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Tuesday, January 18, 2022

Budget 2022 highlights

KUALA LUMPUR: Following are the highlights of Budget 2022 tabled in Dewan Rakyat today by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Themed ‘Keluarga Malaysia, Makmur Sejahtera’, Budget 2022 is anchored on three key pillars namely Strengthening Recovery, Building Resilience and Driving Reforms.

Budget 2022 will be the largest budget to-date, with an allocation of RM332.1 billion.

Government to introduce Bantuan Keluarga Malaysia (BKM) which will provide aid totalling RM2,000 to households with monthly income below RM2,500 with three or more children.

BKM: Additional RM500 to single mothers or fathers who have dependents and a monthly income of RM5,000.BKM: Additional RM300 to be given to families with senior citizens.

Government to provide RM25 million to Yayasan Keluarga Malaysia to lead efforts to protect the welfare, education and future of children who have lost their parents due to Covid-19.

Health Ministry to get RM32.4 billion for operating and development expenditures.Goverment plans to provide individual tax relief, company tax deduction on costs of Covid-19 vaccine booster shots.Government plans to expand excise duties imposed on sweetened drinks and on liquid or gel products containig nicotine.Government agrees to extend the contract of over 10,000 medical, dental and pharmacy officers for a maximum of four years after completing their compulsory service period.-

The KSWP minimum contribution tax reduction period will be extended to nine per cent from 11 per cent until June 2022, involving an estimated value of RM2 billion

Sales tax exemption of 100 per cent will be extended for Completely Knocked Down (CKD) passenger vehicles and 50 per cent on Completely Built Up (CBUs) vehicles, including MPVs and SUVs for six months until June 30, 2022

The government provides guarantees of up to RM2 billion to banks through the Housing Credit Guarantee Scheme to provide gig workers, small entrepreneurs and farmers access to financing to puchase houses

A financing package worth RM40 billion is provided under the Semarak Niaga Keluarga Malaysia Programme

The government to provide Microcredit financing worth RM1.8 billion

Loans up to RM10,000 at zero-per cent interest, as well as 12-month moratorium to be offered under the Informal and Micro Financing Scheme

BSN and Agrobank will offer micro loans of up to RM75,000 at zero- per cent interest, with a moratorium facility of up to six months

The government will continue the Cooperative Movement Economic Transformation Programme (TRANSFER) with an allocation of RM10 million to restore the affected cooperative activities

RM30 million will be provided for the Cooperative Economic Recovery Intervention Financing Programme

The government is allocating RM20 million to support the expansion of the I-TEKAD programme

A total of RM80 million is allocated through matching grants for the Malaysia Co-investment Fund and an additional RM100 million is allocated for investments by BPMB to further support alternative financing

Funding facilities worth RM2.1 billion through equity and quasi-equity investments will be introduced to help companies facing gearing or leverage problems.

BPMB to offer RESET Scheme and BNM will provide a Business Recapitalisation Fund worth RM1 billion

A total of RM14.2 billion of funds to be made available to SMEs

BNM’s special fund, especially the Targeted Relief and Recovery Facility, has been increased by RM2 billion

Viable companies listed on Bursa Malaysia affected by the COVID-19 pandemic will receive an injection of additional funds through a government-owned Special Purpose Vehicle in the form of equity instruments or other related instruments

Khazanah Nasional will be mandated to assist the government in providing the infrastructure to manage a fund totalling at least RM3 billion

Credit Guarantee Corporation Malaysia Bhd to be enhanced through guarantees for scheduled and restructured financing with an additional guarantee limit of RM10 billion

The government plans to extend the tax deduction for the cost of renovation and upgrading of premises up to RM300,000 until Dec 31, 2021

Additional tax deduction of up to RM50,000 for companies registered under [email protected] on the rental expenses of employee accommodation premises extended for another year

A ‘Business Travellers Center’ will be provided in Johor for short-term business visitors from Singapore at a cost of RM10 million

Deferment of income tax installment payment for MSMEs for six months until June 30, 2022

All businesses are allowed to amend the estimated income tax payable in the 11th month before Oct 31, 2022

RM25 million is allocated to explore high-impact investments and export markets through the Trade and Investment Mission

A special strategic investment fund of up to RM2 billion is provided to attract strategic foreign investment among multinational companies

A total of RM80 million will be provided through MITI to train 20,000 employees who support industry clusters such as MRO in Subang, E&E in Kulim and chemicals in Gebeng

RM50 million is provided through the state skills development centre to improve TVET skills

A matching grant of RM100 million is provided for Bumiputera SMEs to explore business opportunities in the aerospace field

RM25 million is allocated to Halal Development Corporation to produce more halal MSMEs

RM30 million will be provided to implement the Innovation Hub: The Fourth Industrial Revolution

RM20 million is allocated to the Cradle Fund to intensify efforts to rehabilitate and build the resilience of startup economies

RM45 million is allocated to encourage technological transformation towards the Fourth Industrial Revolution

A collective fund of RM500 million is allocated through the GLC Network initiative: Empowering MSMEs to assist entrepreneurs through advisory services and financial support

At least RM30 billion will be allocated for capital expenditure and investment next year

The government will issue Sukuk Kelestarian in ringgit of up to RM10 billion to be channelled to eligible social or environmentally friendly projects

The government will continue with the implementation of national infrastructure development projects worth RM3.5 billion, including the construction of the Pan Borneo Highway and Central Spine Road.

An initial fund of RM200 million is allocated through the creation of the Third Infrastructure Facilitation Fund to further boost high-impact infrastructure development activities in collaboration with the public and private sectors.

The government intends to introduce the Fiscal Responsibility Act to improve governance, accountability and transparency in the country’s fiscal management.

The government is conducting a Public Expenditure Review in collaboration with the World Bank to ensure the efficiency and effectiveness of public spending without compromising the public delivery system.Contract stamp duty rate increased to 0.15 per cent and RM200 stamp duty limit per contract note abolished, while listed stock trading brokerage activities are no longer subject to service taxIncome tax imposed on Malaysian residents on income derived from foreign sources and received in the country from Jan 1, 2022Sales tax levy to be imposed on low-value goods from abroad sold by online merchants and sent to consumers in Malaysia via air courier servicesGovernment plans to introduce a special one-off tax, a “prosperous tax”, on high-income companiesService tax is levied on e-commerce platforms except for food and beverages delivery and logisticsTax identification numbers will be implemented from 2022 to broaden the income tax baseThe government will publish the Tax Expenditure Statement in an effort to improve fiscal discipline and transparency, as well as complement the Medium-Term Revenue Strategy programme, as well as the tax incentive study that is being undertaken

RM690 million for development projects in five economic corridors.

RM20 million for each state to focus on food security, tourism and environmental conservation projects.Sabah and Sarawak will respectively be receiving RM5.2 billion and RM4.6 billion in development allocation.

RM700 million to ensure digital connectivity in 47 industrial areas and 630 schools, especially in rural areas.The Malaysian Communications and Multimedia Commission will transform 600 Keluarga Malaysia digital economic centres into one-stop centres to guide micro-entrepreneurs.

Incentive of RM200 to Community Development Assistant Grade 19 and Welfare Assistant Grade U11 and U14 directly involved in providing care for senior citizens, PwDs and mental patients.

Cash Award in lieu of Leave (GCR) will be increased to 160 days from the current 150 daysGovernment to allow early redemption of GCR for up to 50 per cent or 80 days.

Special financial assistance of RM700 to 1.3 million government employees of Grade 56 and below and RM350 for government pensioners.-Bernama

James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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