Friday, October 23, 2009

The Malaysian Budget 2010

Based on the new 1Malaysia theme, the focus of Budget 2010 will be on the well-being of the people, driving the country towards high-income economy and a holistic and sustainable development.

Quote from theStar:

* Government to make it easier for skilled/qualified people to get permanent residence status. Visa to be granted for family within 14 days.
* CSR Fund of RM100mil to be set up to carry out social programmes.
* Tax breaks for registration of patents and copyrights.
* Big scale factory outlets to be set up to boost tourism besides having major events like KL Grand Prix Fest, National Water Festival, Malaysia International Golf Exhibition and Rain Forest Eco-Challenges
* Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012. Civil servants can apply for computer loans up to a maximum of RM5,000 from the govt once in every 5 years. - which means I get cheaper monthly internet fees?
* RM6bil for agriculture sector for irrigation of paddy fields, fish production, fruit farming, livestock farming infrastructure, training
* RM2bil subsidy for farmers and fishermen including subsidies for fertilisers, incentives for padi yields and allowances for fishermen
* RM9bil to finance infrastructure projects including road and bridges projects and rail, sea ports and airports facilities
* RM1.5bil fund to promote green technology by providing soft loans to companies that supply and use green technology. - this is a good move, we need more greeeeeeeeeen.
* RM200mil Creative Industry Fund to finance film, drama, music productions, animation, advertisements through Bank Simpanan Nasional
* RM30bil to be allocated to enhance primary and secondary school education nationwide. - enhance in what form?
* Rewards for students who excel in studies:
- 30 National Scholarships for the creme de la creme of students, strictly based on merit
- Conversion of PTPTN loans to scholarships for students who graduate with 1st class honours degree, beginning from 2010,
- Offer of netbook package, including free broadband service, to university students for RM50 per month for 2 years.
* The Permata programme, which emphasises on early childcare and education, including the gifted child programme, to get RM100mil
* Insurance industry to be improved to meet market demand.
* Govt to clamp down on the abuses committed by Ah Longs by enforcing Anti-Money Laundering and Anti Terrorism Financing Act 2001. Moneylenders Act 1951 to be also reviewed. - great. See how the clever Ah Longs operate next time.
* Allow 100% foreign equity participation in corporate finance and financial planning companies compared with the present requirement of at least 30% local shareholding.
* To ensure rapid development of financial services, the existing tax incentives to be extended to 2015.
* Among steps to combat corruption is to set up 14 Special Corruption Sessions Courts and 4 Special Corruption Appeal High Courts. - yeah right, as if the body who's monitoring the officers/workers not corrupted.
* Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.
* To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010. - err.... RM50 and RM25? LOL...
* To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad. - people will need to register the correct amount of their income then..... what if the work have no pay slip?
* All ministries and govt departments are required to provide day care and education centres for children of civil servants. - moms, now you're happy?
* The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
* Police force to get RM1bil to improve its services in govt's efforts to reduce crime. Major measures include to increase police presence, including mobile police stations in 50 crime hotspots. - rather, they need more people to join the force.
* To promote house ownership, Govt will launch a scheme that enables EPF contributors to utilise current and future savings in Account 2.
* Employees' EPF contribution to be increased to 11% again, on a voluntary basis, effective immediately. However, from Jan 1, 2011 employees' EPF contribution will revert to 11%.
* Personal relief for EPF and life insurance schemes to be increased to RM7,000.
Source: Budget 2010: "1Malaysia, Together We Prosper."

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