KUALA LUMPUR – This is Malaysia’s first budget tabling amid a pandemic – a budget expected to be the largest in the country's history.
Join The Vibes’ live coverage of the event. – The Vibes, November 6, 2020
READ THE FULL SPEECH HERE:
7.01pm: The Community Farming Programme to semi-urban and rural communities has been extended with an allocation of RM30 million. It will provide equipments such as fertigation kits and crop media up to RM500 per individual or RM50,000 per community.
The Organic Agriculture Project has been implemented as a community project with an allocation of RM50 million.
Implementation of the e-Satellite Farm Programme with an allocation of RM10 million for purchasing agriculture equipment based on the Internet of Things, including drones.
Financing under the Vessel Modernisation and Capture Mechanisation Programme of up to RM5 million at a rate of 3.5% for a period of 10 years to fishermen in zones A and B to upgrade equipment, nets and boats. Agrobank will provide RM150 million for this purpose.
Funding under the Agrofood Value Chain Modernisation Programme of up to RM1 million at a rate of 3.5% for a period of 10 years for agricultural entrepreneurs to procure equipment and technology based on IR4.0. Agrobank will provide RM60 million for this purpose.
Implementation of Aquaculture Development Programme with an allocation of RM10 million for micro-entrepreneurs to purchase equipment to develop high-value aquaculture livestock.
Implementation of impactful and high-value farming projects with an allocation of RM100 million through collaboration with state governments.
6.58pm: RM50 million is allocated to a training and placement programme for 8,000 workers of Malaysian airlines.
6.56pm: To encourage pharmaceutical companies, including those producing the Covid-19 vaccine, to invest in Malaysia, an incentive in the form of an income tax rate of 0% to 10% will be offered for the first 10 years
6.54pm: RM25 million is allocated to the micro-franchise development programme, affordable franchise programme and Buy Malaysian Products programme.
The government will allocate RM100 million for Sukuk Prihatin to research infectious diseases, including for the development of vaccines, diagnoses, and treatment.
6.53pm: RM100 million is allocated for infrastructure maintenance in industrial areas and RM42 million for the Jendela programme to upgrade internet connectivity in 25 industrial areas. A water treatment plant will be developed in Kubang Pasu, Kedah, to support investors in the Kota Perdana Special Economic Zone in Bukit Kayu Hitam, and also to serve residents in the area.
RM45 million is allocated to meet the water supply needs of the petrochemical sector in the Gebeng industrial zone.
6.50pm: RM400 million is allocated to boost research and development in science, technology and innovation initiatives, and RM20 million set aside for the Malaysia Techlympics dan Science Space programmes.
6.43pm: All tax incentives for MRO activities (aerospace, ship building and repair, Bionexus status, economic development corridors) that end this year will be extended till 2022.
6.40pm: To encourage investments within main sectors, RM1 billion has been allocated to encourage value-added investments in technology. This is also to support investments in research and development in the aerospace industry, and in electronic clusters within the Batu Kawan industrial area in Penang and in Kulim, Kedah.
Bank Pembangunan Malaysia will introduce a RM1.4 billion Skim Pembangunan Nasional to support the domestic supply chain and boost domestic production of items, including medical equipment.
6.38pm: A new high technology fund worth RM500 million will be put in place by Bank Negara to support the private sector in high technology and innovation.
Through Penjana, the government offers a special tax rate to selected companies that shift their business to Malaysia and make fresh investments. The incentive will be extended another year to December 31, 2022.
To continue assisting small and medium entreprises, RM2 billion will be allocated under Bank Negara Malaysia through loans from banking institution
6.32pm: Unlimited travel pass initiative to be expanded to Penang and Kuantan with an allocation of RM300 million. This is for bus, rail and Prasarana services. The passes are worth RM30 per month.
Similar unlimited travel passes priced at RM5 each will be introduced for school students from Standard 1 to Form 6 – and also for the disabled – to use on KTM Komuter trains in certain areas, including the Klang Valley and the Beaufort-Tenom line in Sabah.
6.31pm: Defence Ministry and Home Ministry allocated RM16 billion and RM17 billion respectively.
6.30pm: Feeder bus transformation programme expanded in phases to included Johor Baru, Kuching, Kota Kinabalu, and Kuantan at a cost of RM150 million.
6.29pm: Rent-to-Own scheme to be conducted till 2022, involving 5,000 PR1MA homes with a total value of RM1 billion.
To further ensure the readiness of all main Malaysian Armed Forces assets, the government will increase the allocation for its maintenance to RM2.3 billion for 2021 compared with the previous RM2 billion.
