On Friday 6th November 2020, Finance Minister Tengku Zafrul Aziz gave out the planned budget for the year 2021, which is a first for the Perikatan National government ever since they took up power in March this year.
According to sources, a total of RM 322.5 billion has been allocated for the year 2021 with RM7.8 billion more than what was worth from the 2020 budget.
RM236.5 billion is allocated for operational expenditures, RM 69 billion for development and RM 17 for Covid-19 funds.
Here are the list of all the allocated budgets for the year 2021 :
Operational
Emoluments – RM 84.5 billion
Debt Repayment – RM 39 billion
Services and Supply – RM 32.8 billion
Pensions – RM 27.7 billion
State Government – RM 7.7 billion
Subsidies – RM 18.7 billion
Others – RM 25.8 billion
Development
Economy – RM 39 billion
Social – RM 18.3 billion
Security – RM 7.7 billion
General Administration – RM 3.8 billion
Covid-19 fund – RM 17 billion
And for the top three budgets for year 2021 are:
· Welfare and citizens
· Business continuity
· Economic resilience
Civil Service
Increase allowance for 1900 volunteer firefighters from RM 6 to RM 8 an hour
One of payment for 40000 recipients of the Pingat Jasa Pahlawan Negara with RM 500 each
RM 600 for civil servants grade 56 and below
Retired civil servants and veterans without pension will be given RM 300 special aid by the government
Environment
RM 50 million for river cleaning
RM 40 million to increase enforcement and monitoring activities
RM 10 million for waste management projects in Terengganu and Johor
RM 400 million to preserve natural resource through TAHAP initiative
RM 20 million for the hiring of 500 former soldiers and police, also Orang Asli to patrol forests
Government to build an urban transformation center in Lembah Pantai with the help of private sector
Job Creation and Social Issues
RM 100 million for NGOs that is involved with job creation, addressing social issues and environmental protection
RM 2 billion to continue Green Technology Financing Scheme 3.0
Appointment of 100 new MACC officers
Sabah and Sarawak
RM 5.1 billion and RM 4.5 billion to improve infrastructure, health and education facilities in Sabah and Sarawak respectively.
Economic Corridors
RM 780 million for development projects in economic corridors for Johor, Kelantan, Kedah, Sarawak and Sabah
Extension of tax incentives for economic corridors until 2022
RM 150 million for the supply of raw water to Melaka
EPF to proceed with RM 50 million Kwasa Damansara development
Development
RM 15 million allocated for Transport Infrastructure projects including Pan Borneo Highway, Gemas-Johor Bahru project and Klang Valley Double Track Project
Continuation of projects including the Rapid Transit System between Johor Bahru and Singapore and the MRT3 in the Klang Valley
Government to proceed with High Speed Rail project, subject to discussions with Singapore
RM3.8 billion for infrastructure projects including the construction of bridges and roads in several states
Sin Tax
Freeze on new import license for cigarettes
Tightening of renewal of import licenses for cigarettes
Restriction of transhipment of cigarettes to selected ports only
Imposing of tax on the importation of cigarettes with drawback facilities for re-export
Barring of all transhipment and re-export by small boats
Imposing tax on cigarette and tobacco products in all duty-free islands
10% excise duty on e-cigarettes and non-electronic cigarettes, including vape
Digital Transformation
RM1 billion for Industrial Digital Transformation Scheme
RM150 million in grants for the digitalisation and automisation of small- and medium-sized enterprises (SMEs)
Nearly RM1.2 billion for microcredit schemes
RM10 billion for Syarikat Jaminan Pembiayaan Perniagaan Bhd
RM2.5 billion for G1 to G4 contractors for small and medium projects nationwide
MARA to provide RM50 million in funding scheme for Bumiputera contractors
Tourism
RM50 million for retraining programmes for 8,000 airline staff
500 jobs for Orang Asli and local communities to become tour guides in all national parks
RM50 million for the maintenance and restoration of tourism facilities nationwide
RM35 million for the Malaysia Healthcare Travel Council
Special RM1,000 grant for traders, taxi drivers, e-hailing drivers and tour guides in Sabah
Human Resource Development Fund levy exemptions for companies in the tourism sector and those still affected by Covid-19 for six months
Commodities
RM20 million for sustainable palm oil certification programmes
RM16 million for latex production incentives
Government to open a furniture industrial park to create jobs in Pagoh
Agriculture
RM50 million for organic agriculture project benefitting 1,000 communities
RM150 million for modernisation of fishermen vessels
