15 October, 2010

Follow the Tabling of the 2011 Budget Live


As many of you are aware, my office has recently joined Twitter to interact with Malaysians and provide regular updates on government policies and development. Today, @PMOMalaysia will be live-tweeting as I table the 2011 Budget in Parliament. You can follow the tweets at http://twitter.com/PMOMalaysia.

You can also follow the highlights of the Budget here in my blog post, which will be updated regularly during the session.

SOROTAN BAJET NEGARA 2011

With the theme “Transformation Towards a Developed and High-Income Nation”, the 2011 Budget amounting RM212 billion will centre on the following key strategies:

First     : Reinvigorating Private Investment;

Second : Intensifying Human Capital Development;

Third     : Enhancing Quality of Life of the Rakyat; and

Fourth  : Strengthening Public Service Delivery

Reinvigorating Private Investment

1. Intensifying Public-Private Partnership (PPP) Projects.

a) Several PPP projects identified under the 10MP will be implemented in 2011 through private investment of RM12.5 billion.

b) A PPP Project identified is the Academic Medical Centre involving private investment of RM2 billion.

2. Strategic high-impact projects such as the Mass Rapid Transit (MRT) in Greater KL (Klang Valley) will be implemented beginning 2011, with an estimated private investment of RM40 billion.

3. Revitalising capital market. Among these:

a) Government-Linked Investment Companies (GLICs) will divest their shareholdings in major companies listed on Bursa Malaysia.

b) GLICs will be allowed to increase investment in overseas markets.

c) Bursa Malaysia will launch sukuk and retail bonds.

d) The Securities Commission will offer 3 new stock brokering licences to local, foreign and joint venture companies.

4. To strengthen leadership in Islamic capital market, Bursa Malaysia will develop an international board to enable the listing of foreign securities including syariah-compliant products.

5. Venture capital, especially high technology sectors.

a) the Government will provide Entrepreneurship Enhancement Training programme to train 500 new technopreneurs.

b) Start-up fund amounting to RM100 million to provide soft loans.

6. A syariah-compliant Bumiputera Property Trust Scheme Skim will be launched under the the Bumiputera Property Trust Foundation, valued at RM1 billion.

7. A Private Pension Fund will be launched in 2011 to benefit private sector employees and the self-employed.

8. An allocation of RM857 million will be set for local companies investing in high-value activities in the Electric & Electronic industry (E&E).

9. Oil, gas and energy industry:

a) An allocation of RM146 million to develop the industry, in downstream activities.

b) Petronas will implement a regasification project with an investment of RM3 bilion in Melaka, which will be operational in 2012.

10. Advancing green technology including:

a) Extending Pioneer status and Investment Tax Allowance for the generation of energy from renewable sources and energy efficiency activities until 31 December 2015.

b) 100% import duty and sales tax exemption on hybrid cars.

11. Invigorating agricultural sector including:

a) Allocating RM252 million to develop large-scale integrated Aquaculture Zones in Sabah and Sarawak.

b) RM235 million allocation to enhance paddy productivity.

c) Encouraging farmers to participate in high-value agriculture activities, with RM135 million allocated for basic infrastructure.

d) RM80 million allocated to foster partnership between small-scale fruit and vegetable farmers with anchor companies.

e) Building an International Centre for the Crops of the Future.

12. Energising tourism industry, which includes:

a) Allocating RM80 million for infrastructure facilities to attract tourists to remote areas.

b) Constructing several shaded pedestrian walkways in the KLCC-Bukit Bintang vicinity.

c) Abolishing 5% – 30% import duty on 300 goods preferred by tourists and locals.

13. Revitalisng palm oil and related industries:

a) Encouraging replanting activity with high quality palm oil clones.

b) Allocating RM127 million to support domestic oleo derivatives and RM23 million for downstream palm oil industries.

14. Creating an innovative digital economy.

a) Implementing a MY Creative Content programme with an allocation of RM119 million.

b) Extending the investment allowance period for last mile broadband service providers, and exemption of import duty and sales tax on broadband equipment to 2012.

c) Exemption of sales tax on all types of mobile phones.

15. The business services industry will be developed to meet the increasing demand for repair and maintenance of aircraft and helicopters, with an allocation of RM91 million.