The government will allocate RM27 million for CyberSecurity Malaysia to increase their monitoring of the country's cybersecurity needs.
The People's Volunteer Corps (Rela) will be allocated RM153 million, which will also be used to upgrade their training facilities.
6.27pm: RM1.2 billion is allocated to provide quality and comfortable homes for low-income earners.
6.25pm: A full stamp duty exemption of up to RM500,000 is granted on letters of ownership and borrowing agreements for first-time home buyers. The exemption is for sale and purchase agreements completed from January 1, 2021 till December 31, 2025.
6.18pm: RM50 million is allocated to upgrade internet speed for the Malaysian Research & Education Network from 500mbps to 10gbps. The government together with BSN will prepare RM100 million allocation to provide loans for higher education students who are beneficiaries of PTPTN to buy laptops.
6.16: RM6 billion is allocated for technical and vocational education and training (TVET). RM300 million is allocated for loans to 24,00 TVET programme participants. The government is rolling out the Dual Nationality Training System Plus, with a monthly allowance of RM1,000, an increase from the previous RM625. The overall allocation for this is RM60 million, benefiting 10,000 participants.
6.11pm: An additional RM725 million is allocated to upgrade buildings and infrastructure at 50 dilapidated schools. For rural schools in Sabah and Sarawak, the government will carry out 184 tube-well projects at a cost of RM120 million. RM45 million is provided for special needs education.
6.10pm: The Education Ministry continues to receive the largest allocation. This year it gets RM50.4 billion or RM15.6% of the overall budget. RM420 million is allocated for the nutritional needs of school students from low-income families. The government will enhance its supplementary food programme by increasing the frequency of free milk supplies from twice a week at present to every school day.
6.07pm: RM800 million is allocated for repair and maintenance works at government schools.
6.06pm: In a pilot project, GLCs and GLICs will contribute RM150 million to the Cerdik Fund to provide laptops to 150,000 students in 500 schools. This will be supervised by Yayasan Hasanah.
6.05pm: The lifestyle-related tax exemption is increased from RM2,500 to RM3,000, with RM500 especially for sports-related purchases. The scope of the exemption has been expanded to include subscriptions to online news portals.
6.04pm: To help boost youth employment, private employers will get incentives of as much as RM1,000 per month for three months to hire new graduates for apprentice programmes. Employers can also apply for grants of up to RM4,000 for apprentice training programmes. RM250 million is allocated to this programme, which is expected to benefit up to 50 million new graduates.
To encourage cashless transactions among youths, the government will credit a total of RM50 million via Programe eBelia in one-off payments to the e-wallets of those aged 18 to 20 years. A total of RM75 million is allocated for this initiative, expected to benefit more than 1.5 million youths.
6.03pm: RM500 million is allocated for the Jalinan Digital Negara (Jendela) initiative to connect 430 schools nationwide to the internet. Malaysian Communications and Multimedia Commission will allocate RM7.4 billion to expand broadband networks in 2021 and 2022.
6.01pm: RM103 million is allocated to build, upgrade and maintain sports facilities nationwide. RM55 million is allocated for programmes to develop hockey, rugby, badminton and cycling, among others. This includes RM15 million for e-sports development.
5.59pm: Funding under the Malaysian Road Records System has been raised up to 20%, or RM50 million, to ensure road facilities are upgraded in all states.
RM19 million is allocated for the Malaysia National Health Agenda and RM28 million for MyFit, National Sports Day and the Inspire programme for the disabled community.
5.56pm: Rural development will get RM2.7 billion for infrastructure improvements – RM1.3 billion for 920km of rural roads, RM632 million for water supply and alternative water supplies to 4,800 households; RM250 million for electricity supply for more than 1,000 households; RM355 million for house assistance programmes to help the poor rebuild and improve houses, with 15,000 houses targeted; RM121 million to install 27,000 street lights and the operation and maintenance of 500,000 street lights in villages.
5.54pm: RM20 million is allocated to prepare community centres as places where children can receive care after school hours. RM170 million is allocated for early childhood education programmes by Kemas.
5.52pm: Added tax cuts will be given to employers who hire senior citizens. The cuts will be extended till 2025. Senior citizen activity centres run by NGOs will be allocated RM50,000, an increase from the previous RM33,000, benefitting 285 centres nationwide.
5.51pm: RM158 million is allocated to the Orang Asli community. This includes social service programmes and the Orang Asli integrated village development programme. The government will also upgrade and build 14 kindergartens such as in Pos Slim Sg Kinta, Perak and Pos Sg Kelai Jempol, Negri Sembilan.
RM5 million has been readied to run surveying work to map borders in 21 Orang Asli villages. RM 41 million is allocated for Native Customary Rights programmes in Sabah and Sarawak.
