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KUALA LUMPUR (Bloomberg) – Malaysia released its largest budget to help the virus-ravaged economy get back on track of rapid growth.
The government of Prime Minister Tan Sri Muhyiddin Yassin has allocated RM322.5 billion for total spending next year, which it hopes will help the economy recover with growth from 6.5% to 7.5%. The administration also proposed a cut in personal income taxes, provided monetary assistance and lowered costs for first-time home buyers.
Here’s a look at the biggest winners and losers.
Winners
Glove manufacturers
Malaysia’s Largest Rubber Glove Producers – Top Glove Corp Bhd
, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd – saved an extraordinary tax on their supernatural earnings. Instead, they will contribute a combined RM400,000 to cover some of the costs of a coronavirus vaccine and health kits.
Builders
Builders, including Gamuda Bhd and IJM Corp Bhd be to win. The government will continue to implement transportation infrastructure projects and will allocate RM15bil ringgit to finance the Pan Borneo Highway, the Gemas-Johor Bahru electrified double-track rail project and phase one of the Klang Valley double-track project.
The rapid transit system link from Johor Bahru to Woodlands, Singapore and the MRT3 in Klang Valley will also continue. The government will also continue the High Speed Rail Project with Singapore due to its multiplier effect on the economy.
Property
To further boost home ownership, the government will extend the full exemption from stamp duty on transfer and loan agreements for first-time home buyers until the end of December 2025. The government will also reserve RM1.2 billion for public housing projects.
Palm oil
Planters The government will allocate RM400,000 to pay interest on the debt of farmers under the state palm oil plantation agency Felda, as well as for development programs for them.
Losers
Smokers
Smokers, vapers and tobacco companies such as British American Tobacco Malaysia Bhd could be affected. The government will impose a special device tax of 10% for all types of electronic and non-electronic cigarettes, including vape, starting January 1.
Meanwhile, the liquid used in e-cigarettes will attract an excise duty at a rate of 40 sens per milliliter.
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