Malaysian Budget 2012

At 4.05pm Dato Sri Najib Tun Razak took the microphone and spoke about the Budget for Malaysia in 2012.

He started with the historical background of development in Malaysia since independence.

It is not a government that over promises but a government “yang saban hari memikir, merancang dan melaksanakan..” the country’s development.

After 53 budgets, and several national policies since independence, Najib today continues with the policies that had been successful and will propel Malaysia to be more progressive with a functioning democracy.

Key points:

– FDI increased to RM21.2 billion in the first 6 months of 2011.

– International reserves is at RM414 billion on 15th September 2011 and can finance up to 9.5 months of import

–  Out of the whole budget, 78% (RM181.6 billion) for administration, 22% (RM51 billion) for development. Total RM232.6 billion.

– Private Financing Initiative (PFI) will be initiated to built infrastructures (schools, hospital, low cost housing etc) totalling RM6 billion.

– The theme is “Belanjawan Membela Rakyat, Mensejahterakan Negara”

– 17 more service sub-sectors will be liberalised – dentistry, architect, accounting, etc whereby foreign equity up to 100% will be introduced.

– From the years 2011 to 2020, the policy “Dasar Transformasi Nasional” is introduced and will be used.

– Few highways, and projects will be developed in all 5 economic corridors introduced in the previous administration.

– Sukuk; Malaysia introduced world first Sukuk Wakala at USD2 billion and was over subscribed 4 times in 2011 with tax exemptions for any issuance in 2012.

– Felda Global Ventures will be listed. A co-operative where all Felda settlers will get dividends which will be announced soon.

– Sincere and hardworking entrepreneurs will be given 2nd chance if their businesses fail. RM100 million will be provided under Entreprenuer Revitalisation Fund operated by SME Bank.

– Franchising by local companies can improve the economy. Tax cuts will be given to these local franchisees.

– Exemptions from import duties and excise duty for hybrid cars importers till 31 December 2013.

– 70% tax cuts to all hotel operators for the next 5 years.

– Human capital development: Innovation will be the main impetus where R&D must be transformed into viable projects in private and public sector. 2012 is declared as Innovation Year with awards and other initiatives.

– Commercial Innovation Fund of RM500 million will fund companies with innovative products to help them market and produce. The Fund is syariah compliant.

– Knowledge is key in any civilisation or any developed nation. Education sector will be provided RM50.2 billion with extra RM1 billion to repair, build all schools.

– All fees for exams, co-curriculum, insurance for schools will be abolished in 2012 onwards. This means, education is now free for primary and secondary schools.

– Rural Transformation Program is set up to fund water electricity and roads

– Salary and pension revision upwards for civil servants and retirees.

– Civil servants are offered masters degrees and PHDs opportunities to further their studies on part time basis. RM80 million is allocated for this to improve their careers.

– Government will give a one off RM3,000 per person to all 4,300 contract workers

– Government will give a one off RM3,000 to ex-members of special and auxiliary police, including widows and widowers, covering 62,000 people to remember their contribution to the country.

– RM500 million of Army Care Fund to improve army camps etc.

– RM40 million allocated to increase Kedai 1Malaysia to all states.

– Ceiling price for affordable houses (First Home Scheme) will be set from RM220K to RM400K and will be developed by PR1MA (a government agency) in government lands. Husband and wife can apply in a joint loan scheme starting January 2012.

– To protect housebuyers, government will initiate a build and sell scheme for all houses priced at RM600K and below so that risks of stalled housing projects will not fall unto the buyers. Bank Islam will partner government for this scheme.

– Syarikat Perumahan Negara (SPNB) will build 10,000 housing units priced at RM45,000 in 2012.

– Expatriates in Malaysia increased to 41,000 in 2011. They can now start withdrawing money from EPF to buy houses.

– RM300 million will be allocated to build houses for fishermen.

– Puduraya has been upgraded at a cost of RM40 million. Kuala Lumpur General Hospital which is 141 years old will be upgraded at a cost RM300 million with a new wing for outpatients.

– Good news for doctors on call. RM600 per month for working beyond normal hours.

– Private budget taxi operators will get 100% exemption on duty excise on buying new taxi cars. No road tax for all budget taxi operators.

– Suspects with no money to pay defence lawyers will be provided with free defence lawyers.

– Government will provide training to women with potential to push them as company directors. RM10 million will be allocated.

– RM300 for small business as micro loans for women entrepreneurs.

– Discount for senior citizens to travel in LRT and monorail and no outpatient registration fee for them in hospitals.

– RM500 one off payment to household income Rm3000 and below to subsidise children school expenses.

– RM100 for all school children in primary and secondary through Bank Simpanan Nasional involving RM530 million.

– RM200 book voucher to all university students involving 260 million.

– Retiring age for civil servants to be increased from 58 to 60 years old

– Another half month bonus to all civil servants with RM500 for all pensioners. The previous half month bonus was paid last August.

“Perjuangan ini bukan perjuangan sehari, seminggu, sebulan mahupun setahun. Ia adalah perjuangan berdekad lamanya. Inilah sebuah bajet di bawah Dasar Transormasi Nasional diilhamkan demi rakyat. Kepada Allah jua kita berserah.”

Ends at 6.05pm.

So how does this budget compares to Pakatan Rakyat’s budget? I tweeted earlier that:

JebatMustDie JMD

Be prepared to be nauseated by Pakatan tweets where they will gloat all the good things in today’s budget are copied from #BajetPR :p

And right on cue Anwar Ibrahim began lambasting the budget as a copycat of Pakatan’s budget. Story here.

But Eric Choo had put it succinctly in his tweet just now:

choows Eric Choo:

On 1 hand, they say it’s a copycat budget. On the other, they condemn it like it’s the worst sin committed. Are they slapping themselves?

 

There you go. Pakatan chasing its own tail trying to justify their relevance and existence vis-a-viz this Budget.