KUALA LUMPUR – The tabling of Budget 2023 by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz on Friday has largely been hailed as an inclusive one, as the government looks to chart its way through a host of economic challenges, including rising costs of living.
With this year’s budget being the biggest on record at a whopping RM 372.3 billion, Budget 2023 is a RM40.2 billion increase from the 332.1 billion for 2022.
From next year’s total allocation, RM272.3 (73.1%) will go to operating expenditure, RM95 billion (25.5%) on development, while RM5 billion will go towards Covid-19 fund commitments.
The government has also set aside RM2 billion for contingency savings, amid moderate projections that gross domestic product growth will hover around 4% to 5% next year.
Prime Minister Datuk Seri Ismail Sabri Yaakob noted that Budget 2023 outlines preparatory steps as the government gears up to face uncertain economic conditions.
Regardless, Ismail Sabri points out that allocations for next year focus on all Malaysians, whether they are from rural or urban areas.
With this in mind, The Vibes has looked into some highlights of some of the biggest winners and losers of Budget 2023.
The winners
1. Civil servants
The bulk of the nation’s civil servants can rejoice over the government’s approval of a RM100 additional salary increase for those in Grade 11 to Grade 56, involving a total allocation of RM1.5 billion.
The government also announced an RM600 increase for the public workers' special Aidilfitri financial assistance, to be paid in March next year at a cost of RM1.3 billion.
This means that some eligible civil servants can receive a maximum of RM2,500 in cash assistance from the government for the coming year.
2. Women, children, and households
The government allocated RM235 million to help women entrepreneurs increase their business capacity and improve their marketing strategies.
Tengku Zafrul said the funds would be distributed through avenues such as Semarak-Nita BSN, Tekunita under Tekun, the Dananita programme under Majlis Amanah Rakyat, and Bizlady Bank Rakyat.
He said to solidify the role of women in the working world, women returning to work after a career break will be given a tax break from 2023 to 2028.
Additionally, parents are also entitled to a RM3,000 tax exemption for nursery and kindergarten enrolment until 2024.
The government also allocated RM10 billion meant for direct cash aid through the Welfare Department and Bantuan Keluarga Malaysia for 2023, which includes a one-off aid of RM2,500 for households that earn less than RM2,500 and have five or more children.
3. The elderly and disabled
The government announced RM1.2 billion in funding for persons with disabilities, a sum that includes healthcare costs for those with chronic illnesses, unemployment allowances, and financial support.
Tengku Zafrul also noted another RM1 billion allocation for the welfare of the elderly.
4. Youth
Youth are also seen to be among the biggest beneficiaries of Budget 2023 with at least two million young people expected to receive RM200 worth of e-wallet credit under the ePemula initiative. The RM400 million allocation involved in this will see those aged between 18 to 20, and full-time students aged above 21 years old receive the handout.
The government also allocated RM305 million for youth entrepreneurs who can apply for loans of up to RM50,000 under BSN and Mara.
5. B40 group
While economically marginalised, the B40 was not left out in Budget 2023. In fact, the government allocated at least RM10 billion in monthly assistance via the Social Services Department and the Bantuan Keluarga Malaysia initiative, or BKM. The allocation is expected to benefit more than 50,000 households.
Additionally, the Keluarga Malaysia hardcore poverty eradication programme (BMTKM) has been allocated RM150 million, and the government has prepared an additional RM1 billion to combat hardcore poverty.
6. Sports development
After a disappointing 2022 budget of RM289 million, the Youth and Sports Ministry can once again celebrate a slight increase of RM374 million for next year.
The bulk of the allocation will be used for the development of the Malaysian sports ecosystem, which includes unearthing new talents, holding training programmes, and improving facilities.
Adding to that, a sum of RM145 million will be distributed for construction, refurbishment works, and maintenance at sports facilities throughout the country.
The losers
1. Doctors and nurses
While the Health Ministry received a sizable RM3.7 billion bump to RM36.6 billion for 2023, compared with RM32.4 billion last year, most of the allocation is going to beef up healthcare capacity, and build new health clinics.
However, there was little or no mention of new incentives for doctors, dentists, or nurses, who were the main frontliners in the country’s battle against the Covid-19 pandemic.
However, to be fair, the Health Ministry in February announced that 8,000 permanent positions for health practitioners would be created from 2022 until 2025 to resolve the issue of contract doctors.
2. Musicians and entertainers
For the creative sector, the government announced RM50 million for the National Film Production Fund for the country to produce more patriotic films such as Leftenan Adnan, Ola Bola, and Mat Kilau.
An additional RM102 million was also announced for the digital content fund to market the products of artists. The government will also exempt import duty and sales tax on studio equipment and the production of films.
However, musicians and other artists are not specifically mentioned in this year’s budget, unlike last year when RM225 million was allocated to the MyCreative Ventures group to boost the resilience of the creative economy.
3. Hoteliers
To boost the tourism sector, the government allocated RM20 million to promote Malaysia as a medical tourism site; RM10 million to Think City Sdn Bhd to re-urbanise Kuala Lumpur, namely at Petaling Street; RM25 million in incentives to promote domestic tourism, and RM10 million for ecotourism.
The finance minister also announced new chartered flights from the Middle East and East Asia as well as RM90 million in grants to promote activities related to tourism.
However, the Penang chapter of the Malaysian Association of Hotels (MAH) said more funding is needed for the tourism industry to promote Malaysia aggressively, as competition from other countries is fierce, now that international tourism has resumed following the Covid-19 pandemic.
MAH Penang chairman Tony Goh pointed out that the decline of the ringgit against other currencies makes it difficult to promote Malaysia overseas. – The Vibes, October 9, 2022
