Government Revises Deficit Target To 3.2 Per Cent In 2015

Datuk Seri Najib Tun RazakPUTRAJAYA, Jan 20 (Bernama) -- The government on Tuesday revised the country's fiscal deficit target for 2015 to 3.2 per cent of gross domestic product (GDP), up from the 3.0 per cent set out in the Budget, in the wake of falling oil prices.

Prime Minister Datuk Seri Najib Tun Razak said without any fiscal measures, the deficit would rise to 3.9 per cent of GDP.

Speaking at a special address here this morning, Najib said Malaysians have to accept the reality that the original Budget 2015 target could not be achieved, due to external factors such as the slump in global oil prices.

"But what is important is our commitment to further reducing the fiscal deficit," he said, adding the latest target is still lower than the 3.5 per cent in 2014.

The premier also stressed that the strategies announced by the government today are proactive adjustment measures following external factors beyond our control and that the country is not in an economic crisis.

He explained that at the forecast oil price of US$55 per barrel, there will be a revenue shortfall of RM13.8 billion.

"Despite the savings of RM10.7 billion from the implementation of the managed float mechanism for retail fuel prices, the government still faces a revenue shortfall of RM8.3 billion to accommodate the 2015 Budget measures," he said.

The situation requires the government to take measures to reduce the deficit in line with the government's commitment towards fiscal consolidation, he said, adding the government will not compromise on its national development planning and neglect the people's welfare.

On the ringgit, Najib said the local unit is not the only currency to have depreciated against the US dollar, as nearly all regional currencies have weakened against the US dollar since September 2014.

?The recent volatile capital flows and significant fall in the value of the ringgit were also due to concerns over the impact of the sharp fall in oil prices, he added.

However, Najib said, the government is confident that over time, the ringgit's exchange rate will adjust to reflect Malaysia's strong economic fundamentals.

"Of importance, our financial system continues to function in an orderly manner. Most importantly, there has been no disruption to financial intermediation with lending activities continuing smoothly," he said.

Furthermore, he said, greater policy flexibility, adequate international reserves, deeper and more diversified financial markets, sound banking system and strong domestic institutional investors will increase the country's resilience to volatile cash flows.

Call on Cabinet tomorrow to convene a special Parliamentary meeting end of this month to present a revised 2015 Budget

The Cabinet tomorrow should do what it should have done at its last Cabinet meeting for 2014 on Dec. 17 – to convene a Special meeting of Parliament this month to present a revised Budget 2015.

When the Budget 2015 was drawn up, it was based on the oil price assumption of US$100 (RM357) per barrel.

Since the Prime Minister, Datuk Seri Najib Razak presented Budget 2015 on Oct. 25, Brent crude prices had fallen from US$100 to a six year-low of US$47.36.

Oil and gas-related income is a backbone of the Malaysian economy as it currently accounts for 30% of the government’s total revenue.
With the plunge in crude oil prices, the Government is duty-bound to revise the 2015 Budget and seek parliamentary approval for revision of the 2015 Budget.

The Cabinet should decide on convening a Special Parliament before the end of January now that Prime Minister who is also Finance Minsiter has finally conceded today on the need to restructure the 2015 Budget.

The revised 2015 Budget is urgent and imperative as a result of economic and financial developments with far-reaching implications, like the Malaysian ringgit hitting a 5 ½ low versus the dollar, touching a low of 3.5870 versus the dollar as of 0626 GMT, it lowest since July 2009 and the RM36 billion fall in Malaysia’s foreign reserves in 2014.

The 2015 Budget of RM273.9 billion is clearly not sustainable as a result of the plunging commodity prices, not only oil, but also palm oil and rubber. In fact, economists are warning that Malaysia may be facing a deflation.

A special Parliament meeting should also debate the many urgent issues confronting the country, including (1) the worst floods catastrophe in living memory; (2) the Report of the Royal Commission of Inquiry into the Illegal Immigrants in Sabah; (3) the RM1.3 trillion illegal capital flight in the ten years from 2003 to 2012; and (4) the urgent need for moderates in Malaysia regardless of race, religion, region or politics to unite and defeat the rhetoric and politics of hate, bigotry, intolerance and extremism.

'Budget focus on bumis not due to racist gov't'

 

Prime Minister Najib Abdul Razak's emphasis on the bumiputera agenda during Budget 2015 is not because it's a racist government, said Deputy Finance Minister Ahmad Maslan.

This is to address the bumiputera population which is set to increase to 70 percent in 2020.

The government feels that only if bumiputeras advance, can Malaysia develop, he explained.

"We do not have the intention of being racist. We do not want this issue to arise," he said.

He was speaking at a briefing on GST to some 700 civil servants in Bangi, Selangor.

"However, Malaysia can only advance when 70 percent of its population advances."

"Others (non-bumiputera), they work hard and have managed to move forward, but the 70 percent still lags behind, with most still staying in villages," Ahmad said.

'Rich Chinese, non-bumis reproduce less'

He said that the bumiputera’s composition increased following a drop in the reproduction rate among Chinese and non-bumiputera families when they get rich.

 

The bumiputera meanwhile maintained three to six children in a family.

 

Najib has underlined the bumiputera agenda as one of the seven strategies in his budget speech, and announced plans to help the bumiputera. 

　

Najib said the target of 30 percent bumiputera equity has yet to be achieved, and that the effective control over corporations was only 10 percent.

　

In his Ahmad also took the opportunity to lambast the ‘Rakyat Hakim Negara’ (People the judge of the nation) campaign being held in solidarity with the opposition leader Anwar Ibrahim's sodomy appeal in federal court next week. 

 

He said that it was Anwar as the former finance minister who first proposed the new tax system.

　

"When you talk about 'Rakyat Hakim Negara', that has only happened during national polls.

　

"But on a personal issue (like sodomy II trial), you have to take responsibility in your own capacity, there is no need to involve the rest of the people," said Ahmad, who is also the Umno information chief.

　

He cautioned the people against the campaign to flood the Federal Court next Tuesday for Anwar's final appeal.

　

"Read the judgement of three judges from Court of Appeal, read it. This was the only judgement in the world that I read to find out (the reason of five-year sentence,)" he said.

　

He said he hoped there won't be any chaos on the day of hearing at Palace of Justice, Putrajaya.

'Bajet fokus Bumi bukan kerana kerajaan rasis'

Many thanks for the goodies, Mr PM

Budget 2015 is certainly people-friendly, but it falls short in responding to economic and financial imperatives.

By Ramon Navaratnam

Now that our PM has delivered a truly people-friendly budget, let’s give him a big thank you for all the goodies. But let’s also ask ourselves how Budget 2015 could have been better. After all, it’s always good to review, revise and improve. This applies to ourselves as individuals and should apply to us as a nation.

Firstly the relationship between the People’s Budget and the Capital Budget could have been more balanced. The budget tended to be more populist in its stance and less concerned with responding strenuously to the economic and financial imperatives that the PM himself mentioned in his speech.

There was little treatment of how to deal with the long term structural issues—how to reduce capital outflows, how to counter the brain drain, and what to do to promote meritocracy and raise international competitiveness to higher levels. Neither did we hear much about how the government proposes to address some of the obvious causes of rising inflation, which are corruption, wastage in expenditure, protectionism, negotiated tenders and sheer inefficiencies in many parts of our economy.

The budget addressed the short term problems quite well, but the structural and harder challenges received less attention.

Secondly, although we understand that the short-term people’s budget and the longer term capital budget have some “symbiotic relationship”, we would like the government to give higher priority to efforts that would ensure good governance and the socio-economic sustainability of our system of government.

This critical issue of continued sustainability for the future well-being of our country and our people was recently admirably highlighted by the Sultan of Perak. We could certainly do much better by taking heed of his sound advice.

Thirdly, the seven main strategies mentioned in the budget speech are positive, useful and welcome. But it would be better at this advanced stage of our national development to focus much more on a Malaysian agenda that has no racial basis.

Let’s formulate our socio-economic planning and budgets on the basis of needs and not race or religion. Please unite and don’t divide Malaysians. After all, we are all God’s children and living in One Malaysia.

