Budget 2018

 

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#Budget2018: Economic Highlights Of 2018 Budget

KUALA LUMPUR, Oct 27 (Bernama) -- Following are the economic highlights of the 2018 Budget themed: 'Prospering an Inclusive Economy, Balancing Between Worldly and Hereafter, for the Wellbeing of Rakyat, Towards the TN50 Aspiration,' tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament today.

*Fiscal deficit to narrow further to 2.8 per cent in 2018 from 3 per cent in 2017;

*Total budget allocation RM280.25 billion (2017: RM260.8 billion), of which RM234.25 billion for operating expenses and RM46 billion for development expenditure;

*Federal government's revenue collection is expected to record RM239.86 billion in 2018 (2017: RM219.7 billion);

*Total investment expected to increase by 6.7 per cent, accounting for 25.5 per cent of GDP in 2018;

*Private investment is estimated to reach RM260 billion in 2018 (2017: RM230 billion);

*Public investment is estimated to record RM109 billion;

*Principal Hub Tax Incentive will be extended until Dec 31, 2020;

*The government to allocate RM200 million to the high-impact strategic fund under MIDA;

*RM7 billion to be allocated under the Skim Jaminan Pembiayaan Perniagaan, of which RM5 billion will be for working capital and RM2 billion with 70 per cent guaranteed by the government for the services sector;

*RM1 billion will be provided as loans to companies with 70 per cent guaranteed by the government;

*RM1 billion will be provided to the Syariah-compliant SMEs financing scheme, increasing the fund size to RM2.5 billion;

*RM200 million is allocated to SMEs for training programmes, grants and soft loans under the SME Corp;

*RM82 million allocated for the development of Halal Industries and Products under various agencies;

*RM500 million allocation for TEKUN;

*RM200 million allocation for Amanah Ikhtiar Malaysia increasing the fund size to RM2.7 billion;

*RM80 million allocated under the Rural Economic Financing Scheme through Bank Rakyat and SME Bank to provide financing facilities to rural Bumiputera entrepreneurs;

*RM150 million will be provided to MATRADE, MIDA and SME Corp to implement promotional programmes and expand export markets, including Market Development Grant;

*RM1 billion is provided to EXIM Bank for insurance coverage credit facilities and RM200 million for credit financing facilities to SME exporters;

*RM100 million is provided as loans with 70 per cent guaranteed by the government to automate production of local furniture for exports;

*RM110 million allocated to provide an alternative road to Port Klang;

*MRT2 Sungai Buloh-Serdang-Putrajaya Line project to cost about RM32 billion;

*Government to expedite construction of MRT3 or Circle Line, set for completion by 2025;

*Government to allocate RM230 million in 2018 for the central spine road from Raub to Bentong and Gua Musang, Kelantan to Kampung Relong, Pahang;

*Pulau Pangkor, Perak declared as duty-free island;

*A Special Border Economic Zone in Bukit Kayu Hitam will be developed;

*RM95 million is allocated to upgrade and construct jetties, as well as dredge river estuaries;

*RM45 million is allocated to develop a biometric control system to monitor bus drivers;

*RM55 million is provided to subsidise train services in rural areas, from Tumpat to Gua Musang;

*Pulau Pinang International Airport and Langkawi International Airport will be upgraded;

*A new airport in Mukah will be constructed, while airports in Kota Bharu and Sandakan will be expanded;

*RM1.5 billion is allocated under SJPP, using intellectual property as an instrument of financial collateral with up to 80 per cent financing guarantee;

*Provide tax exemption and stamp duties imposed on contract notes for sales and purchase transactions of Exchange-Traded Fund and Structured Warrants, effective January 2018;

*An alternative trading system to be introduced, subject to compliance to all requirements and regulatory standard;

*RM1 billion will be provided by major institutional investors for investments venture capital in main selected sectors, coordinated by SC;

*Income tax exemption for recipients of the special green Sustainable and Responsible Investment Sukuk grant totalling RM6 million;

*Additional tax deductions are extended to cover employers hiring workers affected by accidents and critical illness and certified by SOCSO medical board that they are fit to work;

*Every Malaysian born from Jan 1, 2018 to 2022 will be provided with an Initial Savings Fund of RM200 through PNB's Unit Trust Scheme, Amanah Dana Anak Malaysia (ADAM50);

*RM200 million for Program Keusahawanan dan Premis Perniagaan PUNB;

*RM200 million is allocated for Program Keusahawanan MARA;

*RM155 million for programmes such as vendor capacity development, Tunas Usahawan Belia Bumiputera (TUBE), Skim Usahawan Permulaan Bumiputera (SUPERB) and Skim Anjakan Usahawan;

*RM150 million provided to Perlaburan Hartanah Bhd and another RM150 million to Ekuiti Nasional Bhd;

*Individual income tax rates reduction of two percentage points for income tax band between RM20,000 and RM70,000, which will increase disposal income between RM300 and RM1,000;

*Zero-rated GST for reading materials comprising all types of magazines and comics, effective Jan 1, 2018;

*Cruise operators are given relief from paying GST on handling services provided by port operators in Malaysia, effective Jan 1, 2018 to Dec 31, 2020;

*Construction of school buildings, and houses of worship funded through donations are given GST relief " applies for construction contract signed on or after April 1, 2017;

*Imports of oil and gas-related equipment under a lease agreement, supplied to customers in Malaysia by companies in designated areas, namely Labuan, Langkawi and Tioman are given GST relief, effective Jan 1, 2018;

*Imports of big ticket items such as aircraft and ships by airlines and shipping companies registered in Malaysia are given GST relief;

*GST relief are also given to companies in the oil and gas industry importing oil rigs or floating structures, effective Jan 1, 2018;

*The management and maintenance service of stratified residential buildings supplied by the joint management body and management corporations are not subjected to GST -- this treatment expanded to management and maintenance provided by housing developers, effective Jan 1, 2018;

*Service by local authorities will not be subjected to GST, effective April 1 or Oct 1, 2018, according to the choice of local authorities;

*Step up financing scheme by PR1MA will be extended to private housing developers subject to criteria;

*Abandoned housing projects stamp duty exemption for loan agreements and letter of consent to transfer are given to rescuing contractors and original owners of abandoned projects, effective Jan 1, 2018 to Dec 31, 2020;

*To promote rental of residential homes, government propose a 50 per cent tax exemption on rental income received by resident individuals not exceeding RM2,000 per month for resident individuals (assesment of 2018-2020);

*Require at least 30 per cent participation of women as board of directors in GLCs and GLIC, as well as statutory bodies by end-2018;

*RM20 million allocated to conduct training and entrepreneurship programmes;

*RM245 million matching grant under the Domestic Investment Strategic Fund to upgrade the Smart Manufacturing facilities;

*Extension of the incentive period for accelerated capital allowance of 200 per cent on automation equipment from year of assessment of 2018-2020;

*Capital allowance for ICT equipment, which includes spending on computer software development, is claimable for the period of four years beginning year of assessment of 2018 to 2020, including for SMEs;

*RM5 billion allocated under the Green Technology Financing Scheme to promote investment in green technology industry;

*RM1.4 billion for non-revenue water programme to reduce average loss of water;

*RM1.3 billion to construct Off-River Storage as an alternative water resources;

*RM517 million for flood mitigation programmes;

*RM83.5 million to construct infrastructure of first phase of DFTZ in Aeropolis KLIA; and

*Increase the minimum value for imports to RM800 from RM500 to establish Malaysia as regional e-commerce hub

--BERNAMA

 
 
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