Budget 2023 - Part 2

 

This is from Bernama. My comments in blue:

Budget 2023 is themed 'Developing Malaysia Madani' which involves an allocation of RM388.1 billion with RM289.1 billion for operating expenditure, RM99 billion for development expenditure including RM2 billion in contingency savings.

OSTB : This is more than the RM332 billion presented last October 2022. It is RM56 billion more. Where is the money coming from? Obviously more debt.

Budget 2023 allocations revised upwards to RM386.14 billion from RM272.3 billion in October 2022 (Bukan RM332b kah? Ok so its RM114 Billion more than the previous Budget that was presented).

Allocation of RM388.1 billion with RM289.1 billion for operating expenditure and RM99 billion for development expenditure  (OSTB : RM386.14 billion??) 

The national debt will reach RM1.2 trillion or more than 60 per cent of GDP for 2023

OSTB : Folks bear this in mind. The National Debt is now RM1.2 Trillion. The other day Rafizi said RM1.6 Trillion. This number keeps changing.

The government expects revenue collection in 2023 to amount to RM291.5 billion compared to RM294.4 billion last year.

OSTB : So revenue is dropping but the Budget allocation has increased. More borrowing. 

The government projects that economic growth will be around 4.5 per cent
The inflation rate this year is expected to be the same as in 2022, at 3.3 per cent

OSTB : The 3.3% inflation rate is a non-starter. No housewife is going to believe this low number.

The government is determined to achieve a sustainable level of fiscal deficit in the medium term with a target of 3.2 per cent to GDP by 2025
The government takes a progressive approach in the context of targeted subsidies or taxation structures

Electricity tariffs have been maintained for all domestic consumers and SMEs

OSTB : Just stop talking about this 'tariffs maintained' nonsense. If you can lower tariffs then say so. If you cannot lower tariffs nothing has changed. The higher tariffs for MV and HV users are sending prices up again.

ASB dividend distribution that is more to the people in need

OSTB : If you lower dividends for high value ASB investors they will withdraw their money and put it elsewhere. The private unit trust companies will benefit. ASB will lose depositors.

The government proposes to introduce a luxury goods tax starting this year

OSTB : No need lah. You already have SST. This will be chaotic.

The government is proposing to impose an excise duty on liquid or gel products containing nicotine that are used for electronic cigarettes and vaping
The government to study introducing Capital Gains Tax for the disposal of unlisted shares by companies from 2024

OSTB : This will create more opportunities for corruption and smuggling of cigarettes. Which will lead to more corruption.

The New Industrial Master Plan 2030 will be announced in the third quarter of 2023 to outline the direction of industrial development focused on high-quality activities and the recruitment of local talent

OSTB : Waste of time.

The government prepares RM50 million to build new, upgrade 3,000 stalls and kiosks as facilities for small hawkers to do business in focal locations

MSME tax rate on taxable income for the first 150,000 reduced from 17 per cent to 15 per cent

OSTB : Tax cuts are good. It will help SMEs survive better.

The government continues to provide various loan and financing facilities for the benefit of MSME entrepreneurs with a total value of up to RM40 billion

OSTB : This is good. Do it fairly (racially), quickly and efficiently.

Extending tax incentives to manufacturing companies that move operations to Malaysia and a 15 percent tax rate to the C-Suite until 2024

 OSTB : This is good.

Starting in 2024, shariah savings assets will be fully segregated to provide competitive returns to 1.25 million members who have shariah accounts.

About RM10 bilion loan fund readied by BNM for SMEs
SJPP prepared to guarantee RM20 bilion SME loans

OSTB : This is also good.    

Government to prepare RM50 million matching grants to encourage automation in the farming sector through the use of robotics and artificial intelligence

RM80 million provided to improve the sustainability of the palm oil industry and counter the Anti-Palm Oil Campaign
RM100 million provided under the Digitisation Grant Scheme for SMEs and small vendors

OSTB : Jaga ketirisan.

The government will strengthen the role of the Digital Economic Centre (PEDi) to help small traders with ICT and e-Commerce knowledge 

The cumulative investment value of Government Linked Companies is estimated to reach RM50 billion this year

 OSTB : This is a waste of taxpayers money. Shut down the GLCs.

RM1 billion financing available under BNM to help MSMEs automate business processes, digitise operations

OSTB : Jaga ketirisan

GLC including Khazanah dan EPF can invest in innovative and high-growth local start-up companies to a value up to RM1.5 billion

 OSTB : Jaga ketirisan
 

Stamp duty waiver for houses worth RM500,000 and below and 75 per cent stamp duty waiver for houses worth over RM500,000 up to RM1 million - Bernama

 OSTB : This is good. It will spur transactions in the housing market.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.