Here is the summary for budget 2012, which is certainly a foretaste of the goodies that we will receive as the general election looms next year. The stock market is not so bright and an upcoming recession really gives the incentive for the ruling government to give out more good news.
We will abolish payments for primary and secondary education, making these free for the first time in our history
RM1bn will be provided through a special fund for the construction, improvement and maintenance of schools.
RM50.2bn will be allocated to the education sector so that it can continue to develop talented, creative and innovative people.
To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mln will be established.
The Govt has allocated RM100mln promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions.
Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year.
The real property gains tax will be reviewed so it doesn’t jeopardise the ability of low- and middle-income groups to buy homes. (Kris: Another attempt to boost the sagging property bubble in Malaysia?)
The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination.
To promote tourism the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mln.
Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013.
A RM2bn shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012.
FELDA settlers are expected to receive a windfall, and the amount will be announced before listing.
FELDA GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate.
To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mln for Shariah-compliant ETFs.
Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years. (As the economy weakens, expect more sukuk issuance from the government to solicit more money)
RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers.
A special programme will be introduced for 175,000 army personnel who are not eligible for pensions.
Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters & 500 doctoral scholarships.
The Government will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants’ contribution.
600,000 Government pensioners will benefit from an additional annual pension increment of 2%.
For the Orang Asli affected by the landslides at Sungai Ruil, RM20 mln is provided for their relocation to new homes.
RM90mln will be provided to the Orang Asli for basic necessities, including the expansion of the clean water supply project.
To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas.
The Government will provide RM400mln to upgrade the water supply infrastructure in selected FELDA areas.
The Government will expand the programme to supply clean water to the rural community in Sabah by RM50mln.
RM5bn will be given to develop rural infrastructure, including RM1.8bn to the Rural Road Programme & Village-Link Road Project.
Budget introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment.
To encourage private sector human capital development incentives including a double deduction on scholarships will be offered.
The Government will expedite tax exemption approvals for educational institutions and all places of worship.
SARA 1Malaysia will benefit 100,000 households with income below RM3,000 per month.
Hospital Kuala Lumpur – the oldest in Malaysia – will be upgraded to be the country’s premier hospital.
Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched.
Healthcare will be allocated RM15bn operating expenditure and RM1.8bn development expenditure.
The Government will establish the Special Housing Fund for Fishermen to build and refurbish houses.
The Government will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses.
The Government will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA.
The My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000. (This will solely depend on the banks discretion although there is a direction from the government. Not sure what is the maximum income allowed for a person to apply this loan. If the ceiling is not raised, I don't think the banks will want to loan out RM400K for a person that only has a gross income of RM3,000. (The person still need to eat after all)
500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people.
In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bn will be continued.”
The National Agro-Food Policy 2011-2020 will be launched and RM1.1bn allocated for the development of the agriculture sector. ( I think this is the correct move, we need to go back to agriculture to reduce imports and control the food prices)
The Government is mindful of the plight of the rakyat due to rising food prices and will take measures to address this.
Civil servants will be given an additional bonus of half-month salary and pensioners RM500.
Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning.
One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided. (Free money!! Not sure how is this going to be implemented!?. I think a tax rebate will be easier :P)
A Flood Mitigation Plan will be implemented in Perlis, Perak and Johor to help 4 million rakyat residing in flood-prone areas.
To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced.
Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics.
RM15mln will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target.
The Government will establish MyCreative Venture Capital with an initial fund of RM200mln.
To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide. (Good!)
A training allocation of RM10mln will be provided for women to develop leadership and managerial skills.
To assist the homeless the Government established a social assistance centre known as Anjung Singgah.
The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid.
To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases.
TERAJU will coordinate and drive the transformation and strengthen Bumiputera’s participation in business.
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