[ad_1]
As the country prepares to face the current Covid-19 pandemic, all eyes will be on how the 2021 Budget unfolds.
The Minister of Finance, Datuk Seri Tengku Zafrul Abdul Aziz, now presents the budget, with the theme ‘Stand firm, let’s win together‘(Stand United, We Shall Prevail), at the Dewan Rakyat.
The 2021 budget is the largest budget in Malaysia’s history, totaling RM322.5 billion compared to RM297 billion for the 2020 budget. Sabah and Sarawak will receive an allocation of RM5.1 billion and RM4.5 billion respectively for development expenses.
Read about Budget 2021 highlights as they appear here with our live updates below.
- Sabah and Sarawak will receive a development spending allocation of RM5.1 billion and RM4.5 billion respectively. The provisions include the construction and improvement of water, electricity and road infrastructure, as well as health and education facilities.
- The total spending for 2021 is the largest in Malaysia’s history, totaling RM322.5 billion. The government plans to allocate RM 236.5 billion for administrative expenses; 69 billion ringgit for development expenses; and RM17 billion under the Covid-19 Fund. Meanwhile, RM2 billion has been allocated for contingency savings. Taking estimates into account, the 2021 fiscal deficit is projected at 5.4 percent of GDP.
- Government retirees and non-retired veterans will receive Special Financial Assistance of RM300 each.
- One-time grant of RM500 each for 40,000 retired police officers awarded to Pingat Jasa Pahlawan Negara.
- RM50 million to maintain and improve tourism facilities across the country.
- 50 million ringgit for the training and relocation of 8,000 airline workers in Malaysia.
- 500 million ringgit to build 14,000 PPR units; RM 315 million for Rumah Mesra Rakyat units; 125 million ringgit for the maintenance of low and medium cost housing; 310 million ringgit for the civil servant housing program.
- 725 million ringgit for the improvement of the infrastructure of 50 dilapidated schools, 45 million ringgit to strengthen special education.
- The provision of milk under the Food Supplement Program increased to every school day compared to twice a week.
- The Ministry of Education gets the highest allocation at RM50.4 billion or 15.6 percent of total public spending.
- MCMC will allocate RM7.4 billion for 2021 and 2022 to expand the broadband network.
- RM500 million to implement the National Digital Network initiative to ensure connectivity for 430 schools across the country.
- Ringgit 75 million for the eBelia program with a one-time payment of Ringgit 50 to be credited to e-wallet accounts for people aged 18-20.
- 103 million ringgit to build, upgrade and maintain sports facilities across the country.
- The lifestyle tax allowance increased to RM3,000 with an additional RM500 for sports related expenses.
- 55 million ringgit for the development of hockey, rugby, badminton, cycling and female athletes, including 15 million ringgit for e-sports.
- Ringgit 15 million for CENDANA to implement arts and culture programs benefiting more than 5,000 arts enthusiasts and production equipment.
- Ringgit 170 million for JKM’s early childhood education programs, including the management and improvement of nurseries and kindergartens.
- The tax relief limit for disabled couples increased to RM 5,000.
- 158 million ringgit for the welfare of Orang Asli, including social assistance programs.
- The grant for Rukun Tetangga increased to RM6,000 with an allocation of RM50 million.
- The government will issue the nation’s first Sustainability Bond for environmental and social purposes in 2021.
- Ringgit 10 million for cervical cancer screenings and mammograms for women at high risk of breast cancer.
- Ringgit 21 million to form local social support centers to address domestic violence.
- A special tax at a rate of 10 percent ad valorem will be imposed on all electronic and non-electronic cigarettes, including vape, beginning in January 2021. Liquids from electronic cigarettes will be subject to excise duty at a rate of 40 sen per milliliter.
- RM30 million to provide childcare in government buildings, upgrade support system for working and frontline mothers.
- Ringgit 6.5 billion for access to education in Bumiputera institutions such as MARA and UiTM, including digitization of TVET learning.
- The education fee tax relief was expanded to cover course fees and encourage people to improve and explore new fields.
- 30 million ringgit for Perhebat for skills and business training to benefit 12,000 ATM veterans.
- RM100 million to MDEC to facilitate the transition of existing talent to meet the needs of the ICT industry.
- RM150 million for the KPT-PACE program offering RM3,000 coupons to new graduates for professional courses.
- 100 million ringgit for HRDF to implement training and job creation in cooperation with the private sector.
- Formation of the National Employment Council to coordinate initiatives for the creation of job opportunities, improvement and training.
- Allocation of RM 3.7 billion under Janakerja to create 500,000 new jobs.
- 400 million ringgit to dispose of the interest on the FELDA settlers’ loan, a new income development program.
- 1.7 billion ringgit in subsidies and incentives for farmers and fishermen, and the cost of living subsidy for fishermen was raised to 300 ringgit.
- The rubber productivity incentive was doubled to RM 300 million to stabilize the incomes of 150,000 small farmers.
- RM200 million for the distribution of essential goods, LPG and Community Drumming with expansion to 34 new areas.
- BPR will benefit 8.1 million people with an allocation of RM6.5 billion compared to 4.3 million recipients and RM5 billion allocated in BSH.
- Households with monthly income below RM 2,500 with at least one child to receive RM 1,200 under the BPR.
- Support for Sara Hidup support package replaced by Aid Prihatin Rakyat with better rate and income categories
- EPF allows withdrawal from Account 2 for the purchase of takaful life insurance and protection products and for critical illness.
- The government will provide about RM28 billion specifically for grants, assistance and incentives.
- RM500 can be withdrawn monthly from EPF 1 account up to RM6,000 within 12 months.
- The allowance for disabled workers increased to RM 450.
- Assistance for the elderly, care for disabled patients and chronically ill bedridden raised to 500 RM.
- Assistance to disabled people unable to work increased from RM 250 to RM 300.
- The minimum contribution to the EPF from employees is reduced to nine percent as of January 2021.
- MySalam coverage was expanded to cover the cost of medical devices such as cardiac stents or prostheses
- The tax allowance increased to RM8,000 for parental medical, special needs and care expenses.
- The scope of the tax break was expanded for medical expenses that encompass vaccines such as pneumococcal, influenza, and COVID-19.
- COVID-19 fund raised to RM65 billion to cover additional assistance under the KITA PRIHATIN package
- One-time allocation of RM500 for front-line members of the Ministry of Health.
- The government pledged to obtain the COVID-19 vaccine, among others, through the COVAX program.
- The RM1 bill will be allocated in 2021 to contain the third wave of Covid-19, in addition to the RM1.8 bill allocated this year.
- Budget 2021 framed based on three key objectives, the well-being of people, business continuity and economic resilience.
- The government’s priority is to protect the people and ensure continued economic growth.
- Finance Minister Tengku Zafrul begins presenting the 2021 budget at Dewan Rakyat.
[ad_2]
