Budget 2023 - Part 3

 

Highlights of Budget 2023/Belanjawan 2023

1. Bankrupts with debts of less than RM50,000 who fulfil certain requirements will be released from bankruptcy on March 1. This is expected to benefit 130,000 people.
2. The government will amend the Insolvency Act 1967 to release bankrupts automatically.

OSTB : This is a good start.

3. Bank Negara will allow consumers to freeze their accounts should they detect any suspicious activities.

OSTB :This could be a crooked move by Bank Negara. This should not absolve both Bank Negara and the banks from their own responsibility of detecting and stopping any suspicious activities in any domestic bank account - even before the account holders themselves detected any suspicious activities. (Or worse, they were NOT able to detect it). 

Bank Negara and the banks should not use this as an excuse to wash their hands of their responsibility.  Bank Negara has still not explained what action they are going to take over that obviously criminal negligence (if not outright crime) of not stopping all that money laundering activity involving 1MDB - when the huge funds flows were clearly detected by Bank Negara? 

4. RM10 million to support the National Scam Response Centre.

OSTB :  More importantly what punitive action will be taken AFTER a scam is discovered? Scams have been dicovered before without any punitive action being taken. In Singapore there are hardly any scams. If there are there is punitive action to protect the public from scammers. What punitive action do we have here to protect the public from scammers? Please state clearly.

 
5. A special task force to reform government agencies, known as STAR, will be set up. It will be led by the chief secretary to the government.

OSTB : After the Chief Secretary has completed his Kos Sara Hidup report?

6. Malaysian Road Records Information System (Marris) allocations increased to RM5.2 billion.

OSTB : Excuse me? RM5.2 billion for keeping records of motor vehicle registrations?? This is 1/3 of the RM15 billion government revenue from excise duties and import duties. Why so much money for the JPJ? Sounds like a scam.

7. RM50 million to install lampposts in accident-prone areas.
8. Government will use district engineers to speed up the repairing of federal roads.
9. RM2.7 billion to repair and upgrade federal roads.

OSTB : A good idea to use district engineers. But please jaga ketirisan. 

10. RM1.2 billion to repair 400 dilapidated clinics and 380 dilapidated schools.
11. The government plans to table amendments to the Whistleblowers Act to better protect whistleblowers.

OSTB : Good. Amend the Whistleblowers Act quickly. In its present form it makes fools of the people.

12. The government plans to table the Government Procurement Act.
13. Government procurement must be transparent. RM22 billion worth of contracts linked to flood mitigation projects and the Jana Wibawa project were awarded via direct negotiation.

OSTB : I will believe this when I see it.

14. Private sector to establish a “Madani wakaf” involving assets worth more than RM1 billion.
15. The government will increase the availability of Islamic financing.
 

16. The government will also support the plans for the private sector to develop a port in Pulau Carey.
 

OSTB : Also known as the FOURTH port in Port Klang. Do you really need this port in Pulau Carey? Talk is the West Port, North Port and even the bulk terminal will be "logistically" linked to this new  port. Meaning the overall control of port activities will be "structured" through this FOURTH PORT. Meaning the other ports must pay money to this new port. This is what I heard. Betul kah? Creating yet another monopoly?

17. The government will support the development of the Sanglang port in Perlis.
18. Putrajaya to expand Subang and Penang airports to attract investments. This is more economical than the proposed construction of a RM7 billion airport in Kulim, says the prime minister.

OSTB : Good idea. It is high time we built a world class international airport in Penang - like the KLIA. If there is business to justify it then also expand Subang Airport again. 

 
19. The Tun Razak Exchange will become the country’s international financial hub.

OSTB :  What a stupid idea.  You become an international financial hub by providing an ecosystem to nurture financial professionals - thousands of CEOs of merchant banks, investment banks, professional project financiers, thousands of world class loan syndicators, armies of bond traders, bond specialists and armies of Forex dealers. You have to liberalise the banking and financial sector. One bangunan Tun Razak Exchange will not become an international financial hub. What a stupid idea.

