submit tax returns if satisfied their MTD is a final tax; proposal effective from assessment year 2014.
29. Subsidy programme to be gradually restructured; a portion of savings from restructuring to be distributed in the form of direct cash assistance with the other half to finance development projects.
30. Proposed abolition of sales tax and service tax; to be replaced by Goods and Services Tax (GST) towards addressing weaknesses in current taxation system.
31. More than 160 countries have implemented GST, clearly demonstrating GST is proven to be a transparent, effective and fair tax system.
32. Proposed GST model for Malaysia includes rate being fixed at 6%, effective April 1, 2015, lowest among Asean countries.
33. GST will not be imposed on basic food items, piped water supply, the first 200 units of electricity per month for domestic consumers, services provided by the government such as issuance of passports and licences, health services, school education.
34. Also exempted from GST are transportation services as well as sale, purchase and rental of residential properties and selected financial services.
35. Upon implementation of GST in 2015, government to provide one-off RM300 cash assistance to households who are BR1M recipients; individual income tax rates reduced by 1 to 3 percentage points for all tax payers; individual income tax structure reviewed.
36.RM54.6 billion or 21% of 2014 Budget allocated to accelerate academic achievement, competencies and skills; RM831 million allocated to build 33 new schools and upgrade existing ones.
37. RM450 million to be added to the Special Fund for Building, Upgrading and Maintenance of Schools.
38. Allocation of RM600 million in research grants for public institutions of higher learning; RM110 million for MyBrain15 programme which finances tuition fees at post-graduate level, especially for private sector executives.
39. Human Resource Development Fund to provide RM400 million for upskilling and reskilling programmes meant for employees of registered companies; can also be used to train apprentices and future workers.
40. RM100 schooling assistance to all primary and secondary school students as well as RM250 book vouchers to continue, with allocations of RM540 million and RM325 million respectively.
41. RM130 million allocated to subsidise rural air transport, especially for rural population in Sabah and Sarawak; RM52.9 million allocated to subsidise uneconomical train routes in Pahang and Kelantan, move to benefit some 600,000 commuters.
42. RM1.2 billion allocated to build and upgrade dams and water treatment plants to increase coverage of water supply to 100%, especially in urban areas.
43. RM4.1 billion to be provided for basic rural infrastructure projects,including RM980 million to upgrade 437 km of rural road networks nationwide andRM500 million for Pan-Borneo Highway project.
44.RM109 million allocation to enhance economic development and well-being of Orang Asli community; RM50 million for land surveying and customary land ownership verification.
45. Police and Armed Forces (ATM) allocated RM8.8 billion and RM13.2 billion respectively to reduce crime and enhance military preparedness.
46. RM75 million proposed to further strengthen East Coast Special Security Area (ESSCOM) operations.
47. RM48 million allocation to cater for the welfare of 20,000 armed forces veterans, including health payments, ex-gratia and education; RM202 million to build and refurbish ATM quarters.
48. RM15 million launching grant for the creation of Malaysian Green Foundation to promote use of green technology among corporate sector and general public.
49. Health sector allocated RM22.1 billion; RM150 million to appoint 6,800 more nurses; RM3.3 billion to purchase medicine and medical equipment.
50. Abolition of 34 sen sugar subsidy effective Oct 26, 2013 in a bid to encourage Malaysians to reduce sugar intake.
51. Women, Family and Community Development Ministry allocated RM2.2 billion
52. For civil servants, eligibility to qualify for public sector TASKA fee of RM180 per month now extended to households with monthly income of RM5,000 compared with RM3,000 previously.
53. SME Bank to establish Bumiputera Equity Fund (Equibumi) with an allocation of RM300 million to provide loans to credible Bumiputera companies to take over listed companies or companies with potential to be listed on Bursa Malaysia.
54. RM441 million allocated for the development and welfare of the disabled.
55. RM100 million allocation to enhance education performance and skills training for Malaysian Indian community.
56. Government and private sector to build about 223,000 new houses in 2014 to further increase access to home ownership at affordable prices; RM578 million allocated to National Housing Department to build 16,473 housing units under Program Perumahan Rakyat.
57. PR1MA to provide 80,000 housing units with an allocation of RM1 billion; SPNB to build 26,122 units of affordable houses.
58. A new category of Rumah Mesra Rakyat to be introduced with sales price between RM45,000 and RM65,000 per unit, government to subsidise between RM15,000 and RM20,000 per unit.
59. RM82 million allocated to rehabilitate 20 abandoned housing projects involving 8,197 houses.
60. Proposed establishment of National Housing Council to further strengthen the real estate market and increase opportunities for the people to own houses.
61. RM331 million allocated to continue price uniformity programme and subsidies including transport cost.
62. BR1M to households with a monthly income of below RM3,000 increased from RM500 to RM650; and for the first time, BR1M assistance of RM450 to be extended to households with monthly income of between RM3,000 and RM4,000.
63. BR1M increased from RM250 to RM300 for single individuals aged 21 and above and with a monthly income not exceeding RM2,000.
64. Pensioners to receive special financial assistance of RM250.
65. A half-month bonus for 2013 with minimum payment of RM500 announced, to be paid in early January 2014.
66. Prime minister said irresponsible people won’t be allowed to take over the government; expressed hope that 2014 Budget will take Malaysia to greater heights and competitiveness in the international arena.
– Bernama