RM60 million for modernisation programmes in the supply chain
RM100 million for impactful and high-value agriculture and livestock
Development of local products
RM150 million for training programmes and assistance for 100,000 entrepreneurs
RM150 million for the Shop Malaysia Online initiative
RM35 million to promote Malaysia-made products
Tax incentives for companies producing Covid-19 vaccines to invest in Malaysia
Science, Technology and Innovation
RM400 million for selected ministries and agencies to carry out research and development (R&D)
RM100 million for research into diseases, including vaccine development
Investments in primary sectors
RM1 billion to encourage investments in technology, including R&D for the electronic and aerospace industries, among others
RM500 million to support companies involved in advanced technology and innovation
Tax incentives for certain industries will be extended to 2022
RM1.4 billion to support the development of the domestic supply chain and increase the development of local products including medical devices
RM3.7 billion to extend several schemes for maritime and logistics development, sustainable development, tourism infrastructure and public transportation sectors
RM2 billion in targeted aid for SMEs
National defense
RM16 billion allocated to defence ministry
RM17 billion to home ministry
RM2.3 billion to maintain military assets
RM27 million to improve the country’s cybersecurity
RM500 million for the construction of 1,000 homes for families of military personnel
RM153 million for RELA
Transport
RM300 million to expand the My30 unlimited travel pass to Penang and Kuantan, Pahang
Government to introduce unlimited monthly travel passes at RM5 for students and the disabled. This includes train services in the Klang Valley as well as other parts of the country
Tax exemption for the purchase of locally assembled buses extended
Housing
tamp duty exemption for first homes up to RM500,000
RM1.2 billion for the provision of homes for low-income house buyers
RM500 million for 14,000 PPR units
RM315 million for 3,000 Rumah Mesra Rakyat
RM125 million to repair dilapidated low-cost homes
RM310 million for civil service homes
Government to work with selected financial institutions for a rent-to-own scheme involving 5,000 PR1MA homes
Education
RM50.4 billion for the education ministry accounting for 15.6% of the budget
RM420 million for the Supplementary Food Programme for students
RM725 million for dilapidated schools
RM45 million for special needs education
RM14.4 billion for the higher education ministry
RM50 million to improve facilities and infrastructure at public universities
RM50 million to upgrade internet connectivity in universities from 500Mbps to 10Gbps
RM6 billion for technical and vocational education and training (TVET)
RM300 million for loans for 24,000 students to pursue TVET programmes
RM29 million for TVET programmes under the Ministry of Higher Education
Digital connectivity
RM1.5 billion to ensure internet connectivity for the B40 group in the form of credit of RM180 per person. This will benefit eight million people
Telcos to provide RM1.5 billion worth of benefits such as free data
RM500 million for Jendela initiative, to boost internet connectivity in schools
RM7.4 billion for MCMC to increase broadband service in 2021 and 2022
GLCs to contribute RM150 million to the Cerdik fund for the purchase of laptops for 150,000 students in 500 schools
Youth and sports
RM1,000 per month for three months for employers who hire fresh graduates for apprenticeship programmes
One-off RM50 e-wallet credit for those aged between 18 to 20 years old. This will benefit 1.5 million youths
RM19 million for national health programmes to encourage healthier lifestyles
RM103 million to build, upgrade and maintain all sporting facilities nationwide
Tax exemption for sporting expenditure increased from RM2,500 to RM3,000
Rural development
RM2.7 billion for rural infrastructure projects. This includes:
RM1.3 billion for roads
RM632 million for water supply
RM250 million for electricity supply
RM355 million to build new houses and repair dilapidated houses
RM121 million to construct 27,000 lamp posts
Tax exemption and essentials goods
1% decrease in income tax for those earning between RM50,001 to RM70,000 per year
RM20 million to establish B40 community centers for children to be looked after when school session ends
RM170 million for early childhood education under KEMAS
Further tax exemption for companies who hire senior citizens
Tax exemption for disabled spouse increased from RM3,500 to RM5,000
RM158 million for social and development programmes for the Orang Asli community, including the establishment of 14 new kindergartens.
