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Malaysian Budget 2011

Posted by PabloPabla 1 comments

This is a highlight of the important points on Malaysian Budget 2011 as presented by the Prime Minister of Malaysia Datuk Seri Najib bin Tun Razak. Please refresh this page for updates on the Malaysian Budget 2011. as sourced from the Star.

  • Several PPP projects identified under the 10MP will be implemented in 2011 through private investment of RM12.5bn
  • PPP project: Construction of highways such as the Ampang-Cheras-Pandan Elevated Highway
  • PPP project: Construction of a 300-megawatt Combined-Cycle Gas Power Plant in Kimanis, Sabah
  • PPP project: Development of International Islamic University Malaysia Teaching Hospital in Kuantan; Women + Children’s Hospital
  • Another PPP project identified is the Academic Medical Centre. This project involves private investment of RM2 billion
  • Greater KL MRT to be implemented from 2011. When completed, public transport utilisation rate is expected to rise to at least 40%
  • Another major project is the development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres
  • A new landmark, Warisan Merdeka, is expected to be completed in 2020. It will include a 100-storey tower, the tallest in Malaysia
  • The Government will implement bold measures to revitalise the domestic capital market;
  • Efforts will be taken to strengthen Malaysia’s position as a premier Islamic capital market
  • The Govt will provide Entrepreneurship Enhancement Training Programme to train 500 technopreneurs and attract more angel investors
  • The Malaysian Technology Development Corporation will be provided a startup fund amounting to RM100m to provide soft loans
  • To revitalise capital market activities, the Govt will launch a Private Pension Fund in 2011
  • Existing income tax relief of up to RM6k for employees contributions to EPF will extend to Private Pension Fund contributions
  • A sum of RM857 million is allocated for local E&E companies to compete at the international level
  • The Govt will allocate RM146 million to support the oil, gas and energy industry
  • The Govt is committed to develop green technology to ensure sustainable development
  • Pioneer Status, Investment Tax Allowance for energy generation from renewable sources + energy efficiency activities extended til 31-12-2015
  • To further encourage ownership of hybrid cars, import duty and excise duty exemption will be extended until 31 December 2011
  • Tax exemption on income from trading of Certified Emission Reductions certificate to extend until year of assessment 2012.
  • The Govt will implement the Programme on Blending of Biofuels with Petroleum Diesel (B5 Programme) in June 2011
  • The Government allocates RM3.8bn in 2011 to increase productivity and generate higher returns in the agriculture sector
  • Infrastructure facilities to be allocated RM85 million to facilitate construction of hotels and resorts in remote areas
  • RM3 billion eco-nature resort Nexus Karambunai, Sabah, to commence 2011
  • To support the tourism industry, the Government will allocate RM100 million
  • The Govt proposes that import duty on approximately 300 goods preferred by tourists and locals, at 5% to 30% be abolished.
  • In efforts to propel the palm oil and related products industry, several measures will be implemented
  • Measures include encouraging replanting activity to replace aged trees with high quality new clones through RM297 million
  • RM127m to be allocated to support domestic oleo derivatives companies plus RM23.3m to expand downstream palm oil industries
  • Multimedia Development Corridor programme is allocated RM119 million. Focus is on creating an innovative digital economy
  • Import duty and sales tax exemption on broadband equipment are also extended for two years until 2012
  • The Government proposes that sales tax be exempted on all types of mobile phones
  • Corridor and regional development will be accelerated. The Government allocates RM850m for infrastructure support
  • For Iskandar Malaysia, a sum of RM339 million is allocated. The Northern Corridor Economic Region is allocated RM133 million. East Coast Economic Region is allocated RM178 million for projects. For Sarawak Corridor of Renewable Energy, RM93 million is allocated for facilities
  • A sum of RM411 million is allocated in 2011 for R&D&C activities
  • For 2011, a sum of RM71 million is allocated for Special Innovation Unit UNIK
  • A sum of RM200m is allocated to purchase creative products such as high quality locally-produced films, dramas and documentaries
  • The Government proposes that the rate of service tax be increased from 5% to 6% (Ouch!!)
  • RM29.3bn allocated for Ministry of Education, RM10.2bn for Ministry of Higher Education + RM627m for Ministry of Human Resource
  • Government will establish a Talent Corporation under the Prime Minister’s Office in early 2011
  • RM6.4 billion is allocated for development expenditure to build and upgrade schools, hostels, facilities and equipment
  • RM213 million is allocated to reward high-performance schools
  • Government will increase pre-school enrolment rate to a targeted 72% by end-2011 through an additional 1,700 classes
  • The Government will also strengthen the curriculum and appoint 800 pre-school graduate teachers
  • RM250m allocated for development expenditure to schools: religious, Chinese-type, Tamil national, missionary, Government-assisted
  • RM576m allocated in the form of scholarships for those wishing to further their studies
  • RM213m allocated to enhance proficiency in Bahasa Malaysia, strengthen the English Language
  • RM20m allocated to increase PhD qualified academic staff to 75% in research unis plus to 60% in other higher learning institutions
  • RM60m allocated to further intensify the Industrial Skill Enhancement Programme in State Skills Development Training Centres
  • Government will also allocate RM50m to Multimedia Development Corporation to train graduates in ICT
  • RM474m provided to enhance productivity and skills of non-graduates
  • 1Malaysia Training Programme will commence in January 2011 with an allocation of RM500m
  • RM200m allocated to conduct part-time training in the evenings and weekends in selected training centres nationwide
  • RM200m from the Human Resource Development Fund to be used by companies to fund specific training programmes for their employees
  • Government will enforce basic minimum wages for security guards, to between RM500 and RM700 a month depending on location
  • RM30m allocated to introduce the Single Mother Skill Incubator Programme and the Prime Entrepreneur and Women Activist
  • Government will provide 40 1Malaysia TASKA to assist women to obtain quality childcare and early education for their children
  • Government will allow flexibility to self-determine fully-paid maternity leave, not exceeding 90 days from the current 60 days
  • For sports development and management, a sum of RM365m is allocated to the Ministry of Youth and Sports
  • To develop football, the Govt will establish a Football Academy in Pahang with RM20m to produce quality football players
  • In 2011, the Government will allocate RM1.2 billion to the Ministry of Women, Family and Community Development.
  • Government will launch assistance programme to benefit 80,000 disabled individuals with an allocation of RM218 million