Let’s increasingly concentrate on just universal human values rather than narrow race and religious parochialism in our policies and implementation of them.

What we need in our budgets is inclusiveness, not exclusiveness. We need to promote greater national unity instead of creating any sense of disunity or even perceived feelings of alienation.

Finally, I believe that Budget 2015 was generally well received by the rakyat because it contains a lot of perks for them. However, let’s keep our socio-economic and political policies focused more on long term sustainability and continuing and greater peace and progress for all Malaysians, please.

Tan Sri Ramon Navaratnam, a former deputy secretary-general of the Finance Ministry, now heads the ASLI Center of Public Policy Studies.

Do we still need a race-based budget?

A prominent economist says Budget 2015 was crafted to make everyone happy, but falls short on addressing structural economic issues.

FMT

KUALA LUMPUR: Economist Ramon Navaratnam believes Prime Minister Najib Tun Razak tries too hard to give Malaysia a people-friendly budget and does it at the expense of addressing key structural economic issues.

Navaratnam, a former Deputy Secretary-General of the Ministry of Finance, said in an interview with FMT that Budget 2015′s emphasis on Malay and Bumiputera policies, in particular, was no longer necessary now that Malaysia was moving towards developed nation status.

“The budget is racially based,” he said. “Why do we need race-based policies anymore? We’ve passed that stage.

“That is the weakness of the budget. We shouldn’t keep thinking along racial lines anymore. It slows down progress.”

Navaratnam sees “too many political gimmicks” in the budget. “Politics shouldn’t have any role to play in the economy,” he said.

Explaining his opposition to race-based policies, he said the trouble was that they were too often and too widely abused, leading to wastage.

“The worst Bumiputera contractors are getting the job, which is why despite our spending on infrastructure, there’s very little return,” he added.

“These policies limit opportunities,” he said and he blamed them for capital flight out of the country.

Navaratnam also said he was discouraged that the budget took the easy way of ensuring the government’s popularity, handing out grants to the people without addressing structural issues for the longer term.

“This is definitely a people’s budget,” he said. “Every demographic is given something, although some not necessarily as significant as others.

“This does not build capacity, but consumption orientated indulgence. Does the BR1M grant generate income?”

Referring to Najib’s budget speech, he said the Prime Minister should have highlighted economic reports and the real macroeconomic outlook, providing specific figures on capital outflows, brain drain and other key structural problems that the nation faces.

He said he doubted that the government would achieve its target of reducing the national deficit by 3.5%, adding that he foresaw Najib tabling proposals for supplementary budgets in the months to come.

Anwar kecewa, anggap Bajet 2015 tak munasabah

Najib unveils Budget 2015 in face of tough year

Prime Minister Najib Abdul Razak today unveiled details of Budget 2015 ahead of what is expected to be a tougher year for ordinary Malaysians.

The budget comes amid further subsidy cuts on petrol and diesel at the beginning of this month and the anticipated implementation of the Goods and Services Tax (GST) that will come into force next April.

Najib, who is also finance minister, arrived in Parliament in an orange baju Melayu and began addressing the house at 4.05pm.

"This is my sixth budget since I assumed leadership of the administration, and the  country’s 56th budget. The 2015 Budget completes the ten Malaysia Plans," starts the PM.

"Further, in May 2015, the 11th Malaysia Plan (11MP) will be launched. At the same time, a  new approach known as the Malaysian National Development Strategy (MyNDS) is being formulated," he added.

Malaysiakini brings you the salient points of the budget speech here as it unfolds.

Total budget for 2015:

RM273.94 billion (increase of RM9.3 billion):

• Operation expenditure: RM223.44 billion (81.6%)
• Development expenditure: RM50.5 billion (18.4%)

Performance

Projected GDP growth 

 

2015: 5.0% - 6.0%

2014: 5.5% - 6.0%

 

Projected Revenue 

 

2015: RM235.2 bil

2014: RM224.1 bil

 

Projected Deficit 

 

2015: 3.0% of GDP

2014: 3.5%

• Since 2009, 196 projects from 12 national key economic areas (NKEAs) and 6 strategic reform initiatives (SRIs) implemented.


• Total investment reached RM219 billion and over 437,000 high-paying job opportunities created.


• The economy grew in all sectors and registered GDP growth of 6.3%.


• For 2015, economic growth is forecast between 5% and 6% while fiscal deficit is projected to decline to 3% of GDP.


• Foreign direct investment (FDI) totalled RM38.7 billion in 2013

Tax revenue and expenditure

Government revenue forecast to be RM235.2 billion, up by RM10.2 billion compared to 2014.

• Forecast GST revenue: RM23.2 billion
• Loss from exempted items: RM3.9 billion
• Loss from Sales and Service Tax abolition: RM13.8 billion

This leaves RM5.6 billion, RM4.9 billion of which will be redistributed in welfare programmes, including BR1M.

Net revenue from GST for 2015 will be RM690 million.

GST exemption

Based on feedback from the public the government will expand exemption list to include:

• RON95 petrol, diesel and LPG
• Electricity up to 300 Kwh (covering 70 percent households)
• All local and imported fruit
• White and wholemeal bread, tea, coffee, noodles
• Medication for treatment of 30 diseases including heart disease and cancer
• Newspapers

Tax exemption for GST training for companies will be introduced.

532 items or 56% of consumer price index basket of goods, including food items, is expected to see a price reduction.

The rest will see a price hike of less than 10 percent.

BR1M (Bantuan Rakyat 1Malaysia)

BR1M to increase from RM650 to RM950 for households with a monthly income of RM3,000 and below.

It would be disbursed in three stages of RM300 each to be paid in January and May with balance RM350 in Sept 2015.

Singles aged 21 and above earning RM2,000 will get RM350 a year, up from RM300.

Kin of BR1M recipients will get RM1,000 upon the death of the recipient.

Subsidy cuts

A new mechanism for fuel subsidy to be announced soon, due to rising subsidy bill from higher number of vehicles on the road.

Income tax

• Individual income tax rates will be reduced by 1 to 3 percentage points - 300,000 individual taxpayers no longer need to pay income tax.
   
• Taxpayers with family and income of RM4,000 per month will be exempted from pay income tax.
   
• Individual income tax will be restructured whereby maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000. Maximum tax rate at 26% will be reduced to 24%, 24.5% and 25%.

Corporate income tax

• For year of assessment 2015, cooperative income tax rate will also be reduced by 1 to 2 percentage points.
   
• For year of assessment 2016, corporate income tax rate will be reduced by 1 percentage point from 25% to 24%.
   
• For year of assessment 2016, income tax rate for SMEs will also be reduced by 1 percentage  point from 20% to 19%.

Civil Servants

• A half-month bonus with minimum payment of RM500 for civil servants.


• Government pensioners will receive RM250 in special assistance.


• RM300 a month for contract officers and staff of Kemas, Jasa, JPNIN, Jakim and Seranta Felda which have served for more than 15 years.


• Minimum eligibility for civil servants' housing loan increased from RM80,000 to RM12,000 and ceiling increased from RM450,000 to RM600,000. The RM100 processing fee also abolished.


• Government to build additional 5,380 units of houses for civil servants under the 1Malaysia Civil Servants' Housing programme (PPA1M). 1,600 units to be built in Putrajaya, 1,530 units in Bukit Jalil, 1,290 units in Papar, Sabah, 960 units in Bukit Pinang, Kedah.


• Minimum price of these houses at RM150,000 to be reduced to RM90,000 for a minimum floorspace of 850 sq ft and qualifying requirement of household income increased from RM8,000 to RM10,000.


• RM500 million for repair and maintenance of quarters for military personnel, police, teachers and medical staff nationwide.


• RM105 million for maintenance of government quarters in 126 locations.

MP allowances raise

• Allowance of MPs of Dewan Rakyat and Dewan Negara will be increased from the equivalent grade 54 to equivalent grade Jusa C.
   
• The salaries and allowances of the Speaker of Dewan Rakyat and Speaker of Dewan Negara as well as their respective deputies will be increased  effective Jan 1, 2015.
   
