Saturday, 26 October 2013

Budget 2014

Strengthening Economic Resilience, Accelerating Transformation and Fulfilling Promises

• The domestic economy is projected to grow at a stronger pace of between 5.0 per cent to 5.5 per cent.

• The unemployment rate is estimated at 3.1 per cent while the inflation rate will remain low at between 2 per cent and 3 per cent.

• Goods exports are expected to grow 2.5 per cent due to improving external demand while on the supply side, the construction sector is expected to grow 9.6 per cent.

• The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37 per cent over six years.

• It is even possible that Malaysia will achieve developed nation status much earlier than 2020.

• The 2014 Budget allocates a total of RM264.2 billion to implement programmes and projects.

• Of this amount, RM217.7 billion is for operating expenditure and RM46.5 billion for development expenditure.

• In 2014, the Federal government revenue collection is estimated at RM224.1 billion, an increase of RM4 billion from 2013.

• The Federal government’s fiscal deficit will further decline from 4 per cent of GDP in 2013 to 3.5 per cent in 2014.

• Private investment is expected to increase further to RM189 billion or 17.9 per cent of GDP, particularly in oil and gas, textile industry, transport equipment and real estate development.

• Public investment is estimated to reach RM106 billion.

• The Government allocates RM1.6 billion for development in the five regional corridors.

• Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.

• Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports to be upgraded with RM312 million allocation.

• Internet speed to be increased to 10 Mbps.

• To increase Internet coverage in rural areas, 1,000 telecommunications transmission towers to be built over next 3 years, with a RM1.5 billion investment.

• To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within 3 years, at a cost of RM850 million.

• Environmental, Social and Governance Index (ESG) to be introduced.

• Government targets 5,000 young entrepreneurs to be trained yearly.

• RM50 million to reduce graduate unemployment under Graduate Entrepreneurship Fund to be managed by SME Bank.

• The Fund will provide soft loans of up to RM500,000 at interest rate of 4 per cent.

• RM120 million for an integrated package to increase innovation and productivity of SMEs.

• Difference in minimum wages paid by employers for the period of Jan 1, 2014 to Dec 31, 2014 to be given further tax deduction.

• To conduct audit on projects valued at more than RM100 million.

• Monthly Tax Deduction as Final Tax, effective from 2014 assessment year.

• Sales tax and service tax to be abolished, to be replaced by Goods and Services Tax (GST) effective April 1, 2015 fixed at 6 per cent.

• Corporate income tax rate to be reduced by 1 percentage point from 25 per cent to 24 per cent.

• Individual income tax rates to be reduced by one to three percentage points for all tax payers.

• Chargeable income subject to maximum rate to be increased from exceeding RM100,000 to exceeding RM400,000.

• Current maximum tax rate at 26 per cent to be reduced to 24 per cent, 24.5 per cent and 25 per cent.

• Training grant of RM100 million to be provided to businesses that send employees for GST training in 2013 and 2014.

• Bumiputera equity holdings and property ownership to be increased through Skim Jejak Jaya Bumiputera, Skim Amanah Saham Bumiputera 2 and strengthening of Bumiputera real estate institutions.

• Real Property Gains Tax increased to 30 per cent for properties disposed of within holding period of up to three years.

• Minimum price of property that can be purchased by foreigners increased from RM500,000 to RM1 million.

• 223,000 units of affordable houses to be built by government and private sector in 2014.

• RM331 million allocation to continue price uniformity programme and subsidies including transport costs in Sabah and Sarawak.

• RM30 million to open 60 Kedai Rakyat 1Malaysia (KR1M) to help reduce prices of daily necessities.

• Special tax relief of RM2,000 for tax payers with monthly income of up to RM8,000 received in 2013. - theborneopost

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