KUALA LUMPUR – The nation awaits as Prime Minister Datuk Seri Anwar Ibrahim tables a revised national budget today, which is expected to take into account the current economic challenges, while driving the country’s growth and attracting investments.
Anwar, who is also finance minister, had said the government was taking into consideration in Budget 2023 the country’s competitiveness, the speed of business approvals, as well as several new initiatives – including digitisation, sustainable consumption, and production of natural resources in the downstream process.
The spending plan will also be the maiden budget of Anwar’s unity government following last November’s general election, and is expected to address concerns about the cost of living, food prices, and targeted subsidies.
The previous budget iteration has not been approved or debated in the Dewan Rakyat following the dissolution of Parliament on October 10 last year.
Join us as we bring you the live highlights of Budget 2023. – The Vibes, February 24, 2023
6.15pm: Anwar has ended his budget speech. The Dewan Rakyat will debate the supply bill at the policy stage for two weeks when the house reconvenes on Monday, and at the committee stage before MPs vote on it.
6.14pm: For civil servants, a RM700 in Aidilfitri Special Financial Assistance will be given to officers of Grade 56 and below, including contractual appointees. RM350 will be given to government pensioners. These payments are to be made in April.
6.14pm: RM50 million has been allocated to replace obsolete lifts at public housing.
6.14pm: The monthly My50 pass will be continued. Prasarana Malaysia Bhd will also introduce the unlimited bus pass myBAS50 for Johor Baru residents.
RM150 million is allocated for bus services in Melaka city, Kuching, and Kota Kinabalu.
6.10pm: Tax relief for life insurance premiums, life takaful contributions, and voluntary EPF contributions will be increased to RM3,000.
6.08pm: To replenish depleted EPF savings after the pandemic withdrawals, the government will contribute RM500 to Account 1 of members aged 40-54 with savings of less than RM10,000. This will benefit some two million EPF members and involve an allocation of RM1 billion.
The government will also raise the matching EPF contributions from RM250 previously to RM300 for the self-employed who save with the fund. This increase will involve RM30 million and benefit some 100,000 self-employed contributors.
6.05pm: For 2023 income tax filing, the tax break for medical expenses will be increased from RM8,000 to RM10,000. This will also cover a wider scope of expenses to include treatment for autism, Down syndrome, and specific learning disabilities of up to RM4,000.
6.03pm: A special block with 476 beds for women and children will be built at Melaka Hospital, at a cost of RM700 million.
6.02pm: The Health Ministry will receive the second highest allocation – RM36.3 billion for 2023 – compared to RM32.4 billion for 2022.
6.00pm: The budget for the schools’ food programme, Rancangan Makanan Tambahan, will be raised from RM625 million to RM777 million, benefitting 700,000 pupils. For preschool children, a similar programme will have its allocation increased from RM89 million to RM108 million, and benefit 240,00 children at preschools under the Education Ministry.
6pm: 35,000 Kafa teachers will see an increased allowance of RM100 – bringing the total to RM1,100 each – as well as a special contribution of RM600 to imam, bilal, tok siak, noja, marbut, Kafa, and takmir teachers.
5.59pm: The Education Ministry still receives the highest allocation among all ministries. Its total budget for 2023 is RM55.2 billion, compared to RM52.6 billion for 2022.
5.58pm: The Higher Education Ministry gets RM15.3 billion for 2023, compared to RM14.5 billion for 2022.
5.57pm: The government has agreed to give discounts on National Higher Education Fund loan repayments of up to 20% for three months from March 1.
Those earning below RM1,800 and facing financial difficulties can postpone their loan repayments for six months.
5.54pm: For 2023, RM64 billion will be spent on subsidies, assistance, and various incentives in terms of price controls, financial aid, and other people-centric activities.
5.52pm: A portion of wang ehsan (compassionate funds) from petroleum revenue from Kelantan and Terengganu will be channelled directly to help the poor in those states. The same will be done with oil revenue from Sabah and Sarawak for poverty eradication programmes in the East Malaysian states.
5.50pm: Some two million youths aged between 18 and 20 will each be given a one-off e-cash credit of RM200 as part of the “e-Tunai Belia Rahmah” scheme, with a total allocation of RM400 million.
Households earning less than RM2,500 will be given cash assistance up to that amount, while an additional RM600 in aid in the form of food baskets and basic food items vouchers will also be distributed to those in the lowest income brackets.
This will see eligible families and the poor receive a maximum of RM3,100.
5.47pm: The government will reduce income tax rates for the M40 while hiking taxes on the high-income group.
For those in the RM35,000-100,000 income range, their individual income tax rate is to be reduced by 2%, while those making between RM100,000 and RM1 million will have their tax rate raised by between 0.5-2%.
5.46pm: The government has set aside RM100 million to hold Jualan Rahmah programmes in all 222 parliamentary constituencies.
The government will also increase the allocation from RM200 million to RM225 million to distribute basic necessities to 25 new areas, including Paloh and Passin in Sarawak, Pasir Raja in Terengganu, and Kuala Krai in Kelantan.