• The government will review the salary scheme of members of the administration and make a decision at an appropriate time. This includes the prime minister, the deputy prime minister, ministers and deputy ministers.
   
• A half-month bonus with a minimum payment of RM500 to be paid in January 2015. Government pensioners will also receive special financial assistance of RM250.

Lower education

• RM1.2 billion allocation for vocational education  to raise enrollment in vocational and technical institutions.


• RM100 million allocated to create more space in vocational colleges.


• Tax breaks for companies that offer scholarships for technical certification, internships and additional accredited professional training.

RM800 million allocation for schools:

• National schools: RM450 million;
• National-type Chinese, Tamil schools: RM50 million;
• Religious schools: RM50 million;
• Fully residential schools: RM50 million;
• Government aided religious schools: RM50 million;
• Mara junior science colleges: RM50 million;
• Registered sekolah pondok: RM25 million;
• National-type Chinese secondary schools (conforming schools) using the national curriculum: RM25 million

Schools' water and electricity bills to be paid for up to RM5,000 per month (up from RM2,000).

Student assistance

 

Government to continue annual RM100 assistance for 5.4 million primary and secondary school students.

 

RM250 book voucher per student will also continue at a cost of RM235 million for 1.3 million students.

Higher education

RM3 billion to sponsor tertiary students:

• RM1.9 billion for the Public Services Department
• RM759 million for Ministry of Education
• RM258 million for Ministry of Health

English proficiency requirement for public tertiary institutions raised:

• Arts and Social Science courses - Band 2 in the Malaysian University English Test (Muet)
• Science, Technology, Engineering and Mathematics (STEM) courses - Band 3
• Law and Medical courses - Band 4

To graduate, students must achieve:

• Arts and Social Science courses - Band 3
• STEM courses - Band 4
• Law and Medical courses - Band 5

RM112 million for the MyBrain programme to provide scholarship to PhD students who are also employed in private and public sector.

National Higher Education Fund (PTPTN)

Najib says a soul with not rest if someone dies without paying his debts.

As such to encourage PTPTN defaulters to make payments, the following incentives are proposed:

• 10% rebate for those who continuously pay for 12 moths, up to Dec 31, 2015.
   
• 20% discount for those who pay in lump sum up to March 31, 2015.

Households with an income of RM4,000 and under will also enjoy a matching grant if they contribute to the National Education Savings Scheme (SSPN). This is up from an income limit of RM2,000.
         
Workers

• Employment Act 1955 reviewed to ensure better conditions of employment, appointment and dismissal, flexible working arrangements and  termination benefits.
   
• Reskilling opportunities and temporary financial aid for retrenched workers through Employment Insurance System.
   
• RM300 million for technical training and education aid for Indian youths from low-income families.
   
• RM300 million matching grants for upskilling of 30,000 workers.
   
• RM570 million for training programmes for semi-skilled workers.
   
• One-year work permit for eligible expatriates with paid-up capital of RM75,000.

Bumiputera

In corporate equity ownership, the bumiputera have yet to
achieve the 30% target.

Effective control over corporations is currently only around 10%.

To aid bumiputera:

• RM600 million for Ekuinas to increase bumiputera ownership in private companies and government-linked companies.


• RM30 million for Bumiputera Entrepeneurs Startup Scheme.


• RM2 billion for Mara to education sponsorship for eligible bumiputera students.


• Expanded compete programmes for bumiputera based on meritocracy in privatised projects including MRT and Pan-Borneo Highway.

Sabah and Sarawak

• RM27 billion in Pan-Borneo Highway (936km in Sarawak and 727km in Sabah).
   
• RM262 million to finance cost of transportation and enforcement of price controls for price standardisation policy.
   
• Two more Kedai Rakyat 1Malaysia in Sabah and three in Sarawak, bringing total to 19.
   
• RM19 million in hill paddy subsidy.

Esscom

• RM230 million (via Petronas CSR programme) for high-capacity equipment.
   
• RM50 million to upgrade Lahad Datu airport runway to ensure high-capacity aircraft can land.
   
• Staggered relocation of water villages in Semporna and Sandakan.

Services industry support

• RM5 billion for schemes for small and medium enterprises for funding of up to RM5 million each with 30 percent government guarantee.
   
• RM300 million for research and development to enter new markets.

Shipping

Insurance assistance for ship owners of ships with capacity of 300 tonnes and below

Industrial zone

• Tax holiday of up to 5 years for less for industrial area management


• 70% income tax break for industrial area management in more developed areas

Infrastructure

• Sungai Besi - Hulu Kelang highway: RM 5.7 billion
• Taiping - Banting highway: RM5 billion
• Damansara Shah Alam highway: RM4.2 billion
• KL Outer Ring Road: RM1.6 billion
• Upgrade East Coast railway: RM150 million
• Selayang - Putrajaya MRT line: RM 23 billion
• LRT3, Bandar Utama to Shah Alam and Klang: RM9 billion
• Pengerang Industrial Petroleum Complex: RM69 billion

High-speed broadband

• High speed broadband at high-impact areas, RM2.7 billion in three years.

Small and medium-size enterprises (SMEs)

• RM375 million for seed funding of which RM120 million from private sector.
   
• RM80 million for automation fund.
   
• RM500 million to benefit 5000 Indian entrepreneurs.
   
• RM50 million to benefit ex-servicemen entrepreneurs.
   
• Sustainable Mobility Fund of RM70 million will be established under SME Bank for manufacturing electricity vehicle. Initially, 50 electric buses will be introduced.
   
• RM50 million to develop a private-public research network.

Youth

• RM230 million for a National Youth Transportation Programme, which includes a revamp of the National Service Training Programme, improving Rakan Muda and introducing Unity Camps.
   
• RM10 million to encourage youth volunteerism programmes.
   
• Youth Agroprenuer Programme for 1,200 youths earning RM5,000 a month and under.
   
• Upskilling youths through programmes like Coding Bootcamp.
   
• RM100 million for three 1Malaysia Youth City pilot projects, a project to create an eco-system of housing, recreating, sporting and business facilities.
   
• Youth Housing Scheme for married youths aged 25-40 to buy their first home. Household income must not exceed RM10,000 and maximum house price is RM500,000. Maximum loan period is 35 years. Those in the programme will also receive RM200 a month for the first two years, and 50% stamp duty exemption.
   
• Government to guarantee loans for up to 10%, to ensure borrowers can get full financing including cost of insurance.
   
• Borrowers can withdraw from EPF Account 2 to top up their monthly installment and other related costs.   

Sports

• Government to set up Sporting National Blueprint with a total allocation of RM103 million.


• Malaysian Talent Identification programme to identify sporting talent from primary schools


• Improve performance in football, cycling, badminton, sepak takraw, swimming and athletics


• Foster FitMalaysia Programme with focus on building physical fitness among Malaysians


• The first Saturday of every November to be National Sports Day

Women

• Women directors to be trained to fill positions as board members in GLCs and private sector.


• 1Malaysia Support for Housewives programme to encourage women to return to the job market.


• Talent Corp to set up Women Career Comeback Programme to assist professional women returning to the job market.


• RM30 million for Amanah Ikhtiar Malaysia to encourage entrepreneurship among Indian women.


• Childcare leave eligibility will no longer be tied to the duration of maternity leave.


• Government to relax conditions for employers to set up childcare centres.

Public transport

• Introduction of intercity bus services for those commuting from outside to Kuala Lumpur to work. A 30 percent monthly discount will be offered with three services as a start: Rawang-KL, Klang-KL and Seremban-KL.


• Electric train services (ETS) to be implemented for the Ipoh-Butterworth route starting April 2015.


• Upgrade of stage bus services in several states through a contracting system with existing bus companies. To be implemented in phases in Kuching, Ipoh, Seremban, Kuala Terengganu and Kangar.

Agriculture, fishing

• RM100 million to encourage paddy cultivation in Rompin, Batang Lupar, Kota Belud and Pekan


• Rise in living allowance for fishermen:
  • Zone A:  RM300
  • Zone B : RM250


• RM200 monthly allowance for full-time coastal fishermen


• RM60 million for aquaculture and cage farming of seafood to supplement fishermen's income during monsoon


• RM250 million for fishermen housing projects and to improve the living conditions of fishing villages.


