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KUALA LUMPUR: Malaysia has presented its biggest budget to help the virus-ravaged economy get back on track towards rapid growth, allocating RM322.5 billion in total spending next year, which it hopes will help the US $ 365 billion economy rebound with growth of 6.5 % -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., Hartalega Holdings Bhd., Supermax Corp. and Kossan Rubber Industries, were spared a windfall tax on their supernormal profits. Instead, they will contribute a total of 400 million ringgit to cover some of the costs of a coronavirus vaccine and health kits.
Builders
The builders, including Gamuda Bhd. And IJM Corp., will benefit. The government will go ahead in implementing transportation infrastructure projects and will allocate RM15 billion 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 homebuyers 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 million to pay off interest on farmers’ debt under the state palm oil plantation agency Felda, as well as for development programs for them.
Losers
Smokers
Smokers, vapers, and tobacco companies like British American Tobacco Malaysia Bhd. They may 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 sen / milliliter.