 
20. Bank Pembangunan Malaysia Berhad to provide RM6 billion in strategic funding to encourage automation.
21. Tax incentives for aerospace industry will be extended to Dec 31, 2025.
22. Tax incentives for manufacturers to move operations to Malaysia will be extended to 2024.

OSTB : A good idea. Dont know about Bank Pembangunan though.

 
23. The government will introduce a New Industry Master Plan 2030. This will include the restructuring of investment incentives.

OSTB : Wasting time.

24. The government will give incentives to local councils that make it easier for businesses to be set up.

OSTB : I have a much better and much cheaper and far more effective solution - allow businesses to self-register online. No need to meet the local councils. They are all corrupted. Use an 'online self-regulated compliance' method. This means the applicants are responsible for providing all the required information truthfully. This means the local councils will accept all the information submitted  by an applicant online and register the business, issue licenses immediately.  Then the local council can physically check the compliance within say 12 months after registration. Fire or take disciplinary action against heads of local councils who cannot expedite the registration of new businesses.

25. Government proposes extending the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentives until Dec 31, 2025.
26. Bank Negara to provide RM2 billion in loans to support green technology startups and help SMEs embrace low-carbon practices.

OSTB : Wasting money.

27. RM50 million to increase the number of wildlife rangers to 1,500 people.
28. RM38 million allocated to protect endangered wildlife including tigers and elephants.
29. The government will increase allocations given to states to preserve forests from RM70 million a year to RM150 million a year.

OSTB :This is a joke. The jungle is full of cartels.

30. RM50 million for the armed forces, fire and rescue department, and Rela to prepare for natural disasters.
31. RM150 million for Nadma to prepare for natural disasters.
32. Six flood mitigation projects will be re-tendered.
33. Anwar gave the example of flood mitigation projects. He said the government could have saved RM2 billion for the projects awarded by the previous government.
34. High impact projects must be awarded via tenders to ensure the government enjoys the best value and savings.

OSTB : Yawn.

35. Bank Negara to provide nearly RM10 billion in loans for SMEs.

OSTB : Do it quickly.

36. Government to waive driving test fees for taxi, bus, e-hailing and B2 motorcycle licenses.

OSTB :  Will this solve corruption at the JPJs?

37. Syarikat Jaminan Pembiayaan Perniagaan will provide RM20 billion in loans to SMEs in high value sectors.
38. RM1.7 billion in loan facilities under Bank Negara, BSN and TEKUN.
39. Government agencies to provide RM40 billion in loan facilities for MSMEs.

OSTB : Do it quickly and efficiently.

40. RM176 million to upgrade business premises and facilities under Mara, DBKL, PUNB and UDA.
41. RM50 million to build and upgrade 3,000 stalls and kiosks nationwide
42. Income tax for micro SMEs reduced from 17% to 15% for the first RM150,000.
43. The government will incentivise self declaration for income tax arrears beginning June 1.

44. Half of revenue from excise duties collected under the Generational Endgame (GEG) law will be channelled to the health ministry.

 OSTB :To pay that monopoly pharmaceutical supplier? Banyak cantik.

45. Putrajaya to introduce excise duties on vape and e-cigarette liquids containing nicotine.

OSTB : Cigarette smuggling will increase.

46. The government will study the possibility of introducing a capital gains tax from 2024.

OSTB : A very bad idea.

 
47. The government will introduce wealth tax. Luxury watches and goods will be taxed.

OSTB : Another bad idea.

48. The government will maintain electricity subsidies for all domestic users and SMEs.

OSTB : An empty statement.

 
49. Lower income Amanah Saham Bumiputera (ASB) contributors will be given more dividends.
 OSTB : There will be a huge outflow of money from ASB. Dont say I did not warn you.

50. The government will table a Fiscal Responsibility Act in Parliament this year to ensure better management of the economy in the future.
51. Government aims to reduce fiscal deficit to 5% this year, compared to 5.6% in 2022.
52. Government aims to collect RM291.5 billion in revenue, a decrease compared to RM294.4 billion in 2022.

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