• RM500 one-off assistance for rubber smallholders affected by decline in rubber price.


• Soft loan to smallholder cooperatives so they can buy rubber directly from smallholders


• RM41 million in incentives for oil palm smallholders

Health services

• Tax relief increased from RM5,000 to RM6,000 a year for patients undergoing treatment of serious diseases such as cancer, kidney failure and heart attack. Relief is available for taxpayers, spouse and children.
   
• Two new hospitals to be built, namely Hospital Dungun in Terengganu and Hospital Seri Iskandar in Perak.
   
• 20 health clinics and four dental clinics to be built in Kuala Lipis, Pahang and Kluang, Johor.
   
• Setting up of 30 more 1Malaysia clinics, bringing the total to 290.
   
• Replace 635 old units of haemodialysis machines in government hospitals and clinics for RM30 million.
   
• Government also to provide space in government hospitals and health clinics for the private sector to place 244 haemodialysis machines.
   
• RM45.4 million to provide medication for patients undergoing chronic and acute haemodialysis treatment.
   
• Government to purchase equipments to combat dengue epidemic as well as distributing 55,000 dengue test kits for free to private clinics at a cost of RM30 million.

Welfare

• RM1.2 billion for financial assistance for poor families, senior citizens and the disabled.
   
• Disabled allowance up by RM50 to RM350 a month (working), RM200 (not-working).
   
• Tax relief of up to RM6,000 for those with disabled children, up from RM5,000.
   
• Tax relief of up to RM6,000 to buy equipment for disabled, including for the taxpayer, spouse, children and parents (up from RM5,000).
   
• Daily food allowance for welfare institutions up from RM8 to RM16 per resident.
   
• Additional five senior citizens activity centres and care services, including free transportation to hospital.
   
• RM711 million for early education, including Permata.

Housing

RM1.3 billion for 1Malaysia People's Housing Programme (PR1MA). Conditions revised to:

• Household income ceiling RM10,000 (up from RM8,000).
   
• Rent-To-Own Scheme for those who cannot get bank financing.
   
• RM644 million to build more low cost flats (PPR).
   
• Syarikat Perumahan Negara Berhad (SPNB) to build 12,000 units of Rumah Mesra Rakyat (RMR), 5,000 units of Rumah Idaman Rakyat and 20,000 units of Rumah Aspirasi Rakyat  on privately-owned land.
   
• Capital Gains Tax to be self-assessed by taxpayer effective from the year 2016.

Rural development

• RM943 million to construct 635km of rural roads including former logging roads in Sabah and Sarawak.


• RM1.1 billion to implement electricity connection for 15,000 houses


• RM394 million to implement rural clean water supply for 7,500 houses


• RM200 million to rehabilitate 9,500 dilapidated houses.


• RM160 million to improve rural air travel services in Sabah and Sarawak


• RM352 million for Orang Asli economic development programmes, infrastructure facilities and improving standard of living.


• RM26 million to install additional 10 lamp posts in 22,000 villages.

Water

• Government to formulate a National Water Blueprint for sustainable long-term water supply.


• RM112 million to reduce non-revenue water by detecting and repairing leaking pipes.

Crime and security

• RM17.7 billion for the Royal Malaysian Armed Forces and RM9.1 billion for police. RM804 million for Maritime Enforcement Agency Malaysia to strengthen maritime enforcement.
   
• Increase intake of police personnel by 11,757 and build an additional 14 police headquarters.
   
• A thousand new units of patrol motorcycles and RM121 million for other police programmes.
   
• RM7 billion for armed forces training.
   
• RM177 for People's Volunteer Corps' (Rela).
   
• RM50 million grant for NGOs including uniformed  bodies that are involved in community development programmes, unity, social welfare, consumerism,  health and security.

Miscellaneous

• RM 30 million over three years for an Al-Quran Printing Centre in Putrajaya, the second largest in the world after Saudi Arabia.

Najib’s 2015 Budget overshadowed by outrageous parliamentary replies and blatant government double standards in past three days

 By Lim Kit Siang Blog

The Prime Minister, Datuk Seri Najib Razak would not have expected that his 2015 Budget to be presented in Parliament at 4 pm today would have been overshadowed by outrageous parliamentary replies of his Ministers and blatant government double standards in the past three days.
The reply by the Minister in the Prime Minister’s Department, Nancy Shukri to the Penang Chief Minister and DAP MP for Bagan, Lim Guan Eng, on the first day of the current 28-day Budget Parliament on Tuesday must take the cake for being the most outrageous parliamentary statement in the five-year Najib premiership making even the most affable bristle at the cynical contempt for what is right and wrong.

Nancy said in her reply that no action would be taken on Perkasa chief Ibrahim Ali over his threat to burn the Malay-language bible as he was “only defending the sanctity of Islam”.
Nancy did not do herself any favours when she said yesterday that the Attorney-General’s Chambers decided not to prosecute Ibrahim under the Sedition Act because his threat to burn copies of the Bible with the term “Allah” was in line with the federal constitution.

It is time the Attorney-General, Tan Sri Gani Patail surfaces and explain where in the Federal Constitution does it give protection and immunity to Ibrahim to utter threat to burn copies of the Bible with the term Allah.
At the same time, Gani should also explain:

• Whether he agrees with the Sepang police chief Mohd Yusoff Awang that Petaling Jaya Utara Umno deputy division chief Mohamad Azli Mohamed Saad would not be probed for sedition for his call to abolish vernacular schools;

• Why the AG’s Chambers decided on “No Further Action” in the case of the Federal Territories UMNO Youth threat to torch the DAP headquarters under Section 506 of the Penal Code for criminal intimidation and under Section 427 for causing mischief and whether he could reply to a query by a Malaysiakini reader: “AG, what if they threaten to torch Umno HQ?”

• Why there have been no outcome to previous and current sedition police reports made against Prime Minister Najib for his “crushed bodies, lives lost” speech at the UMNO General Assembly in 2010 and former Prime Minister Tun Dr. Mahathir for his seditious warning in the 13th General Election that I was contesting in Gelang Patah constituency to create a “racial confrontation” between the Malays and Chinese in Johore – despite the “probe within 24 hours” oath made publicly by the Home Minister, Datuk Seri Zahid Hamidi on any sedition report made on Sept. 22 last month?

• Why he had sanctioned the sedition blitzkrieg with 12 charged under the Sedition Act up to September this year, eight in 2013, and one each in 2009 and 2012; whether he had been given the “green light” for the sedition blitz by the Prime Minister who had promised in 2012 to repeal the Sedition Act as well as running contrary to Najib’s pledge to make Malaysia the world’s “best democracy” – attracting international censures including from the Office of the United Nations High Commissioner for Human Rights (OHCHR)?

In his 2015 Budget speech this evening, will Najib take note that his “moderation” pledge reiterated for the third time at the United Nations General Assembly last month had gone awry, and what he proposes to do to rescue his wasatiyyah (moderation) campaign of justice, balance and excellence from abysmal failure?

Would Najib be able to save his two most important initiatives on wasatiyyah, namely his 1Malaysia campaign and the Global Movement of Moderates (GMM), which are facing pathetic ends. The GMM has even come under the cross-hair not only of extremists but also the Attorney-General’s Chambers to the extent that it had to ask the media not to report the proceedings of the GMM forum on the “Future of Malaysia” with NGOs, because the GMM cannot ensure the freedom and liberty of the participants and protect them from the sedition “white terror” which had deluged Malaysia for over a month.

Yesterday, former Bar Council chairperson Ambiga Sreenivasan said that if she is investigated under the Sedition Act it might turn out to be a good thing because the truth would emerge.
She said if she is charged, she know she will be in good company.

Ambiga is right about the latter but I am not so sure about her former sentiment.

It would appear that one test today of whether one is a patriot is whether one is persecuted under the obnoxious Sedition Act, which is not being used against sedition but legitimate and patriotic criticism and dissent.

