Prime Minister Datuk Seri Najib Tun Razak when tabling 2012 Budget in Parliament today.Pic: fotoBernamaKUALA
LUMPUR, Oct 7 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak
today unveiled the 2012 Budget, providing a gamut of incentives to
further strengthen the domestic economy, a RM6 billion special stimulus
package, perks to attract investments and boost the Islamic sukuk
market, banking, finance and hospitality industries, as well as
much-awaited support for small-and medium- scale enterprises.
Najib, who is also Finance Minister, also announced that Felda Global
Ventures Holdings will be listed by mid-next year to raise funds for the
land development agency to emerge as a global conglomerate as well as
income tax exemptions to accelerate development of the Kuala Lumpur
International Financial District (KLIFD).
"The listing will create another blue chip plantation company besides
attracting international investors to Bursa Malaysia," he said when
tabling 2012 Budget in Parliament today.
In clearly keeping the wheels well-oiled in Malaysia's economic
transformation process, Najib said 17 services sub-sectors will be
liberalised besides an allocation of RM2.5 billion under the
public-private partnership (PPP) facilitation fund with RM300 million
for Bumiputera entrepreneurs.
To accelerate development of the five regional corridors, the
government will allocate RM978 million including an agropolitan scheme
in Besut, Terengganu, and a palm oil industrial cluster project in Lahad
Datu, Sabah, and Samalaju water supply project in Sarawak.
In efforts to woo multinational corporations and establish treasury
management services, the government has proposed an income tax exemption
of 70 per cent for five years, witholding tax exemption on interest
payments on borrowings and stamp duty exemption on loans and service
agreements.
Najib said the 2012 Budget will cost RM232.8 billion, of which RM181.6
billion is for operating expenditure and RM51.2 billion for development.
Of the development expenditure, RM29.8 billion is provided for the
economic sector to support infrastructure needs, industry, agriculture
and rural development.
As for the KLIFD, Najib proposed a 100 per cent income tax exemtpion
for 10 years and stamp duty exemption on loans and service agreements
for KLIFD-status companies, an industrial building allowance and
accelerated capital allowance for KLIFD marquee-status companies and
income tax exemption of 70 per cent for five years for property
developers in the district.
Turning to sukuk (Islamic bond) market, which has emerged as a feather
in the cap for Malaysia's Islamic finance, the Prime Minister said a tax
deduction on expenses incurred for "sukuk wakala" will be given for a
three-year period from 2012 to encourage more sukuk issuances.
"The income tax exemption given for non-ringgit sukuk issuance and
transaction is extended for another three years until the year of
assessment 2014," he said.
He also said the I-VCAP, a subsidiary of Valuecap Sdn Bhd, will provide
RM200 million as seed money for shariah-compliant exchange traded funds
(ETF) which will see the fund provide a matching loan subject to a
maximum of RM20 million.
The prime minister also said the full exemption of import and excise
duties on hybrid and electric cars given to franchise holders will be
extended to end-2013.
Realising the importance of small and medium enterprises to the
country's economy, Najib said a RM2 billion shariah-compliant SME
Financing Fund will be established next year, which will be managed by
selected Islamic banks.
The government will finance two per cent of the profit rate.
To prevent entrepreneurs succumb to failure due to economic recession
and higher costs, he said the government will provide RM100 million for
the SME Revitalisation Fund.
In addition, he said, the goverment will also establish a RM10 million
SME Emergency Fund to help them affected by natural disasters so that
they can recover and restart their businesses quickly.
Najib said the franchise fees borne by local franchisees will be
allowed tax deduction in efforts to develop the local franchise industry
and Malaysian brands.
He said Pulau Langkawi will be redeveloped with the Langkawi Five Year
Tourism Development Master Plan to be launched with an allocation of
RM420 million to be used to restructure the Langkawi Development
Authority, set up a park rangers unit, upgrade museums, beaches and
small businesses as well as provide a more efficient transportation
system.
Hotel operators in Peninsular Malaysia investing in new four and
five-star hotels will be given pioneer status with 70 per cent income
tax exemption or 60 per cent investment tax allowance for five years.
In efforts not to jeopardise the ability of low-and middle-income
groups to buy houses, Najib said the real property gains tax (RPGT) will
be reviewed, whereby for properties held and disposed within two years,
the RPGT rate is 10 per cent and five per cent for properties held for
more than two years and up to five years.
"I am confident the revised RPGT rates are low and will not affect
genuine property owners and will curb speculative activities," he said.