Seriously, do we have so much money to allocate? Let’s continue with the Budget 2011 Malaysia:-

  • Government will launch assistance programme to benefit 80,000 disabled individuals with an allocation of RM218 million
  • Government will extend tax relief of up to RM5,000 to help parents with expenses such as daycare, caretakers & other daily needs (I wonder if this includes wages for maids?)
  • First-time house buyers will be given stamp duty exemption of 50% on instruments of transfer on a house price not exceeding RM350k
  • RM6.9bn allocated to implement basic infrastructure such as water and electricity supply as well as rural roads
  • RM2.1bn allocated to build and upgrade rural roads in Sabah and Sarawak
  • Build and upgrade rural roads in Sabah and Sarawak with an allocation of RM2.1 billion and RM696 million in Peninsular Malaysia
  • RM974m allocated as price subsidy for paddy, fertilisers + paddy seeds. RM230m for production incentives, increasing padi yield
  • Govt to establish a 1Malaysia Smart Consumer portal to help the rakyat keep abreast with price movements of retail goods.
  • Effective January 2011, the monthly allowance of Imam will be increased from RM450 to RM750
  • The monthly allowance for KAFA teachers will be increased to RM800, an increase from RM500, starting Jan 2011
  • RM100m allocated to implement various programmes, including resolving Orang Asli land rights and border settlement issues
  • Toll rates in four highways owned by PLUS Expressway Berhad will not be raised for the next five years, effective immediately
  • RM15.2bn allocated to build new hospitals, increase the number of doctors, nurses, obtain supplies of medicines and equipment
  • Since 2009, 51 1Malaysia Clinics are in operation. The Government will provide an additional 25 1Malaysia Clinics
  • RM350m allocated to implement various programmes to combat crime, including burglary, motorcycle and car thefts
  • RM70m allocated for programs with select NGOs to help Govt strengthen family institution and address social ills eg baby dumping
  • RM1.9bn allocated to environmental preservation, including implementing the River of Life Programme and KL greening
  • To assist children, particularly low-income, excel academically, the 1MDB will provide multi-vitamins for primary school pupils
  • 1MDB will provide RM20m to the 1Malaysia Youth Fund. This fund will be utilised to instil the 1Malaysia spirit
  • The Govt agrees to abolish the Competency Level Assessment/PTK and replace with a more suitable evaluation system by June 2011
  • Civil servant burden in coping with schooling expenses to be reduced by providing a Special Financial Assistance of RM500
  • RM212 billion allocated for Budget2011, which is 2.8% higher than the allocation for 2010
  • RM45.6 billion will be allocated for Development Expenditure, RM15.5 billion for the social sector
  • Government revenue collection is estimated to increase 2.3% to RM165.8 billion in 2011, up from RM162.1 billion in 2010
  • The deficit for 2011 is expected to further decline to 5.4% of GDP, compared with 5.6% in 2010

Sounds like a boring budget for the average income earner. No reduction in personal tax. Neither is there a reduction in company tax. Minimal reliefs given to cushion rising cost of living.

How will you be impacted by Budget 2011?

Filed in Society 1 comments
Oct 10, 2011
8:32 am
#1 philomena :

iwas disappointed RPGT is only 10%.Should be 30%n50% for 2nd housse and 3rd house sellers.CURB SPECULATION.Give rqakyat a chance to own one house each.Housing is an essential basic need.,not a stock market commodity to buy n sell.Not a RICH MAN’s play arena.GIVE EVERY CITIZEN A CHANCE TO OWN ONE DECENT HOUSE. STOP SPECULATION

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