Budget 2017 Highlights

The Edge Market

21 October 2016

BUDGET 2017 HIGHLIGHTS

Budget 2017's allocation stands at RM260.8 bil is up 3.4% from recalibrated Budget 2016
Putrajaya allocates RM214.8 bil for Operating Expenditure, with RM46 bil for Development Expenditure
Under Development Expenditure, the economic sector will receive the highest share of RM25.9b, followed by social sector with RM12.2b
RM103.9b allocated for fixed charges and grants; RM691m for purchase of assets; RM816.6m for other expenditures
Govt expects to achieve a fiscal deficit target of 3% of GDP
The security sector will be allocated RM5.3b; the general administration more than RM2.5b; contingencies will get RM2b
Malaysia, in diversifying sources of economic growth, has reduced dependency on O&G sector from 41.3% in 2009 to 14.6% in 2016
2017 revenue collection to expand at about 3% to RM219.7b
GST collection has reached nearly RM30b as of 19 October 2016
Approved FDI in 1H16 totalled RM28b, up 32% from 1H15, says Najib
Bereavement Scheme of RM1,000 compensation to the next of kin of BR1M recipients will continue
RM4.6b allocated to technical and vocational education and training institutions to enhance technical and vocational education and training education capacity
Govt to provide vacant lands at strategic locations to GLCs & PR1MA to build more than 30k houses priced between RM150k-RM300k
Private firms to get double tax deduction on expenses incurred to provide Structured Internship Programme for students under technical and vocational education and training
Over 12k PR1MA homes worth RM3.3b has been booked, with 85k units at various stages of approval
PR1MA financing to get "step-up": buyers to get loan up to 90%-100%; loan rejection rate to be reduced drastically
Lifestyle tax relief extended to include purchase of printed newspapers, smartphones & tablets, internet subscriptions & gym membership fees.
Stamp duty exemption increased to 100% on instruments of transfer & housing loan instruments, to help reduce cost of first home ownership
Stamp duty exemption limited to houses priced up to RM300k, for 1st home buyers only, between Jan 1, 2017 and Dec 31, 2018
Collection Intelligence Arrangement (CIA) to be established under @MOFmalaysia to raise efficiency of revenue collection
RM1.2b allocated to Ministry of Youth and Sports for sports development
Govt to implement various rakyat-centric, national interest projects funded by Private Finance Initiative: allocation RM10b
SOCSO Scheme to be introduced for taxi drivers with monthly income up to RM3k; launching grant: RM60m
RM1.3b allocated to raise food production at a competitive price
RM25b allocated for implementation of various healthcare programmes and projects
Govt to provide one-off grants worth RM200k for purchase of haemodialysis equipment; total allocation RM40m
RM110m to be allocated - RM70m for medical assistance - to benefit about 10,000 poor patients
Govt to provide grant of RM5k to buy new vehicles, offer individual taxi permits; total allocation RM60m
To help B40 generate additional income, govt to encourage their participation as ride-sharing schemes like Uber. M40 group's household income ranges between RM3.9k-RM8.3k.
For those who don't own a vehicle, down payment will be made using BR1M; rebate of RM4k given to buy Proton Iriz
Private sector development expected to expand 8.1% to RM230b in 2017
RM2.1b allocation for infra & socioeconomic development at: Iskandar Msia, NCER, ECER, SDC & SCORE
RM522m allocated to MIDA; focus industries are chemicals, electric & electronics, R&D
Govt-linked investment firms to allocate special fund of up to RM3b to potential firms.
Capital Market Research Institute to be set up, with initial funding RM75m from Capital Market Development Fund
Malaysia now considered an upper middle-income country — Najib
No increase in GST for 2017 - PM Najib
This govt has delivered, is still delivering and will continue to deliver - Najib
There are three main categories of rakyat in our country; T20, M40 & B40
B40 refers to the bottom 40% of households with monthly income of RM3,900 and below
Govt will never allow Malaysia to become a failed state - PM Najib
97k street lights & 3k LED lights will be installed at crossroads for 7.5k villages nationwide
616km of village roads & bridges to be built & upgraded with an allocation of RM1.2b
RM50m allocated to extend GLCs' SL1M programme to 20k grads in 2017 vs 15k grads in 2016
Govt to build 10k houses in urban areas for rental to eligible youths with permanent jobs, including young grads entering labour market
Existing tax reliefs, the purchase of reading materials, computers and sports equipment be combined as lifestyle tax relief
Only 2.1 million income tax payers out of 14.6 million of country's total workforce
For civil service: Govt extends fully paid study leave with scholarship to the support group, currently limited to management & professional group
Quarantine leave up to 5 days without record to public servants whose children are ill & are quarantined
Computer loan facility extended to purchase of smartphones for public servants; they can use this once every 3 yrs; limited to RM5k
Motorcycle loan facility limit available for public servants raised from RM5,000 to RM10,000
Civil servant’s housing loans to be raised to RM200,000 and RM750,000, from RM120,000 and RM600,000