16. Corridor and regional development:

a) RM339 million allocated for the Iskandar Development Region.

b) RM133 million for the Northern Corridor Economic Region (NCER) and RM178 million for the East Coast Economic Region.

c) RM93 million for the Sarawak Corridor of Renewable Energy (SCORE) and RM110 million for the Sabah Development Corridor.

17. Research, development and commercialisation (R&D&C) activity will be intensified with an allocation of RM411 million.

18. A new Insolvency Act will introduce a provision relating to relief mechanism for companies and individuals facing financial difficulties, including reviewing the current minimum bankruptcy limit of RM30,000.

19. An allocation of RM200 million to acquire high quality locally-produced content from the creative industry covering animation, advertising, films and others.

20. Increasing the rate of service tax to 6%, including paid television broadcast services.

21. Reinforcing the nation’s financial position by strengthening the revenue collection system.

Intensifying Human Capital Development

1. Increasing the number of talented and quality workforce by establishing a Talent Corporation in early 2011.

2. Revamping the national education system, including:

a) Allocating RM6.4 billion to construct and upgrade schools, hostels, facilities and equipment, a well as uphold the status of the teaching profession.

b) Allocating RM213 million as reward to high-performance schools and as remuneration to Principles, head Teachers and Excellent Teachers.

c) Providing an additional 1,700 classes, strengthening the curriculum and appointing 800 graduate teachers for pre-schools.

d) Allocating RM111 million for the PERMATA programme.

e) Providing allocation of RM250 milion as development expenditure for religious schools, Chinese-type schools, Tamil schools, missionary schools and Government-assisted schools nationwide.

f) Providing assistance per capita to praimary and secondary rakyat religious schools through an allocation of RM95 million.

g) Scholarships worth RM576 million provided to teachers to further their study and enhance their skills.

h) Allocated RM213 million to enhance proficiency in Bahasa Malaysia, strengthen the English language, and streamline the Standard Curriculum for Primary Schools, including recruiting native-speakers from English-speaking countries.

3. Strengthening institutions of higher education such as:

a) Increasing the percentage of PhD qualified academic staff to 75% in research universities and 60% in other public institutions of higher learning.

b) Improving opportunities for promotion of lecturers in public institutions of higher learning to the highest grade of Staff III, II and I as well as conferred Premier Professors.

4. Enhancing the skills of graduates including:

a) Intensifying Industrial Skill Enhancement Programme in State Skills Development Training Centres for engineering graduates and technical employees.

b) Allocation of RM50 million to train ICT graduates.

c) Allocation of RM200 million for a variety of programmes to develop the competency and employability of graduates in other fields.

5. A provision of RM474 million to enhance productivity and skills of non-graduates.

6. Implementing a 1Malaysia Training Programme to enhance knowledge through upskilling and reskilling, with an allocation of RM500 million.

7. Enhancing productivity of Employees which include:

a) Establishing the National Wage Consultation Council as the main platform for wage determination and the introduction of a minimum wage plan beginning January 2011.

b) A gradual increase of levy by sector on all foreign worker intake, as well as imposing mandatory ruling for employers to procure health insurance for their foreign workers.

8. Women:

a) Allocated RM30 million to encourage participation of women in entrepreneurship.

b) Implementing a pioneer Small Office Home Office programme for disabled women for 3 months.

c) Rebranding 40 1Malaysia TASKA for women to obtain quality childcare and early childhood education for their children.

d) Provide flexibility for female civil servants to self-determine fully-paid maternity leave up to 90 days, subject to the current total of 300 days.

9. Sports development and management will receive an allocation of RM365 million and RM20 million allocated to establish a Football Academy.

Enhancing Quality of Life of the Rakyat

1. The less fortunate will be looked after with an allocation of RM1.2 billion, which includes:

a) RM166 milion for welfare programmes for senior citizens.

b) RM121 million for assistance programmes to benefit 97,000 children.

c) RM218 million for assistance programmes to benefit 80,000 disabled individuals.

d) 100% sales tax exemption on the purchase of one national vehicle for disabled individuals.

e) Construction of an intervention centre for the homeless by providing employment opportunities, housing facilities and counselling.

