Budget 2014

Yesterday, our Prime Minister announced Malaysia's budget for 2014.

Here's the summary:

• The domestic economy is projected to grow at a stronger pace of between 5.0% to 5.5%.
• The unemployment rate is estimated at 3.1% while the inflation rate will remain low at between 2% and 3%.
• Goods exports are expected to grow 2.5% due to improving external demand while on the supply side, the construction sector is expected to  grow 9.6%.
• The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37% over six years.
•  It is possible that Malaysia will achieve developed nation status much earlier than 2020.
• RM217.7 billion is for operating expenditure while RM46.5 billion for development expenditure.
• RM63.6 billion allocated for emoluments and RM36.6 billion for supplies and services.
• RM29 billion allocated to the economic sector.
• RM10.5 billion allocated to the social sector for education, training, health, welfare, housing and community development.
• RM3.9 billion allocated to the security sector, RM1.1 billion for general administration, RM2 billion for contingencies.
• In 2014, Federal Government revenue collection is estimated at RM224.1 billion, up RM4 billion from 2013.
• Federal Government fiscal deficit expected to further decline from 4% of GDP in 2013 to 3.5% in 2014.
• RM1.2 billion allocated for operating and development expenditure in 2013 and 2014 to implement Visit Malaysia Year 2014 programmes, targeting 28 million tourists.
• 2015 announced as the Year of Festivals.
• To promote tourism, RM2 billion will be provided to the Special Tourism Infrastructure Fund under Bank Pembangunan, to finance the cost of building hotels, resorts and theme parks, and the purchase and replacement of equipment related to tourism.
• No more tax filing required for individuals who pay tax (PCB) on a monthly basis.
• Corporate tax is reduced from 25% to 24%.
• Sales Tax (6%) and Service Tax (10%) abolished, Goods and Services Tax (6%) to be implemented on April 1, 2015.
• No GST on essential items such as cooking oil, spices, salted fish, rice, flour.
• GST also exempted on electricity (partial exemption up to 200 units), piped water supply, public transportation.
• Buying and selling houses, renting, not affected by GST.
• Starting salary for highest income tax bracket increased from RM100,000 to RM400,000. Tax for this income bracket reduced from 26% to 24%.
• 300,000 people who earn RM4,000 a month now no longer have to pay income tax.
• RM600 miilion grant for institutes of higher learning to encourage the publishing of international-class research papers.
• Education: RM450 million to maintain and improve old schools - including Sekolah Kebangsaan, Sekolah Jenis Kebangsaan (Cina), Sekolah Jenis Kebangsaan (Tamil), MARA, Sekolah Agama.
• RM168 million for new schools; RM209 million for improving the quality of teaching in Malaysian schools.
• 1Malaysia Book Voucher Programme: RM250 for each student.
• Transport: Subsidies for rural train commutes.
• Transport: RM15.3 billion allocated to centralise taxi industry administration and improve services industry-wide.
• RM4.1 billion allocated for rural community development, especially in rural Sabah and Sarawak.
• RM179 million to repair low-cost homes nationwide.
• Anti-crime measures: RM8.8 billion allocated to police, RM13.2 billion allocated for armed forces.
• CCTV to be installed in 25 crime hotspots.
• RM200 million allocation for police to purchase additional equipment including firearms and forensic van.
• National defence: RM75 million allocated to Eastern Sabah Security Command.
• 20,000 army veterans get RM8 million.
• Healthcare: RM22.1 billion allocated to improve public healthcare system.
• 50 new 1Malaysia Clinics in 2014, 6,000 new nurses to be trained.
• RM3.3 billion allocated to providing the best medical supplies to public healthcare institutions.
• Sugar subsidy reduced by RM0.34 as of October 26, 2014. The new price is RM2.84 per kg.
• Allocations for the disabled: RM441million to develop amenities and provide help to the disabled.
• Property: Government to revise Real Property Gain Tax or RPGT:
  - 30% for properties held for 3 years or less.
  - 20% (4 years) 15% (5 years and beyond)
  - RPGT for non-citizens: 30% (1-5 years), 5% (5 years and above).
• Affordable housing: RM578 allocated to the National Housing Department to develop 16,473 residential units.
  - PR1MA to construct 80,000 new residential units at 20% lower than market prices.
  - subsidies for private developers to encourage construction of low and medium cost housing units.
• BR1M:
  - Third phase of cash-handout under BR1M increased by RM150, to RM650, for families earning RM3,000 and below.
  - Families with a monthly income of between RM3,000-RM4,000 will get RM450.
   -Singles aged 21 and above with a monthly income not exceeding RM2,000, will receive RM300.
• Half month bonus or minimum RM500 for all civil servants to be paid in January 2014.

What do you think about the Malaysia 2014 budget? 

Share your thoughts here!


Source: http://www.themalaysianinsider.com/malaysia/article/in-budget-2014-najib-focuses-on-infrastructure-pegs-deficit-at-3.5