This is a sad sign of the times and reflection of the grave deterioration and degeneration of what Najib had promised to make Malaysia the “best democracy in the world”!

Najib: Rakyat's Well-Being Priority Under Budget 2015

KUALA LUMPUR, Oct 10 (Bernama) -- Budget 2015, unveiled by Prime Minister Datuk Seri Najib Tun Razak on Friday, continued to be business and investor-friendly as well as inclusive, taking into account the concerns of the rakyat by emphasising on the needs of the middle and lower income group.

Noteworthy among the proposals highlighted for businesses are the promotion of high quality investments, encouraging the establishment of principle hub by multinational companies, spurring creative industry, increasing capacity of high speed broadband and developing small and medium enterprises, as well as, developing innovation and commercialisation.

Taking the opportunity to speak directly to the rakyat, via live-telecast through mainstream television channels, Najib, who is also the Finance Minister also proposed many measures to ease the concern over rising cost of living.

These include increasing the amount of 1Malaysia People's Aid (BRIM), education aid, accelerating the private and public investments, widening the scope of items that would not be subjected to the Goods and Services Tax (GST) and other tax incentives.

Themed, "People Economy", it outlined seven main strategies namely strengthening economic growth; enhancing fiscal governance; developing human capital and entrepreneurship; advancing the Bumiputera agenda; upholding the role of women; developing national youth transformation programme; and prioritising the well being of the rakyat.

The premier said the main challenge in preparing the RM273.9 billion budget, whcih was an increase of RM9.8 billion compared to the previous budget, was to balance between policies that are populist and policies based on economic and financial imperatives.

Budget 2015 is the last budget in the 10th Malaysia Plan period (2011-2015). Najib, clad in a bright tangerine Baju Melayu, presented the 2015 Budget at the Dewan Rakyat, his sixth national budget since assuming leadership of the administration.

The prime minister was confident the country would achieve a strong economic growth of between 5.5 per cent and 6.0 per cent this year and 5.0 per cent to 6.0 per cent in 2015.

Fiscal deficit would continue to improve to 3.5 per cent this year and reduce further to 3.0 per cent by end 2015, he said.

Touching on the GST, Najib said its implementation was estimated to generate RM23.2 billion in revenue next year.

"However, as a caring government we have exempted several goods from GST amounting to RM3.8 billion," he said, adding that with the implementation of GST, the Sales and Services Tax (SST) would be abolished.

"This will result in revenue foregone of RM13.8 billion. This means that after deducting RM13.8 billion and RM3.8 billion from a revenue RM23.2 billion, the government will have a balance of RM5.6 billion," Najib said.

Out of this, he said RM4.9 billion would be channelled back to the rakyat through assistance programmes such as the increase in BR1M.

"Finally, net revenue collection from GST would only amount to RM690 million," he said.

Proving that the government was listening to the rakyat, Najib said consumers and targeted groups would not have to pay GST on the purchase of RON95 petrol, diesel and LPG.

Najib said in improving public finance position, the government was committed to implement subsidy rationalisation, particularly for petroleum.

This rationalisation was aimed at ensuring a more targeted subsidy, reduce leakages and smuggling.

Najib said in 1994, the government allocated RM588 million for various subsidies but the amount had swelled to RM40.5 billion in 2014.

To ensure a more targeted subsidy and taking into account the rakyat's awareness and readiness to subsidy rationalisation, the government would develop a new mechanism to provide petroleum subsidy.

"I will announce the new mechanism soon," he said.

Meanwhile, though faced with various obstacles and challenges, he said the Malaysian economy prevailed to be strong and resilient, registering a 6.3 per cent GDP growth in the first half of 2014, the highest among Asean countries.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) has risen 114 per cent from 884.45 points in January 2009 to 1,892.65 points in July 2014, while market capitalisation rose 162 per cent from RM667.87 billion to RM1,749.49 billion on Oct 7,2014.

Najib also said foreign direct investment, totalling RM38.7 billion, in 2013 was the highest realised to date.

On banking, the prime minister said the government would introduce a new shariah-compliant investment product next year, called the Investment Account Platform (IAP), with an initial start-up fund of RM150 million.

The IAP, which provide opportunities to investors in financing entrepreneurial activities, would also be a platform to attract investors and strengthen the Islamic financial market.

Najib also proposed deductions for expenses incurred in the issuance of sukuk based on Ijarah and Wakalah principles to be extended for another three years until 2018.

To promote the domestic shipping industry, the government would establish the Malaysia Protection and Indemnity Club under the Exim Bank to assist owners of cargo ships with gross tonnage not exceeding 300 tonnes.

The government would also enhance the special incentives packages provided under the economic corridors to include more areas that are less developed.

In promoting high-quality and focused investment, Najib announced that a more specialised incentive package would be offered for investment projects based on technology, innovation and knowledge, involving highly qualified and knowledgeable employees with high salaries.

He said the government would also provide incentives in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector.

For the commodity sector, Najib said the export duty exemption for crude palm oil would be extended until December 2014.

He said the government would also allocate RM41 million to provide incentives for new planting and replanting for oil palm smallholders.

Meanwhile, the Malaysian Rubber Board would allocate RM100 million to implement a regulatory price mechanism at the farm level to protect smallholders from losses incurred, particularly when the world market price falls below a minimum fixed price.

"MRB will also provide soft loans of RM6.4 million as working capital to 64 smallholder cooperatives to purchase rubber directly from 442,000 rubber smallholders nationwide," he said.

In his more than two-hour speech, Najib stressed that various strategies were carefully and systematically planned to develop the economy to reach the present level of success.

"Many people are not aware that the process to develop and prosper the nation has not been easy. It takes hard work, comprehensive plans, as well as, painful and unpopular decisions.

"However, all these have to be undertaken by a responsible and accountable government that always prioritises the interest of rakyat," he said.

"Many people are not aware that the process to develop and prosper the nation has not been easy. It takes hard work, comprehensive plans, as well as, painful and unpopular decisions.

"However, all these have to be undertaken by a responsible and accountable government that always prioritises the interest of rakyat," he said.

Najib Stresses Deficit Reduction Ahead Of Budget 2015

KUALA LUMPUR, Oct 9 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak has stressed the importance of continuing the government's deficit reduction measures to ensure the country achieves a balanced budget by 2020.

On the eve of unveiling the 2015 Budget in the Dewan Rakyat, he said the government was on track to meet its fiscal deficit targets which included reducing the deficit to 3.5 per cent by year-end and three per cent by end-2015.

"It is wrong to pass the burden of debt to the next generation. We must pass on a stronger economy with less debt.

"We must do what is right for Malaysia's economy, not what is popular. By doing so, we will ensure long-term prosperity for the people," he said in a statement.

Saying that the current subsidy levels were unsustainable, Najib, who is also Finance Minister, underscored his commitment to subsidy rationalisation, noting that fuel subsidies had increased from RM1.6 billion per year in 2002 to RM2 billion per month in 2014.

He added that Budget 2015 would be "pro-rakyat" and would include measures to ease concerns over the cost of living.

He also said the Budget would help enhance job opportunities, improve education and create more affordable housing.

Najib too, underlined the importance of the 1Malaysia People's Aid (BR1M) programme.

"BR1M will continue as it is part of our manifesto. It is part of our subsidy rationalisation. By switching from blanket subsidies to more targeted support, we are getting better value for money," he said.

For more information, please can contact bajet2015@treasury.gov.my. and visit www.treasury.gov.my to watch the Budget speech live, to download the Budget speech after it has been delivered, the Economic Report and other key documents.

Bajet 2015: Semoga 'rakyat didahulukan', kata warga kota

Budget 2015 Sets To Improve Fiscal Position, Improve Living Standards - Najib

KUALA LUMPUR, Aug 12 (Bernama) -- The 2015 Budget, scheduled to be tabled in Parliament in October, will continue to stimulate growth, and improve fiscal position and the people's standards of living, said Datuk Seri Najib Tun Razak.

The prime minister said the country needed a responsible budget that lived up to the people's expectations in the march towards attaining Vision 2020 and the developed nation status.

