4 PM: Prime Minister Datuk Seri Najib Razak is unveiling the 2016 Budget at Parliament. The budget is expected to have something for everyone — the middle-class, the bottom 40 per cent of household incomes and the rural folk. However, it would not be too generous, given the big drop in government revenue due to sharply lower oil and commodities prices, and the slowdown in global trade and economy, including in Asian powerhouse China.
– PM says the Economy expected to grow between 4.5-5.5pct this year compared to 3.1pct global projection
– Poverty rate reduced to 0.6 pct in 2014 from 3.8pct in ‘09, poverty almost at zero pct
– Unemployment down to 2.9pct, 1.8 million jobs created
– Five million people in rural areas now have access to electricity, clean water
– Revenue to grow 1.4pc to RM225.7bil on higher tax revenue in 2016; GST collection up RM39bil from RM27bil in 2015
– National revenue would be reduced by RM21b without GST, had the government remained with just the Sales & Services Tax
– Without added tax revenue, the government would have to borrow to pay civil servants’ salary, national credit rating would deteriorate, and borrowing cost would increase.
– No GST for more essential goods, including controlled medicine for cancer, diabetes, high-blood pressure.
– Pre-paid telco users to get rebates to commensurate with GST paid, credited from Jan 1 to Dec 31 2016
– RM900 million proposed for Jalan Tun Razak traffic dispersal project to reduce Kuala Lumpur congestion.
– In 2016, federal government revenue collection estimated at RM225.7 billion, up RM3.2 billion over 2015.
– Income tax for those earning between RM600k-RM1 million to be raised from 25pct to 26 pct
– For those with an income above RM1 million, the tax rate with be increased to 28% from 25%.
– E-Visa to be implemented by mid-2016 to facilitate tourist arrivals.
– The government will develop the 108,000 hectare Malaysian Vision Valley, which will sprawl from Nilai to Port Dickson with an investment of RM5billion in 2016
– The government will develop the Cyber City Centre in Cyberjaya, with an investment of RM11 billion over a period of 5 years
– The 1,300 hectare Aeropolis KLIA will be developed, and is expected to attract RM7 billion in investment.
– Khazanah to invest RM6.7 billion in 9 domestic projects in health, education, tourism, software and communication infrastructure.
– Construction of MRT2 Sungai Buloh-Serdang-Putrajaya costing RM28b to begin in second quarter of 2016, completed by 2022
– The MCMC to allocate RM1.2b to increase Internet speed in rural areas from 5Mbps to 20Mbps.
– Fiscal deficit expected to decline from 6.7% to 3.2% in 2015.
– To provide clean water supply, RM877 million earmarked to build treatment plants.
– RM100 school aid for households with income below RM3k to continue, benefiting 3.5 million students.
– Bumiputera empowerment a national agenda, and will encompass the development of the Bumiputera communities in Sabah & Sarawak as well.
– The toll-free Pan Borneo Highway is to be completed by 2021, and is estimated to cost RM16.6b.
– Tekun will allocate a total of RM600m; RM500m for Bumi entrepreneurs, and another RM100m for 10,000 Indian business owners.
– The government will build 175,000 units of PR1MA homes, sold 20 per cent below market price with RM1.6 billion allocation.
– A total of 100,000 PPA1M houses will be built by 2018, priced between RM90,000-RM300,000.
– A total of 22,300 condominium units and 9,800 terrace houses will be built under the PPR programme with an RM863 million allocation.
– RM200 million allocated for first time affordable house owners under new scheme.
– A total of 5,000 PR1MA and PPA1M homes to be built at 10 locations near LRT and Monorail stations.
– To reduce crime rate, a total of RM155m will be allocated to build two District Police headquarters in Lawas & Kota Kinabalu, while another 10 district headquartes and another 5 police stations are under construction.
– Starting pay for civil servants to be fixed at RM1,200, affecting 60,000 people.
– Minimum pension is to be fixed at RM950 monthly, involving 50,000 retirees with at least 25 years’ of service.
– RM523 million proposed to develop Esscom armed forces camp in Felda Sahabat, Lahad Datu.
– RM17.3 billion allocated to Defence Ministry, armed forces will be equipped with latest technology.
– RM60 million proposed to implement national flood forecasting and warning programme, develop National Earthquake and Tsunami Sub-Centre in Sabah.
– Number of GST-registered companies approaches 400,000 with submission compliance at more than 90%.
– RM730 million allocation for flood-mitigation projects nationwide.
– RM200 million earmarked for First House Deposit Financing Scheme to assist first-time house buyers to pay deposit.
– BR1M for households with income of RM3,000 and below to increase from RM950 to RM1000.
– Tax relief for individual taxpayer whose spouse has no income increased to RM4,000 from RM3,000.
– Tax relief for each child below 18 years old increased to RM2,000 from RM1,000 from assessment year 2016.
– RM500 special assistance to all civil servants and 700,000 pensioners to get special payment RM250 in January 2016.
– Tax relief increased to RM8,000 for each child above 18, including disabled child, studying at local or foreign institutions of higher learning from assessment year 2016.
– For the first time, tax relief for children who care for parents, total tax relief of RM1,500 for the mother, RM1,500 for the father.