5.50pm: Community-based rehabilitation organisation workers will see their rates increased from RM800 to RM1,200 a month, and supervisors from RM1,200 to RM1,500 a month. The overall allocation is RM100 million.
5.47pm: Volunteers for Program Khidmat Bantu di Rumah will receive up to RM400 each – previously RM150 – and programme clients will receive RM80 each, previously RM30. Tax relief for disabled couples has been increased from RM3,500 to RM5,000.
5.46pm: The Prisons Department will be allocated RM20 million for its inmate development programme. Employers who hire ex-convicts and former drug addicts will see their tax cuts continue till 2025.
5.45pm: RM50 million is allocated for upgrading, maintenance and development of small-scale religious houses of worship under local governments.
5.44pm: RM15 million is allocated to the Cultural Economy Development Agency.
5.43pm: Rukun Tetangga will see increase in grants from RM4,800 to RM6,000.
RM10 million is allocated for cervical cancer screening programme and mammogram testing subsidy incentives for women at high risk of breast cancer.
5.42pm: Tekun to prepare RM20 million for Indian entrepreneurs and RM5 million for entrepreneurs in other communities.
For the Chinese community, RM17 million is allocated to repair education facilities and develop new villages, including RM100 million in financing for the business community via BSN.
For the Indians, RM100 million is set aside for the Indian Transformation Unit.
5.40pm: RM30 million is allocated to build nurseries at government buildings, especially hospitals. For the private sector, a matching grant of up to RM20 million will be provided to encourage companies to offer childcare centres on the premises.
5.38pm: Training programmes in packaging and labelling, marketing strategy, as well as technical training for trading will be given to 2,000 women entrepreneurs through Program Pembangunan Perniagaan Usahawan Mikro, or BizMe.
5.37pm: RM21 million is allocated for a social support centre in response to the issue of domestic violence.
5.36pm: Women entrepreneurs will get RM95 million for microcredit schemes via Tekun, Mara and Agrobank. RM50 million allocated for Yayasan Pembangunan Ekonomi Islam Malaysia.
5.35pm: RM500 one-off payments for imam, bilal and Kafa teachers, among others.
5.33pm: RM1.4 billion is allocated for Islamic affairs under the Prime Minister's Department.
5.30pm: RM4.6 billion is allocated to spur and empower Bumiputera entrepreneurs. A total of RM11.1 billion will be provided for 2021 – RM3.1 billion more than the year before – to support Bumiputera development and reduce inequity between races. Of this amount, RM6.5 billion is allocated for access to high quality education to Bumiputera institutions like Mara and UiTM for specific programmes.
RM500 million is dedicated for Bumiputera entrepreneurs to boost their participation in primary sectors.
5.29pm: The government will continue with its hiring incentive for three months. It will be targeted, aimed at the tourism sector. RM1.5 billion has been allocated, with the funds expected to aid 70,000 employers and 900,000 workers.
5.25pm: To encourage savings during retirement, individual income tax reliefs on contributions up to RM3,000, under Skim Persaraan Swasta or PRS, will be extended till the 2025 assessment year.
5.24pm: The government will introduce MySTEP, or the Short-term Employment Programme, with an allocation of RM700 million. The scheme will offer 50,000 contract jobs in the public sector and government-linked companies starting January 2021. Under this initiative, 35,000 job opportunities will be offered in the public sector, with priority given to filling posts like nurses, medical attendants, social welfare workers, and part-time teachers. GLCs will provide 15,000 job opportunities, with priority given to the technical and financial fields.
5.21pm: Socso to continue its incentives to hire workers under PenjanaKerjaya. Workers with salaries of at least RM1,500 a month will have incentives raised from RM800 a month to 40% of their monthly pay, with a ceiling of RM4,000 a month. Disabled, long-term unemployed, retrenched workers, employers will be given additional incentives of up to 20%, making the full incentive amount to 60%.
Sectors highly dependent on foreign workers will be given incentives of as much as 60% of one's monthly salary - 40% to employers and 20% to local workers who replacing foreign workers.
Employers of those hired to work under PenjanaKerjaya may make claims of RM7,000 for high-skill training programmes or professional certification courses - increased from the present RM4,000.
5.16pm: RM100 million allocated to Human Resources Development Fund to carry out training programmes with the private sector; RM100 million for Malaysia Digital Economy Corporation; RM100 million for federal development organisations such as the Iskandar Regional Development Authority and Sabah Economic Development and Investment Authority; RM30 million to Perhebat to train 12,000 armed forces personnel.
