What’s in the RM372.3bil Budget 2023

 

PETALING JAYA: Finance Minister Tengku Zafrul Aziz has tabled Budget 2023, announcing an allocation of RM372.3 billion.

This represents a RM40.2 billion increase compared to the RM332.1 billion allocated for 2022.

Around RM272.3 billion has been allocated for operational expenditure and RM95 billion for development.

-ADVERTISEMENT-

Ads by 

Here are the highlights of Budget 2023:

Education

• RM55.6 billion allocated for education, the biggest in the budget for a ministry.
• RM825 million in early school aid for students, with students receiving RM150 regardless of their parents’ incomes.
• RM777 million for supplementary food programme (RMT), benefiting 800,000 students and 7,300 canteen operators.
• RM2.3 billion to ensure students have a conducive and safe learning environment.
• RM1.1 billion to repair and maintain all schools, including vernacular and religious schools.
• RM430 million to construct five new schools in Sabah, Sarawak, Terengganu, Cyberjaya and Selangor.
• RM20 million to improve facilities in special needs schools.
• RM188 million to set up 10 Kemas daycare centres.

Development

• RM1.5 billion for sustainable development.
• RM562 million to implement the Sabo dam project.
• RM510 million to improve road infrastructure to Pengerang.
• Pan Borneo Highway to be completed by 2024.
• RM11.4 billion for maintenance and repair of existing government buildings.
• RM5.2 billion for maintenance of state roads.
• RM150 million for the development of border towns near Thailand and Kalimantan.
• RM3.7 billion for small and medium projects across the nation.
• RM500 million on G1-G4 infrastructure projects.

Social Welfare

• In total, Putrajaya will spend RM10 billion in welfare and Bantuan Keluarga Malaysia (BKM) aid.
• RM2.5 billion in welfare aid benefiting 450,000 households.
• RM2,500 in BKM aid for households earning less than RM2,500 monthly.
• Up to RM1,250 BKM aid for singles and RM3,000 for single parents.
• One-off RM500 incentive for female BKM recipients who give birth in 2023.
• RM7.8 billion for BKM which will benefit 8.7 million people.
• RM1 billion in welfare aid for the elderly.
• RM1.2 billion to support disabled people to be financially independent.
• RM10 million in e-hailing vouchers for the disabled.
• RM8 million for social support centres.
• RM734 million for MySalam programme. This will benefit 1.5 million people from the B40 group.
• Voluntary Employees Provident Fund (EPF) contributions raised from RM60,000 to RM100,000 a year.
  RM21 million in grants for operators of welfare homes.
• Limits for Amanah Saham Bumiputera (ASB) and ASB2 savings to increase to RM300,000.
• Government to provide incentives to establish more daycare centres for the disabled.
• RM120 million for Kasih Suri Keluarga Malaysia programme, benefiting 200,000 housewives.

Security

• RM431 million to procure new assets for the police.
• RM42 million to upgrade police quarters.
• RM118 million for the maintenance of armed forces homes.
• RM28 million to upgrade prison staff quarters.
• RM73 million to enhance cybersecurity.
• The government will set up a national scam response centre.

Health

• Total of RM36.1 billion allocated for the health ministry.
• RM11 million for subsidies for mammograms and cervical cancer screening.
• RM20 million to promote Malaysia as a medical tourism destination.
• RM4.9 billion for public healthcare.
• RM420 million to repair dilapidated hospitals and clinics.
• RM1.8 billion to purchase new equipment for hospitals and clinics.
• The government will set up a mental health centre of excellence.
• RM10 million to purchase 3D printing machines for dental health services.
• Allocations to treat rare diseases increased to RM25 million.
• RM80 million for Socso health screening programme.
• RM15 million for Agenda Nasional Malaysia Sihat programme to encourage healthier lifestyles.
• RM80 million for the PEKA B40 programme.
• Duty import and sales tax exemptions for nicotine replacement therapy products.

