Malaysia Budget 2012

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Malaysia Budget 2012

Malaysia Prime Minister Datuk Seri Najib Tun Razak will deliver the nation’s budget spending plan for 2012 on 7 October 2011 4pm.

The following are the areas where the Malaysian government intends to spend on for national growth and development:

  1. Budget Allocation
    1. RM232.8 billion in total to be used for spending by the Government, where it is split into RM181.6 billion for management and RM51.2 billion for development.
    2. RM29.8 billion will be invested into infrastructure, industrial and rural development.
    3. RM13.6 billion has been planned for the education and training, welfare, housing and community development.
    4. RM978 million will be spent to encourage growth in five regional sectors.
  2. Infrastructure
    1. RM98.4 billion will be allocated evenly between 2012 & 2013.
    2. Government will embark on major projects such as the East Coast Highway from Jabor to Terrenganu and road upgrades from Kota Marudu to Ranau.
  3. Finance
    1. Non-ringgit sukuk issuance and transactions will continue to be exempted from income tax for another 3 years.
    2. A RM2 billion shariah-compliant SME Financing Fund will be created and managed by selected Islamic banks.
    3. Maximum of RM1 million loans will be available for entrepreneurs via a RM100mil SME Revitalisation Fund.
  4. Property
    1. Properties purchased and then sold after 5 years will not be subjected to real property gains tax.
    2. Residential property price limit for first-time buyers earning less than RM3,000 per month is raised from RM220,000 to RM400,000.
    3. PR1MA will be the sole agency to develop affordable quality housing for the middle-income group.
  5. Education
    1. Primary and secondary school education fees will be abolished.
    2. RM200 book voucher to be handed out to Malaysian students in all private and public institutions of higher learning.
    3. Government to spend RM50.2 billion in the education sector to develop creative and innovative people.
    4. RM1 billion will be used for construction, improvement and maintenance of schools.
    5. Private schools registered with the Education Ministry will be given incentives, such as the Investment Tax Allowance.
    6. To reward innovative student inventions, RM100 million will be provided for the C1PTA 1Malaysia Award.
  6. Businesses and Industries
    1. Of the RM20 billion PPP Facilitation Fund, RM18 billion will be used for high impact projects, and the remaining RM2 billion for bumiputera entrepreneurs.
    2. As part of the National Agro-Food Policy 2011-2020, RM1.1 billion will be spent on the development of the agriculture sector.
    3. A Commercialisation Innovation Fund worth RM500 million will be used to help SMEs commercialize research products.
  7. Transport
    1. Hybrid and electric cars will continue to enjoy import duty and excise exemption until 2013.
    2. Government will identify areas around MRT, LRT and other public transport systems that will be have housing projects developed by PR1MA.
  8. Civil Service
    1. Government pensioners will receive an additional 0.5 month salary bonus subject to a minimum of RM500 and assistance sum of RM500, both of which will commence in December 2011.
    2. Civil servants’ compulsory retirement age will be raised from 58 years old to 60.
  9. Tax Exemptions
    1. Individuals in private sector earning RM5000 and below will have their employers’ EPF contribution increased from 12% to 13%.
    2. Contributions made to educational institutions and all places of worship will tax exempt.
    3. Families with monthly household income of RM3,000 or less will be given RM500 once.
  10. Rural Development
    1. Government will allocated RM5 billion to develop rural infrastructure, such as the RM1.8 billion Rural Road Programme & Village-Link Road Project.
    2. The Orang Asli will be provided RM90 million of basic necessities, including the clean water supply project. Orang Asli affected by the landslides at Sungai Ruil will be given RM20 million to relocate their homes.
    3. RM500 million will be spent to supply clean water to the rural community in Sabah.
    4. Felda GVH will be listed on Bursa Malaysia by mid-2012 for the company to become a global conglomerate. Felda settlers will benefit from the financial liberation.
  11. Healthcare
    1. Government will spend RM15 billion for operating expenses and RM1.8 bllion on development expenses.
    2. Free Human Papilloma Virus immunisation will be launched nationwide to fight cervical cancer.
    3. Government will upgrade and build more hospitals, upgrade 81 rural health clinics, and build 50 more 1Malaysia clinics.
  12. Tourism
    1. The Langkawi Five Year Tourism Development Master Plan worth RM420 million will be launched.

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