5.18pm: EPF will allow members to withdraw from Account 2 to pay for life insurance, takaful, and critical diseases for themselves and family members.
5.15pm: Fresh graduates to get RM3,000 vouchers for professional certification in public and private institutions.
5.12pm: Tax relief for education fees will be expanded to cover upskilling programmes conducted by recognised bodies, limited to RM1,000 per year.
5.11pm: Socso job search allowance to be extended for three months. The first month will be 80% of one's last pay, 50% in the second month, and 30% in the third month.
5.10pm: Employment Insurance Scheme (Socso) to provide six-month allowance for those who lost their jobs, with 80% in the first month, and subsequent months reduced in stages to 30% of their last pay.
5.08pm: Individuals can make targeted withdrawals from EPF Account 1 of RM500 per month up till RM6,000 for 12 months.
5.07pm: Starting December 2020, the application process for loan repayment assistance will be made easier for the M40 group. Borrowers only need to self-declare a reduced income to get repayment assistance.
5.04pm: Workers’ EPF contribution lowered to 9% from 11%, starting January 2021, for 12 months.
5.02pm: Banks will enhance Bantuan Pembayaran Bersasar (BPR) to B40 borrowers who are recipients of Bantuan Sara Hidup and prospective recipients of BPR, and also to micro entrepreneurs. The amount approved for this is RM150 million.
5.01pm: Households earning below RM2,500 with one child will receive RM1,200 aid, while those with 2 children or more will get RM1,800. Households earning between RM2,501 and RM4,000 with one child will get RM800, and those with two children or more will get RM1,200. Households earning between RM4,001 and RM5,000 with one child will receive RM500, and those with two children and more will get RM750. Singles earning RM2,500 and below will receive RM350. Qualifying age is lowered to 21
5.00pm: RM21 billion was channelled through Bantuan Prihatin Nasional and Bantuan Sara Hidup to 10.6 million recipients in 2020. In January 2021, BPN Phase 2 payments amounting to RM2.2 billion will be disbursed.
4.53pm: B40 children (ages 7-18) to get RM150 each, up to RM450 per family; B40 children (age 6 and below) to get RM200 each, up to RM1,000 per family.
4.50pm: Financial aid for disabled community: RM300 for those unable to work; RM500 for senior citizens, caretakers, bedridden patients; RM450 allowance for disabled workers.
4.46pm: B40 aid recipients to get RM50 vouchers for Perlindungan Tenang, takaful life insurance, and personal accidents.
4.45pm: Tax relief for parents’ medical needs increased to RM8,000 from RM5,000.
4.44pm: Tax relief for full medical check-up increased to RM1,000 from RM500.
4.42pm: Medical tax relief will be increased to RM8,000 from RM6,000.
4.41pm: Tax relief for pneumococcal and influenza vaccinations up to RM1,000.
4.38pm: The Covid-19 vaccine is expected to cost more than RM3 billion. The ceiling for the Covid-19 Group Fund under the Temporary Measures for Government Financing [Coronavirus Disease 2019 (Covid-19)] 2020 is proposed to be raised from the previously approved RM45 billion to RM65 billion.
4.37pm: RM24 million for mental health, anti-substance abuse programmes.
4.36pm: 100,000 health frontliners will receive a one-off payment of RM500, says Tengku Zafrul.
4.35pm: Tengku Zafrul says the Finance Ministry held consultative sessions with ministries, state governments, captains of industry, academicians, NGOs, leaders of political parties, and Malaysians from all walks of life – youth, women, parents, and senior citizens.
4.34pm: The theme for Budget 2021 is “Teguh Kita, Menang Bersama”.
4.32pm: “I’m touched by #KitaJagaKita, which Malaysians have practised,” says Tengku Zafrul
4.30pm: In 2021, the national economy is expected to grow between 6.5% and 7.5%, says Tengku Zafrul.
4.25pm: Tengku Zafrul begins Budget 2021 speech..
4.20pm: Azhar says despite his decision to allow all MPs in especially for the Budget's tabling, the initial entry limit was decided in a consensus by the chief whips, and he will be enforcing it strictly in future meetings.
4.10pm: Speaker Datuk Azhar Azizan Harun backtracks on decision, allowing all 80 MPs to enter Dewan Rakyat.
4:05pm: Several MPs, including Lim Guan Eng and Datuk Seri Anwar Ibrahim, question seating standard operating procedures and the entry limit for the Dewan Rakyat.
4.00pm: MPs make their way into the Dewan for the tabling of the Budget.
3.10pm: Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz holds a briefcase containing the Budget 2021 speech outside the Finance Ministry building in Putrajaya before leaving for Parliament.
MORE TO COME