"Malaysia is on the dawn of a developed nation. Together, we are able to achieve the target. Let's continue with our efforts," he said in his 1Malaysia blog post entitled "Budget2015: Let's Continue Our Efforts".

In striving to ensure that the 2015 Budget caters to the people's needs, Najib asked the people to express their ideas, opinions and needs through specific social sites or his Facebook for his considerations.

"I welcome your suggestions. I'm very excited over the people's responds prior to #Budget2014 - the sentiments revolved on everything, from housing to culture," he said.

Najib, who is also finance minister, said although the economy continued to grow and many new jobs were created, the people were still affected by rising cost of living.

Prime Minister said the government always placed the people's interests as the main agenda and had made great strides in addressing their needs by formulating inclusive, balanced and responsible national budget.

"The government's main objectives, among others, include managing the cost of living and maintaining low inflation," he said.

On public transport, he said it was important to seek long-term solutions to address traffic woes in the capital and the surrounding areas.

"The Klang Valley Mass Rapid Transit (MRT) could alleviate the problem by extending the distance of public transport to 51 km," he said, adding that as every MRT train would have four coaches, up to 400,000 passengers could ply by MRT every day.

The prime minister said the government would extend the Light Rail Transit line by stretching the Kelana Jaya and Ampang route until Putra Heights.

In line with the objective of enhancing eco-friendly public transport, he said the Electrified Double Track Project from Ipoh to Padang Besar, Perlis would cater for commuters in the northern region.

On the Goods and Services Tax (GST) at six per cent set for April next year, he reiterated that it was meant to replace the Service and Sales Tax (SST) (at 16 per cent) and not impose another tax regime.

"We need a new and equitable tax system as only one out of 10 Malaysians are taxpayers.

"We also need to expand the revenue streams, continue to reduce the deficit and invest for the future. The GST allows us to achieve the aspirations," he said.

Najib said the government would also increase the people's gross income by reducing the spread of personal income tax by one to three as announced in the 2014 Budget and the measure meant that 300,000 people no longer have to pay income tax.

Apart from that, he said corporate tax and small and medium enterprises income tax would also be reduced by one per cent from the 2016 year of assessment while cooperative income tax would be slashed by one to two per cent from the 2015 year of assessment.

The RM1,200 1Malaysia People's Aid at RM1,200 per year will continue to be disbursed for the next five years, he added.

On affordable housing raised during online 2014 Budget discussions, Najib said RM1 billion had been allocated under the 1Malaysia People's Housing Project to build 80,000 houses priced 20 per cent below the market price in addition to injecting funds to provide 26,122 affordable housing units.

He said the government introduced the National Automotive Policy in the 2014 Budget which was aimed at reducing vehicle prices by between 20 and 30 per cent within five years.

LIVE: Najib unveils Budget 2014, announces GST

Prime Minister Najib Abdul Razak took two and a half hours to unveil the details of Budget 2014 today.

Clad in a bright orange 'baju Melayu', Najib - to the delight of Pakatan Rakyat MPs as they waved their orange alternative budget booklet - started to address Parliament at 4pm.

Malaysiakini brings you the salient points of the budget speech here as it unfolds.

You can also check out the updates on Twitter @malaysiakini and Facebook.com/malaysiakini.

In his speech, Najib takes potshots at Pakatan over allegations there were 40,000 Bangladeshis voting in the 13th general election.

"According to the 2010 Population and Housing Census, estimates for 2013 indicate that there are 18.6 million Malays and bumiputera (67.9% of total population) including Muslims and non-Muslims, Chinese, 6.6 million (24%) Indians, 2 million (7.2%), while there are 259,000 (0.9%) people of other ethnic groups. This means there are about 27.4 million Malaysian citizens.

"However, this does not include the 40,000 Bangladeshis who were
brought in as phantom voters in the recent 13th general election as alleged by the opposition. Till today no one has even seen them or their shadow. Enough of lies. Ask for forgiveness from Him."

The theme of Budget 2014 is 'Strengthening economic resilience, accelerating transformation and fulfilling promises'.

Budget 2014 in graphics
AT A GLANCE

Total budget: RM264.2 billion

Operation expenditure: RM217.7 billion
Development expenditure: RM46.5 billion
GDP growth

2014: 4.5% - 5.5%
2013: 4.5% - 5.5%
2012: 4.5% - 5.0%

Revenue

2014: RM224.1 bil
2013: RM220.1 bil
2012: RM206.2 bil

Deficit

2014: 3.5% of GDP
2013: 4.0%
2012: 4.5%
Domestic economic prospects

• Net foreign direct investment was higher at RM18.2 billion in the first half of 2013 compared with RM15.9 billion during the same period in 2012.

• International reserves remained strong at RM444.9 billion at Oct 14, sufficient to finance 9.7 months of retained imports and 3.9 times the short-term external debt.

• For entire 2013, domestic economy expected to expand 4.5% - 5%. Growth supported by private investment, increasing 16.2% to estimated RM165 billion.

• Private and public consumption expected to grow 7.4% and 7.3% respectively

• Domestic economy projected to grow at a stronger pace of 5% to 5.5%. Growth to be driven by private investment at 12.7%, and private consumption 6.2%.

• Exports of goods expected to grow 2.5% over improving external demand. On the supply side, construction sector expected to grow 9.6%, services sector at 5.7%.

• Unemployment rate estimated at 3.1%, inflation rate to remain low between 2% and 3%.

• Per capita income for 2014 expected to reach RM34,126. Plans to achieve the target per capita income of RM46,500 in and even "achieve developed nation status much earlier than 2020".

Goods and Services Tax

• Government to introduce Goods and Services Tax (GST) at 6% starting April 1, 2015. Sales and Services Tax to be abolished.

• Items to be exempted from GST - rice, sugar, salt, flour, cooking oil, dhal, chilli, herbs, salted fish, cincalok, budu, belacan, piped water, electricity (for first 200 for domestic use), government services, public transport (bus, LRT, ferry, toll) sales and purchase of property or rental of property.

• Implementation comes with a reduction in tax structure effective from 2015. Generally, those with family and earning RM4,000 and below need no longer pay income tax.

• After GST, a one-off cash payment of RM300 to be made to those now receiving BR1M help.

• GST monitoring committee to be chaired by Minister of Finance II Ahmad Husni Hanadzlah to ensure smooth implementation.

Tax incentives

• In tandem with GST, individual income tax rates to be reduced by one to three percentage points for all taxpayers.

• Chargeable income subject to maximum rate to be increased from exceeding RM100,000 to exceeding RM400,000.

• Current maximum tax rate at 26% to be reduced to 24%, 24.5% and 25%. These measures to be effective from 2015.

• Tax rebate of RM2,000 for those earning less than RM8,000

• To help the employer's burden of implementing of minimum wage scheme - RM900 in Peninsula Malaysia and RM800 in Sabah and Sarawak, the government will introduce extra tax incentives for whole of 2014. This is to help employers to top up salaries of their employees to the minimum level.

• Corporate tax rate cut by 1 percentage point from 25% to 24%, for SMEs reduction from 20% to 19% from year of assessment 2016.

• Cooperative tax rate cut by 1 to 2 percentage points from year of assessment 2015.

Projects and allocations

• Projects to be implemented include 316km West Coast Expressway from Banting to Taiping. and double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Bahru.

• National Entrepreneur Development Office to be established to plan and coordinate all entrepreneurship activities.

• RM1 billion investment in companies scoring high on Environmental, Social and Governance Index.

• RM265 mil to resolve electricity cuts in Sabah.

• Government to conduct audit on projects valued at more than RM100 million.

• 496 more CCTV at 25 areas. RM200 mil allocated for police to get more equipment (weapons, bulletproof vest, forensic vehicles, biometric equipments)

Education

• Education budget for 2014: RM54.6 billion or 21 percent of total budget.

• RM450 mil funds for school maintenance. Breakdown: RM100 mil for SK, and RM50 mil each for all the rest: SJK(C), SJK(T), Sekolah Mubaligh, Sekolah Asrama Penuh, MRSM, government-aided religious school and sekolah agama rakyat.

• Government to continue giving RM100 cash to all primary and secondary school students.