Govt will complete 30k units of Perumahan Penjawat Awam 1Msia, to be sold between RM90k & RM300k; i.e. 20% below market price
Contract of service/contract for service officers, expiring at end-2016, to be extended at least 1 yr
Fitch had rated Malaysia with A-, similar to that of advanced and larger economies such as Republic of Korea (AA-), China (A+), Taiwan (A+), Japan (A). 86. This means, bankruptcy is never in Malaysia’s economic dictionary, PM Najib
To address issue of specialist docs exiting & promotion delays, Grade 56 introducd btwn Grade54 & JUSA C for medic & dental specialists
The 1st group of doctors, dentists & pharmacists to be appointed on contract latest by Dec 2016 due to constraint in permanent posts
About 2,600 doctors without housemanship will now serve on contract
Stamp duty on instruments of property transfer worth over RM1m to be raised to 4% from Jan 1, 2018
For households in the e-Kasih database with a monthly income below RM3,000, BR1M will be increased to RM1,200 from RM1,050 and RM1,000
For households earning between RM3,000 and RM4,000, BR1M will be increased from RM800 to RM900
For single individuals earning below RM2,000, BR1M will be increased from RM400 to RM450
BR1M is not animal feed neither bait, rather it is a sincere assistance from the government, says Najib
RM1.3b allocation for paddy farmers to subsidise price, seeds and fertilisers, including hill paddy
In next 2 yrs, fixed line broadband speed will be doubled while price will be halved
To ensure higher education is on par with global standards, RM7.4b is allocated for 20 public universities
For households in the e-Kasih database with a monthly income below RM3,000, BR1M will be increased to RM1,200 from RM1,050 and RM1,000
2017 declared Startup & SME Promotion Year
RM75m for implementation of programmes under SME Master Plan to promote SME development
2% rebate given on interest rates charged to SME borrowers under SJPP scheme
For SMEs: income tax reduction by stages based on percentage increase in income, compared with previous year of assessment
For SMEs: Tax reduction of 1 percentage point (ppt) for a rise of between 5% and 10% in chargeable income; 2 ppt for a rise of between 10% and 15% rise; 3 ppt for a rise of between 15% and 20%, and 4% for a rise of 20%
Up to RM1k tax relief introduced for breastfeeding equipment to support working women who're still breastfeeding
Home Affairs Ministry to get RM12.8b allocation, including RM8.7b for Royal Malaysia Police
RM30m for women to undergo mammogram screening, get Human Papilloma Virus vaccination to prevent cancer, for free
15% discount to be given on full settlement of PTPTN debt, 10% on half payment, 10% via salary reduction/direct debit
RM200m from Working Capital Guarantee Scheme (WCGS) Fund will be allocated for startups
Schooling Assistance Programme of RM100 each for students from families earning up to RM3k, benefiting 3.5m students
RM1.8b provided for defence asset maintenance, like aircraft, patrol vessels, communications equipment, buildings, weaponry
Govt to launch series of national discourse to chart the nation direction on new canvas, the 2050 National Transformation (TN50)
TN50 will span 30 years to form a nation state of calibre, with par excellent mindset
There will be a special assistance of RM500 to all public servants; special payment of RM250 for govt retirees
Govt will amend Bankruptcy Act 1967 from early next year, concerning those declared bankrupt especially ‘social guarantors’. Details to be announced soon.
JAKIM will raise monthly allowance of Imam from RM750 to RM850
RM85m allocation for PERMATA prog involving 50k children, including the establishmt of Top STEM Talents Excellence Centre
RM4.6b is allocated to all states under the Malaysian Road Records Information System to maintain state roads
TN50 will be kick-started by young generation of all races via national discourse to be conducted by Youth & Sports Ministry, under Najib's patronage as PM
Water Supply Fund to be set up immediately with allocation of RM500m to address country's water supply issues
Book vouchers to be replaced with RM250 student debit card to buy books, computer accessories, internet access
MCMC to provide free tablets to 430,000 teachers; allocation RM340m
To encourage youths to make long-term investments, govt to introduce Private Retirement Scheme (PRS)
To help improve rakyat’s income opportunities, especially the B40, RM275 million is allocated
RM45m to expand MySuria Prog (RM45m) to instal solar panels in over 1.6k houses
RM30m to expand Mobilepreneur Prog by GIATMARA, targeting 3k participants using motorcycles
eUsahawan and eRezeki progs under MDEC to be revitalised with RM100m
RM460m allocated to provide electricity supply in rural areas, targeting about 10k houses
69 flood mitigation plans will be continued nationwide with allocation of RM495m
Housing ministry to build 9,850 houses under People’s Housing Prog (PPR) with RM134m allocation
Govt to implement MyBeautiful New Home initiative, especially for B40 with an allocation of RM200m
MyBeautiful New Home initiative: Initially, 5,000 units will be built with prices ranging from RM40,000 to RM50,000 per unit
RM10b for subsidy comprises fuel subsidies including cooking gas; toll charges; public transport; and various incentives

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