Extension of tax exemptions for companies who hire former convicts and drug addicts
RM50 million for repair and maintenance of houses of worship under local councils
RM100 million to empower the Indian community’s socio-economic development
RM177 million to the Chinese community for education facilities and new villages
RM30 million to establish childcare centers in government buildings especially hospitals
RM21 million to set up social support centers
RM95 million allocated to microcredit financing for women entrepreneurs
RM500 one-off payment to religious teachers and leaders (takmir), expected to benefit nearly 70,000 people
RM1.4 billion allocated to the Prime Minister’s Department for Islamic affairs
RM4.6 billion allocated to empower Bumiputera entrepreneurs
RM6.5 billion to provide access to quality education to Bumiputera institutions
RM1 billion allocated for reskilling and upskilling programmes
Government allocates RM2 billion to continue PenjanaKerjaya programme under Socso
Government to allocate RM1.5 billion to extend wage subsidy programmes for another three months, particularly in the tourism sector
RM3.7 billion for Skim Jaminan Penjanaan Pekerjaan (JanaKerja) to create jobs and improve skills
RM400 million to abolish Felda settlers’ interest debts
Fishermen’s allowance to increase from RM250 to RM300 a month
RM200 million allocated for distribution of essential goods
EPF contribution for employees reduced from 11% to 9% for 12 months beginning January 2021
RM24 billion for Socso’s employment injury scheme. Delivery riders will also be included in this scheme
RM3,000 tax exemptions for contributors to private retirement schemes
EPF to allow contributors to withdraw from Account 2 to purchase insurance
Government to allow contributors to withdraw RM500 a month from their EPF Account 1 for 12 months from January 2021
RM150 million allocated to extend Socso’s job search allowance for three months
Covid-19
The Covid-10 funds has been raised to RM 65 billion
RM1 billion to curb Covid-19 in the following ways:
RM475 million for equipment and supplies for the health ministry
RM318 million for frontliners’ PPEs and hand sanitisers
RM150 million for the National Disaster Management Agency
RM50 million to purchase equipment, laboratory supplies and medicine in university hospitals
One-off payments of RM500 to frontliners
Public health
RM24 million for mental health programmes
Tax exemption of up to RM1,000 for medical treatment expenses involving vaccination
Tax exemption for treatment of serious diseases increased from RM5,000 to RM8,000
Tax exemption for health screenings from RM500 to RM1,000
Tax exemption for medical treatment, special needs and care for parents increased from RM5,000 to RM8,000
MySalam and Perlindungan Tenang voucher programme for the B40 to be expanded.
RM90 million for pneumococcal immunisation programme for children.
Aid for OKU increased from RM250 to RM300 monthly
Aid for OKU carers, senior citizens and chronically ill patients from RM350 to RM500 monthly
Incentive allowance for disabled workers increased from RM400 to RM450 monthly
In total, RM2.2 billion allocated for monthly welfare aid, which will benefit over 400,000 people
Bantuan Sara Hidup
To be renamed Bantuan Prihatin Rakyat, with RM6 billion allocated to benefit 8.1 million people
Households earning less than RM2,500 will receive RM1,200 to RM1,800, depending on the number of children they have
Households earning between RM2,501 to RM4,000 will receive between RM800 to RM1,200, depending on the number of children they have
Households earning between RM4,001 to RM5,000 will receive between RM500 to RM750, depending on the number of children they have
Single individuals earning RM2,500 and below will receive RM350. Age limit for this is also lowered to 21 years
This sums up the National Budget of Malaysia for the year 2021. This budget will impact most either positively or negatively depending on the status of the individuals.
By Areez Jufri | 17 November 2020