• Baucer Buku 1Malaysia for pre-U and tertiary students of RM250 to continue. RM325 mil to be allocated and it is estimated that this will help 1.3 million students nationwide.

• RM100 mil to improve education and training for Indians.

Tourism

2013 - RM25 mil tourist arrivals
2014 - Target: 28 mil tourist arrivals

2014 - Visit Malaysia Year
2015 - Year of Festivals

• Government to spend RM 1.2 bil to develop, promote and publicise tourism in 2013-2014.

• RM2 bil for Special Tourism Infrastructure Fund to finance building tourism infrastructure.

Air transport

• RM700 million to build new air traffic control and management system at KLIA. This is to replace the existing one in Subang.

• RM312 million to upgrade Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports, additional upgrade of terminals in Langkawi International Airport and Kuantan Airport.

• Services sector blueprint to be launched next year, the logistics sector master plan and national aviation policy to be formulated.

Public transport

• RM62 million for 'park and ride’ facilities at LRT, KTM Komuter and ERL stations.

• RM15.3 million for Centralised Taxi Service System to ensure efficient mobilisation of taxi services.

• RM28 million for building ‘last city terminals’, upgrading of bus stops and providing ‘drop-and-ride’ facilities. 

• Refurbishing electric trains at a cost of RM28 million to ensure frequency and efficiency of services.

High-speed broadband

• Second phase of the High-Speed Broadband (HSBB) project in collaboration with the private sector involving RM1.8 billion investment to expand coverage to major towns. Internet speed to be increased to 10 Mbps.

• RM1.5 bil to build 1,000 new telecommunications tower over three years. RM850 mil to build new undersea cable to improve internet in East Malaysia over 3 years.

Agriculture

• RM6 bil allocated to implement high value-added and commercially viable agriculture programmes.

• RM2.4 bil for agricultural subsidies and incentives for paddy and fish farming.

Subsidies reduction

• Sugar subsidy of 34 sen to be abolished tomorrow. Price to go up to RM2.84 per kg.

• Government to allocate RM47 bil for subsidies in 2013 and 53% or RM24.8 bil went to petrolem products that benefitted all, even the rich, the businessmen and foreigners.

• Najib cites the recent petrol price subsidy cut as an example of this structural changes to come for subsidies, which make up to a fifth of the total national budget. 

Retirement scheme

• To allocate RM210 mil for a private retirement scheme (PRS) to encourage young to start saving. Starting Jan 1, the government will top up RM500 into the account for those aged 20-30 years old who can save RM1,000.

• It is estimated that 420,000 youths may join this scheme to run for five years.

Increase of Real Property Gain Tax (RPGT)

• RPGT increased as follow:

        - 30% (first 3 years)

        - 20% (fourth year)

        - 15% (fifth year)

        - For foreigners: 30% for all five years

• Minimum property purchase price for foreigners to be doubled from RM500,000 to RM1 mil.

• Cheaper homes: Subsidy of RM15,000 to RM20,000 for private and public developers for low and medium cost homes, for sale to first home buyers.

BRIM 3.0

• Those earning household income of below RM3,000 to get RM650, an increase of RM150.

• RM450 for those households earning between RM3,000 and RM4,000.

• For single individuals earning below RM2,000, they get RM300 each.

• In total, RM4.6 billion will be handed out under BR1M 3.0.

Health

• Additional 6,400 nurses in government hospitals.

• RM3.3 bil for medication and medical equipment.

Don’t give us peanuts, Indians tell Najib

The PM must allocate sufficient funds in Budget 2014 to help wean Indian youths from crime and gangsterism, say several leaders

PETALING JAYA: Prime Minister Najib Tun Razak will be tabling the 2014 Budget on Oct 25. What is in store for the Malaysian Indian community has raised concerns among its leaders.

MIC Youth chief T Mohan hoped that Najib, who is also Finance Minister 1, would make sufficient allocations to fight crime.

“I believe it will be the right time for the premier to allocate funds to curb the escalating crime among Indian youth,” said Mohan.

Statistics from the police indicate that the Indians are leading the chart in crime activities.

Mohan strongly believes that the government has neglected the Indians and this could be one of the reasons why they are getting involved in gangsterism and criminal activities.

“MIC considers the claims by the police that nearly 29,000 Indians were active in secret societies as alarming and something needs to be done.

“Shooting or confining them by implementing new laws will not solve the problems,” said Mohan.

“Instead, the government must work hand in glove with Indian based political parties and NGOs, providing alternatives like creating job opportunities.

Thus, Budget 2014 budget should concentrate on a special allocation to Indians to combat crime.

“There is no point talking about gangsterism and crime among Indians when the government refuses to help them financially,” said Mohan.

Apart from crime prevention, special allocation should also be made for sports in Tamil schools and skills training programmes for less competent Indian students in secondary schools.

Creating job opportunities for unemployed Indians in all sectors within the government also would help the Indians to upgrade their lifestyle in future.

Sufficient loans needed

Meanwhile, a Pakatan Rakyat friendly NGO urged the government to provide micro credit financing for potential Indian entrepreneurs.

S Barathidasan, the secretary of MIPAS, said that the loan amount should at least be RM30,000 to RM50,000. It can facilitate Indians to venture into businesses.

“Giving RM6,000 under Tekun scheme is nothing but peanuts,” he said.

MIPAS also pointed out that Najib must fulfill his promises made in the Hindraf blueprint.

“The upcoming budget is a perfect avenue for the PM to deliver the six-point demand in a the MoU Umno signed with Hindraf before the 13th General Election,” added Mohan.

'Balanced budget after 2015'

The New Straits Times                              by RUPA DAMODARAN SUSTAINABILITY: Government will target subsidies to trim deficit, says prime minister KUALA LUMPUR: MALAYSIA is not only looking to trim its fiscal deficit but is  also balancing the books after 2015, said Prime Minister Datuk Seri Najib Razak yesterday. Last Friday, the government outlined its plan to reduce the deficit of the federal budget to four per cent next year from 4.5 per cent this year, progressing to three per cent by 2015. "We hope for a budget surplus but I don't want to give firm commitment yet," he said, during a recording of The CNBC Conversation programme here yesterday. The prime minister was replying to questions raised by host Martin Soong during the taping of the 30- minute programme which will air on CNBC at noon on Saturday. The recording is part of the CNBC Summit Malaysia yesterday, which included a panel discussion with Minister in the Prime Minister's Department Datuk Seri Idris Jala, Malayan Banking Bhd president and chief executive officer Datuk Seri Abdul Wahid Omar and Nestle (Malaysia) Bhd managing director Peter R. Vogt. Najib, who is also finance minister, said as a responsible government, his administration does not want to dish out more perks until the deficit was trimmed. He described 2011 as an exceptional year when tax revenue jumped by RM26 billion through tightening of loopholes and this prompted the government to give back to the people. Najib said there were still a lot of leakages in the system, which was not helping the government in its efforts to wean itself off from overdependence on national petroleum company Petronas. For example, foreign workers, both legal and illegal, and tourists were among those enjoying Malaysian subsidies. "The cash payment we decided on is to send the message that targeted subsidy will be only for households with RM3,000 a month." The 2013 Budget provides for another round of RM500 1Malaysia People's Aid (BR1M) to households earning less than RM3,000 a month. This comes after a previous one given under the 2012 Budget. The prime minister also stressed that Malaysians could not be over dependent on subsidies in the long run as it would impact government revenue. "With the Economic Transformation Programme in place, this has created more growth industries, which would give us a strong financial base later," he added. The ETP has also enabled the domestic economy to be the main engine of growth amidst the strong head wind of uncertainty coming from advanced economies. Strong exports would be a bonus for trade-dependent Malaysia, which enjoys a trade and current account surpluses. On the commodities front, Najib said while palm oil prices were satisfactory, he was concerned with the lot of smallholders following the dip in rubber prices to half of 2010's because of the drop in automobile sales in China. Malaysia is looking to Asean as well as East Asia, where trade arrangements with Japan and China will help boost exports as in the case of the trade pacts that were inked with Australia and New Zealand. On challenges to Malaysia, Najib said growth was necessary to make society more equitable. "If we get five to six per cent growth within the time frame... we can ensure fair, equitable distribution of wealth in the country and also fair distribution of income." Najib also touched on politics, saying that democracy was thriving in Malaysia and that the government considered it a fundamental right of the people to protest for reasonable concerns, such as the safety concerns surrounding the setting up of Lynas Corporation's plant in Kuantan. "Political transformation is part of my promise to the people that we are moving to a more mature, vibrant democracy in the country." Set as favourite Share Email This Comments (0) Subscribe to this comment's feed Write comment You must be logged in to post a comment. Please register if you do not have an account yet.