2. The electricity bill rebate programme will be continued for those with monthly consumption of below RM20.

3. Extending tax relief on medical expenses for parents to a maximum of RM5,000.

4. Housing facilities, including:

a) A provision of RM568 million to build homes under Projek Bantuan Perumahan Bandar, Program Perumahan Rakyat Bandar and Projek Bantuan Sewa Rumah.

b) Skim Pembiayaan Perumahan Kos Rendah will be provided for estate workers through Bank Simpanan Nasional.

c) Introducing Skim Rumah Pertamaku with the Government guarantee on the 10% downpayment for first-time house buyers on property below RM220,000.

d) Exemption of 50% stamp duty for first-time house buyers on instruments of transfer on a house price not exceeding RM350,000.

5. For the rural population, a sum of RM6.9 billion is provided to implement basic infrastructure development, including:

a) Building and upgrading rural roads in Sabah and Sarawak at RM2.1 billion dan Peninsula Malaysia at RM696 million.

b) Providing water and electricity supply with an allocation of RM1.5 billion in Sabah, RM1.2 billion in Sarawak and RM556 million in Peninsula Malaysia.

c) Housing assistance programme consisting of 12,000 units for the poor and hardcore poor in rural areas with a sum of RM300 million.

d) Providing a Unit Khas Bergerak by the National Registration Department to register the citizenship of the rakyat in remote areas.

6. Allocation of RM974 million for paddy subsidies and RM230 million for incentives to increase paddy production and yield. A sum of RM170 million is provided as incentive to increase fish landing.

7. Consumers

a) Allocating RM200 million for the Distribution of Essential Goods Programme to standardise prices of goods.

b) Establishing a “1Malaysia Smart Consumer” interactive portal for the rakyat to track price movement of goods in almost 7,000 business premises nationwide.

c) Introducing the Retail Shop Transformation Programme, Automotive Workshop and Community Market projects.

8. Contiuing the implementation of PIA and PIAS projects with an allocation of RM500 million.

9. The contribution of community leaders are recognised by:

a) Increasing allowances for Chairpersons of JKKK and JKKP, Tok Batin dan Chairpersons of JKKK Orang Asli, and Chairpersons of JK Kampung Baru to RM800 from RM450.

b) Increasing meeting attendance allowance for all committee members from RM30 to RM50.

c) Increasing the monthly allowance of Imam to RM750.

d) Increasing the monthly allowance of KAFA teachers to RM800.

10. To enhance the socioeconomic status of the Orang Asli and Pribumi, a sum of RM100 million is provided to formulate a new development model for Orang Asli. Jabatan Hal Ehwal Orang Asli will be transformed into Jabatan Kemajuan Orang Asli.

11. Toll rates at 4 highways owned by PLUS Expressway Berhad will not be raised for the next 5 years with immediate effect.

12. To ensure quality health:

a) An allocation of RM15.2 billion to build new hospitals, increase the number of doctors and nurses as well as medical supplies and equipment.

b) Adding another 25 1Malaysia Clinics.

13. A sum of RM350 million is allocated to implement various programmes for public safety.

14. The role of NGOs is recognised with a provision of RM70million to implement integrated social programmes with Government agencies.

15. An allocation of RM1.9 billion to fund environmental conservation projects.

16. To assist in implementing Corporate Social Responsibility:

a) 10 Trust Schools will be given established and receive financial contributions from Khazanah Nasional Berhad.

b) Primary school students nationwide will receive a supply of multi-vitamins.

c) A 1Malaysia Youth Fund will be established with RM20 million start-up.

d) 4 1Malaysia Mobile Clinics will be provided for the rakyat.

Strengthening Public Service Delivery

1. The MyCoID Gateway initiative will be expanded to more ministries and Government agencies.

2. Application for Permanent Resident (PR) status can be submitted after 5 years.

3. The Stamp Act 1949 is amended to enable the valuation of properties after the payment of stamp duty.

4. For civil servants:

a) The Government abolishes the Competency Level Assessment (PTK).

b) Special financial assistance amounting to RM500 is granted to civil servants from Grade 54 and below, contract officers and retirees.

c) Increasing the rate for Funeral Arrangement Assistance to RM3,000.

d) Extending the services of Pegawai Khidmat Singkat ending 31 December 2010 by 1 year.

e) Allowing the purchase of properties from parents, children and siblings.

f) Raised the loan amount to RM20,000 for additional works on low cost houses for Support Group II.

g) Raising the maximum housing loan eligibility to RM450,000.

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