Economy

• RM235 million to support the development of female entrepreneurs.
• RM50 million for young trader scheme under Bank Simpanan Nasional.
• 2% reduction in income tax of micro SME operators.
• One-off RM1 billion grant to all registered MSMEs and taxi drivers. To benefit one million recipients.
• RM45 billion Semarak Niaga funds for entrepreneurs.
• RM10 billion in funds from Bank Negara Malaysia (BNM) to automate and digitise SMEs.
• RM200 million to boost income and productivity of smallholders.
• GLCs and GLICs to invest up to RM50 billion in 2023.
• Government-linked companies (GLCs) and government-linked investment companies (GLICs) to invest RM50 billion in 2023, including RM45 billion in direct domestic investments.
• The government will provide incentives for multinational companies to establish operations in Malaysia.
• RM100 million to support development of local technology companies.
• RM10 million in matching grants allocated to help SMEs.
• RM800 million to provide RM100 e-wallet credit for 8 million people in the M40.
• Petronas will contribute RM2 billion to the National Trust Fund (KWAN).
• RM1.4 billion to boost connectivity in the five main economic corridors.

Civil service

• RM100 subsidy for civil servants for insurance coverage.
• RM1.5 billion for RM100 increment for all civil servants between Grade 11 to Grade 56.
• RM1.3 billion for one-off RM700 special aid for 1.3 million civil servants under Grade 56.
• RM350 one-off aid for one million retired civil servants.
• Aidilfitri aid for civil servants increased to RM600.
• Special leave for over 500,000 teachers.

Higher education

• RM15.1 billion allocated for the higher education ministry.
• RM3.8 billion for scholarships and education loans.
• RM6.6 billion for Bumiputera education loans.
• RM6.7 billion for TVET training and education.
• RM180 million to fund TVET training, benefitting 13,000 trainees.
• Up to 20% discounts for PTPTN repayments from Nov 1 to April 30, 2023.

Environment

• RM15 billion for flood mitigation initiatives.
• RM2 billion to build retention ponds.
• RM500 million to widen rivers in Kelantan.
• RM3 billion for Green Technology Financing Scheme (GTFS).
• RM150 million from Khazanah Nasional Berhad to support development of green projects.
• RM165 million for Tenaga Nasional Berhad (TNB) to set up solar rooftops and EV charging stations.
• Carbon tax to be introduced.
• 100 million trees to be planted by 2025.
• The government will step up forest restoration projects.
• RM100 million for ecological fiscal transfer (EFT).
• RM36 million to support conservation of elephants and other endangered species.
• RM216 million to clean rivers nationwide.

Job creation and community support

• The MyStep programme will provide 50,000 jobs including 15,000 in the public sector and 35,000 in government-linked companies (GLCs).
• RM750 million to upskill 800,000 workers.
• RM100 million for Mitra to develop entrepreneurs.
• Socso to provide incentives for employers to hire the disabled, Orang Asli, ex-convicts and women returning to work. The incentive worth up to RM750 a month will be given for three months per employee.
• Socso will provide incentives for employers to hire jobless youths.
• RM50 million to boost Bumiputera commercial property ownership.
• RM20 million to set up new urban transformation centres (UTC).
• RM11 million on mobile bank initiatives.
• RM63 million for development of human capital.
• RM50 million to support development of female contractors.
• RM100 million for Khazanah’s Yayasan Hasanah to conduct various community initiatives.

Sabah and Sarawak

• Total RM11.7 billion allocated for Sabah and Sarawak.
• RM1.2 billion to improve the infrastructure in dilapidated schools in Sabah and Sarawak.
• RM209 million to subsidise air travel to rural areas in Sabah and Sarawak.
• RM1.5 billion to improve transport infrastructure in Sabah and Sarawak.
• RM100 million to improve the water supply system in Sarawak.
• RM250 million for expansion of the Sapangar Bay Container Port (SBCP).

Taxes

• Personal income tax reduced by 2% for those earning between RM50,001 to RM100,000.
• This will benefit over one million people in the M40.
• Income tax exemptions of up to RM3,000 for Tadika and daycare fees.
• Tax incentives to attract investors.
• Government reiterates implementation of Tax Identification Number to widen tax base.
• Tax incentives for local pharmaceutical companies will be extended.
• Tax incentives and RM50 million to support development of aerospace components.
• The government will provide special incentives for investors in the chemical and petrol chemical industry.
• Import duties and sales tax exemptions for the purchase of film equipment.
• Tax incentives for NGOs involved in sports at the grassroots level.
• Tax incentives for green initiatives extended to Dec 31, 2025.
  100% income tax exemption for manufacturers of EV charging parts.
• Additional tax deductions for employers who hire former residents of juvenile institutions.
• Government to introduce qualified domestic minimum top-up tax.