He also announced a RM100 million allocation for creativity and
innovation of which RM30 million will be used to establish the Market
Validation Fund to be managed by the Malaysian Technology Development
Corporation together with the Malaysia Innovation Agency.
The Prime Minister said a Gross National Income of more than RM30
billion will be generated by 2020 from commercialisation of some 300
intellectual properties in the form of new products and technology from
universities by the private sector.
To enable SMEs to commercialise research products, the government will
establish a shariah-compliant Commercialisation Innovation Fund
totalling RM500 million with an attractive profit margin.
"Effective 2012, this fund will be available at selected Islamic banks
with the government financing two per cent of the profit rate", he said.
Bank Simpanan Nasional (BSN) will provide RM100 million for soft loans
with four per cent interest including stamp duty exemption to encourage
professionals such as lawyers, doctors and accountants to set up firms
in small towns as part of the government's Rural Transformation
Programme, he said.
Besides this, he said, the Rubber Industry Smallholders' Development
Authority (Risda) will implement new planting and rubber replanting
programmes with an allocation of RM140 million which will benefit 20,000
smallholders.
Najib also said the government will continue to implement rural
infrastructure projects with an allocation of RM500 million, which will
give opportunities for 29,000 Class "F" contractors.
To ease inflation and enhance the people's well-being, the Prime
Minister said RM1.1 billion will be set aside next year for the
development of agriculture in Terengganu, Sabah and Sarawak.
A RM300 million allocation will be provided to expand the scope of the
Commercial Agriculture Fund to include innovative agriculture projects, a
move which will increase the number and income of agropreneurs.
Other measures to ease rising costs and prices and lighten the people's
burden include increasing the number of Kedai Rakyat 1Malaysia (KR1M)
nationwide next year, offering 250 types of 1Malaysia products which are
up to 40 per cent cheaper than other goods in the market.
The government plans to open 85 KR1M units next year with an allocation of RM40 million.
He said 1Malaysia People's Housing (PR1MA), the sole agency to develop
and maintain affordable and quality houses, will develop several plots
of government-owned land around Sungai Besi and Sungai Buloh, while
identifying areas in the vicinity of mass rapid transit (MRT) and light
rail transit (LRT) areas.
He said next year, 7,700 houses will be built in Cyberjaya, Putra
Heights, Seremban, Damansara and Bukit Raja besides 1,880 houses built
in Putrajaya and Bandar Tun Razak this year.
"The government will also provide 100 per cent stamp duty exemption on loan instruments to buy houses," he said.
He said the government will continue its noble efforts of
rehabilitating abandoned housing schemes with an allocation of RM63
million to revive 1,270 abandoned houses besides RM40 million
apportioned for restoration and maintenance of public and private
low-cost housing.
To increase home ownership, Employees Provident Fund (EPF) withdrawals
for house purchases will be extended to expatriate working in Malaysia,
he said.
Permodalan Nasional Bhd together with selected financial institutions
will implement Skim Amanah Rakyat 1Malaysia or SARA 1Malaysia for
households with income below RM3,000 a month to increase their
disposable income and encourage savings.
This is expected to benefit 100,000 households, the prime minister said.
To develop the Bumiputera community, he said, the government will
allocate RM200 million for the development of Bumiputera entrepreneurs
and contractors to the Rural and Regional Development Ministry.
Najib said the government will set aside RM10 million for training
programmes to encourage female professionals to return to work.
He also said RM2.1 billion will be made available for micro financing
to entrepreneurs, particularly women, and of this, RM100 million each
will be provided for Malaysian Indian and Chinese entrepreneurs through a
special unit under Amanah Ikhtiar Malaysia (AIM).
The government has also established MyCreative Venture Capital with an
initial RM200 million fund to encourage creative ideas among Malaysians.
"We need to ask, with the stringent financial structure, will the ideas
of people like Bill Gates, the late Steve Jobs, Michael Dell, the
Wright brothers, Thomas Edison, be successful.
"Ideas worth billions of ringgit may have been wasted," he said in
announcing the fund which will remove constraints to financing creative
ideas.
The federal government's total revenue next year is expected to
increase by 1.9 per cent to RM186.9 billion from RM183.4 billion this
year, while the government's deficit in 2012 is set to improve to 4.7
per cent of the gross domestic product from 5.4 per cent this year.
KUALA LUMPUR, Oct 6 — An orthopaedic surgeon said it was impossible for Datuk Seri Anwar Ibrahim to engage in “vigorous activities” since he suffers from severe arthritis and nerve damage.