Tanya Najib: Middle-income group not sidelined in Budget 2013

KUALA LUMPUR, Oct 3 — The government has not sidelined the middle-income group in Budget 2013, said Prime Minister Datuk Seri Najib Razak.

He said various incentives were given out to assist this group, including a one percentage point income tax reduction for those in the RM2,500-RM50,000 income bracket.

“We also provide housing programmes for the middle-income group. We give them other facilities too that benefit them like the My First Home scheme.

“The middle-income group is not sidelined. We give them what we can afford to give,” he said in the ‘Ask Najib’ programme broadcast live by Astro Awani (Channel 501) tonight.

This programme enabled Malaysians from all walks of life to pose questions to the prime minister via Twitter, Facebook, Google and video-conferencing on Budget 2013, which was tabled by him on September 28.

To one of the questions, Najib said the huge allocation for administration costs involving the public sector was to motivate public servants to provide more efficient service delivery to the public.

He said the public must understand that the government was not only caring for the lot of 1.4 public servants but the welfare of their families as well.

To a question on the benefits from the Budget for the people of Sabah and Sarawak, Najib said the government provided a rather big allocation to balance the market price of basic goods in the two states.

“Through this special programme, we will at least ensure that the prices in Sabah and Sarawak are not much higher than the prices in the peninsula.

“In the annual budget, we also provide allocations for rural electricity and water supply facilities including to the longhouses,” he said.

Meanwhile, Najib said investors would have more confidence to do business in Malaysia when they saw a politically stable, peaceful and harmonious country.

“When they look at Malaysia, they will compare us with other countries. And when they like what they see about Malaysia...peaceful, harmonious, no violent street demonstrations… confidence in Malaysia certainly will be much higher.

“As a nation, we will benefit from that kind of perspective,” he said in reply to a question on whether the Budget and the country’s economy would be affected by the violent street demonstrations and chaos caused by irresponsible parties.

Commenting on the government’s efforts to fight crime, he hoped the motorcycle patrolling unit would be implemented as soon as possible to enhance security in housing areas and ensure public safety.

Najib said the government would allocate RM20 million to provide 1,000 motorcycles for the patrolling unit.

“I am very excited about this patrolling programme,” he said in the one-hour interactive programme. — Bernama

2013 Budget Takes Into Account Young People's Tastes, Says Najib

PUTRAJAYA, Oct 4 (Bernama) -- The 2013 Budget takes into account the tastes of the young generation through the Youth Communication Package in line with the current digital era, Prime Minister Datuk Seri Najib Tun Razak said.

He said the rational in giving the one-off RM200 rebate for purchase of 3G Smartphone for youths aged 21 to 30 was to show the government's appreciation for their contribution and to further enhance their capability.

"The Smartphone is also the in thing among the young people today in line with their improved lifestyle," he said in an Online 2013 Budget Dialogue which could be viewed live through YouTube.

He was responding to a question by Asyraf Adlan an entrepreneur from Bukit Jelutong, Shah Alam, who wanted to know the government's rationale in giving the RM200 rebate for the Smartphone purchase.

On the book voucher for Form Six and university students, Najib said the government felt it necessary to do so.

"It is useful because most books which the students need are very expensive and they have to share with their friends.

"So, we feel it is better to provide book vouchers so that they can buy the books," he added.

In the 2013 Budget, the 1Malaysia book voucher has been increased to RM250, from RM200 previously. It involves an allocation of RM325 million and will benefit 1.3 million students nationwide.

Responding to a question on a 10 per cent a year discount given to those who make early settlement of their National Higher Education Fund (PTPTN) loan, which some quarters say is unfair, Najib said the government could not offer everything.

"We introduce that incentive as a permanent measure to get the borrowers to repay their loans so that other students can also borrow to further their studies," he added.

Khairy: Our promises are realistic

Unlike Pakatan, the government’s Budget 2013 is grounded in reality and will not negatively impact the nation’s economy, says the Umno Youth chief.

KUALA LUMPUR: The difference between the government’s Budget 2013 and Pakatan’s budget is that the former is realistic while the latter is ‘plucked from the clouds’, said Khairy Jamaluddin said today.

Taking a swipe at the opposition pact in his budget speech in parliament today, the Umno Youth chief pointed to the concrete figures which he said Pakatan Rakyat lacked in its own budget.

“Take for example generating jobs. Pakatan Rakyat makes all sorts of promises, but they don’t mention how many jobs they intend to generate. Their budget is not empirical,” said Khairy, who is also Rembau MP.

“Ours, on the other hand, is thorough. We don’t make projections without looking at the economic impact. We expect that by 2020 there will be 3.3 million new jobs in the middle to high income range.”

He also criticised the “unrealistic” RM1,100 floor wage promised by Pakatan – a RM200 difference from the RM900 that the government had pledged.

“The World Bank has examined the minimum wage in Malaysia and found that it should not exceed RM900.

“Meanwhile, when the government introduced the RM900 wage, I met with employers and learned that it wasn’t only those below that wage who would be facing a salary increase.

“On the contrary, the employers will be increasing wages across the board,” he said.

BN looks at maintaining economy

Khairy said that Barisan Nasional made “realistic promises” based on discussion and studies to ensure that they would help all Malaysians without negatively impacting the nation’s economy.

“We have to understand, whatever we do, we cannot destroy the country. The promises we make will not lead to the closure of factories, bankruptcies or companies fleeing the country.

“We look at maintaining the economy. That is the difference between Barisan Nasional and Pakatan Rakyat,” he said.

Khairy also said that Budget 2013 emphasised economic structural change and “was not just about Bantuan Rakyat 1 Malaysia and free vouchers.”

He said that the cash incentives provided in the budget allowed the government to carry out the “rationalisation of subsidies” by identifying households that deserved the subsidies.

“When BR1M was carried out, we were able to identify and reveal those households that earned less than RM3,000.

“We can use that data to give subsidies such as petrol only to them, without including those who do not need the subsidies,” he said.

MIC hails Indian allocation in Budget

The party also says more than 200 Tamil schools have benefited from the RM100 million allocated in the previous Budget.

SHAH ALAM: MIC president G Palanivel today urged Indian entrepreneurs to expand their businesses through the special allocation of RM50 million for TEKUN under the 2013 Budget announced by Prime Minister Najib Tun Razak yesterday.

He said the allocation was an extension to the continuous measures taken by the government to help the Indian community.

“In the previous budget, RM30 million was allocated for TEKUN for Indian entrepreneurs and now it has been raised to RM50 million under the 2013 Budget.

“I highly encourage all aspiring Indian entrepreneurs to take this opportunity to apply and grow their businesses,” he told reporters after officiating the ‘Road To England’ football tournament which kick-started today at a Tamil school, here.

Under the 2013 Budget, RM350 million was allocated for TEKUN Financing for small to medium entrepreneurs, including RM50 million for the Indian Social Entrepreneurship Scheme.

Apart from that, RM50 million was allocated for 3,200 poor Indian students to train them in industrial skills and RM100 million for upgrading and development for Tamil schools nationwide.

Palanivel, who is a Minister in the Prime Minister’s Department, said more than 200 Tamil schools had already benefited from the RM100 million allocation announced for Tamil schools under the 2012 Budget.

As such, he said, only the remaining Tamil schools which did not seek any allocation would benefit from the 2013 Budget allocation. There are approximately 523 Tamil schools in the country.

Palanivel also expects to receive an allocation of RM1 billion for Tamil schools in 10 years’ time.