Tourism

• RM200 million to promote tourism recovery.
• RM90 million in grants to promote tourism activities.
• New chartered flights to and from East Asia and the Middle East.
• RM10 million to promote eco-tourism.
• RM25 million in incentives to promote domestic tourism.
• RM500 million in tourism financing from BNM.
• RM10 million for the ThinkCity initiative in Kuala Lumpur.

Arts and Culture

• RM50 million to support the local film industry.
• RM102 million to support local artists.
• RM5 million to strengthen national language programmes.
• RM10 million to support preservation of local languages and cultures.

Commodities

• RM200 million to subsidise the logistic cost for the distribution of essential goods.
• The government will hold Keluarga Malaysia sales offering essential items at more affordable prices.
• The government will continue measures to combat the illicit cigarette trade.
• RM20 million in matching grants to support development of local products.
• RM10 million to support the made in Malaysia campaign.
• RM92 million for development of the halal industry.
• Approved permit fees for import of EVs extended to Dec 31 next year.
• RM256 million in monsoon aid for rubber smallholders.

Agriculture

• RM1.8 billion in subsidies for farmers and fishermen.
• RM228 million in aid for padi farmers. This will benefit 240,000 people.
• The government will introduce an agriculture protection scheme.
• RM1 billion to fund agrofood programmes.
• RM56 million to support sustainable farming.
• RM315 million to rubber planting programmes.
• RM40 million to encourage small holders to diversify their crops.
• RM70 million to support the Malaysian Sustainable Palm Oil (MSPO) certification programme.
• The government will support automation initiatives in the plantation sector.

Defence

• RM17.4 billion for the defence ministry, including RM4 billion for the purchase of new military assets.
• RM485 million for the maintenance of all MMEA ships and boats.
• RM330 million for EV infrastructure.

Transport

• RM180 million to improve bus services in Melaka, Kedah, Kota Kinabalu and Kuching.
• Continuation of My50 RapidKL monthly pass to benefit 180,000 users.
• RM16.5 billion for major transport infrastructure projects.
• RM50.2 billion for the MRT3 project.
• RM1 billion for the maritime and logistic industry.

Housing

• Stamp duty discounts of up to 75% for houses worth between RM500,000 to RM1 million.
• RM10 stamp duty for properties transferred between family members.
• RM367 million to build people’s housing projects (PPRs), to benefit 12,400 new residents.
• RM3 billion for housing credit guarantees.
• RM40 electric bill subsidy to be extended.

Digital connectivity

• Phase 2 of the Jendela project to involve RM8 billion in investments, including from industry players.
• RM700 million allocated for Jendela to widen digital connectivity in 47 industrial areas and 3,700 schools.
• Digital Nasional Berhad (DNB) to spend RM1.3 billion in infrastructure developemnt to widen 5G internet coverage nationwide.

Youth and sports

• RM305 million in loans for youths to start businesses.
• The government will introduce a special internet package for youths at RM30 for three months.
• RM400 million to continue the e-Pemula scheme, which will benefit two million youths aged 18 to 20.
• The government will bear the costs of e-hailing, taxi, and motorcycle licences for youths.
• RM145 million to improve sporting infrastructure nationwide.
• RM154 million to develop the local sporting ecosystem.
• RM20 million to develop a drag race circuit.
• RM13 million to develop e-sports.
• RM12 million to support disabled athletes.

Rural communities

• RM305 million for the Orang Asli community.
• RM2.6 billion for Felda, Felcra and Risda.
• RM472 million to improve rural electricity infrastructure.
• RM54 million to build 85 new bridges in rural areas.

Disaster management

• Additional RM400 million in allocation for the National Disaster Management Agency (Nadma) to prepare for year-end floods.
• RM100 million allocated for the national disaster relief fund.
• RM20 million in grants for community associations to assist in natural disasters.

Others

• RM1.5 billion for Islamic development.
• RM150 million for the maintenance and repairs for educational facilities under Jakim.
• RM364 million for research and development for higher education as well as science, technology and innovation ministry.
• RM30 million to improve I-Saraan programme that will benefit 100,000 people.
• All self-employed people will be required to contribute to Socso from next year onwards.
• The government will introduce e-invoice similar to initiatives in France and Brazil.
• The government will table a consumer credit bill in the second quarter of 2023.

- FMT