5.45pm: To improve the income of the poor, the new People’s Income Initiative will be launched – involving RM750 million for 2023 – to enable participants to earn between RM2,000 and RM2,500 a month for two years, after which they are expected to use the earnings to generate future income. The scheme will provide assistance or equipment to participants to generate their own income and will be given out on a monthly basis instead of as a lump sum. Assistance can also be in the form of employment subsidies for employers. The initiative will be managed by the Economy Ministry.
5.42pm: The 2023 budget allocates RM250 million to promote tourism, of which RM115 million will be for grant-matching for the tourism and culture sectors.
The government will improve tourism infrastructure, such as:
– New road from Habu to Tanah Rata, Cameron Highlands, costing RM480 million
– Upgrade Jalan Tun Hamzah to Semabok Lebuh AMJ Daerah Melaka Tengah, costing RM300 million
– Build road and bridge in Sg Sepang, connecting Bukit Pelandok, Port Dickson, and Sg Pelek, costing RM160 million
– Improve highway connectivity to Pengerang by adding another lane to the Senai Desaru Expressway.
– Upgrade Yong Peng Utara-Senai Utara section of the North-South Highway (from four lanes to six), costing RM525 million
5.54pm: RM50 million will be given to Malacca and Penang to maintain their UNESCO world heritage sites
5.33pm: To spur local start-ups, government-linked companies including Khazanah Nasional Bhd and EPF will invest RM1.5 billion in those that are innovative and have high-growth potential.
5.31pm: The government will subsidise preschool fees at RM180 a month for children from households earning under RM7,000 a month.
5.30pm: For the palm oil sector, the government will allocate RM50 million in matching grants to encourage the use of automation by skilled local workers. Another RM80 million will be allocated to improve sustainability in the industry and to enhance efforts against the anti-palm oil lobby.
5.28pm: Socso gets RM45 million to incentivise private sector employers – with RM600 per month – to hire 17,000 TVET graduates for three months. Socso will also incentivise employers to hire disabled people, ex-convicts, the homeless, and the chronically unemployed.
5.26pm: To encourage women to return to work, the Social Security Organisation (Socso) will amend its act to enable grants matching 80% of the insured salary value. It is estimated that more than 130,000 women returning to work after giving birth will benefit from this grant involving a total allocation of RM290 million annually.
5.20pm: Technical and vocational education and training (TVET) will be improved by having major industry players provide jobs for TVET graduates at decent wages, to ensure they receive a salary of more than RM2,000. This model will see a lead company partially or fully take over the operation of TVET institutions and revamp training programmes so that they meet industry needs.
5.19pm: The government aims to swiftly complete repairs for 400 dilapidated clinics and 380 schools with an allocation of RM1.2 billion, says Anwar.
5.10pm: New laws the government intends to study and introduce are an act to protect consumers who pay on credit, and another on free legal representation for those involved in crimes but cannot afford lawyers’ fees.
5.09pm: To curb online scams, BNM will introduce a “kill-switch” policy for all banking institutions. Account holders can immediately freeze their accounts and ATM cards if they detect suspicious activity.
5.08pm: On protecting children, the PM says fighting child pornography will come under a new special unit under the police force’s D11 division, while the Women, Family, and Community Development Ministry will create a new Child Development Department.
5.06pm: People who are declared bankrupt are entitled to second chances.
“The government will amend the Insolvency Act 1967 so that bankruptcy cases can be released automatically in a short time.
“Pending the amendment, small cases that owe less than RM50,000 who meet the conditions will be released immediately starting March 1.
“The government aims to release 130,000 people from bankruptcy with the passing of the amendment.
“As of January, more than 260,000 bankruptcy cases have been recorded, and these cases involve the youth, and the majority of whom are Malays who have the potential to contribute to the national economy,” said Anwar.
5.02pm: On public infrastructure, RM2.7 billion is allocated for maintenance of federal roads, RM300 million for G1 to G4 contractors doing minor maintenance works, and RM1.5 billion for upgrading and building new roads in rural areas. Another RM50 million ringgit will be allocated for street lighting in accident-prone road stretches.
5pm: Government agencies will continue to provide loan facilities and financing guarantees up to RM40 billion, of which RM1.7 billion will be disbursed by Bank Negara (BNM), Bank Simpanan Nasional (BSN), and Tekun.
Of this, RM300 million is allocated for micro businesses run by women and youth, RM1 billion from BSN for micro businesses and traders, and RM330 million from Tekun to assist youth in small businesses.
The government has agreed to pay for driving tests for motorcycle B2, taxi, bus, and e-hailing licences.
4.54pm: A bill for a Government Procurements Act will be revived. This unity government will also table amendments to the Whistleblower Protection Act this year as part of efforts to curb corruption, says Anwar.
4.53pm: For greater transparency in government procurements, the government has cancelled flood mitigation projects worth RM15 billion and RM7 billion worth of projects under Jana Wibawa – which were all awarded through direct tender. After they are re-tendered, the government expects to save RM3 billion ringgit, says the PM.
4.51pm: As part of public sector reforms, all government agencies including the IRB, Malaysian Anti-Corruption Commission, and police are investigating corruption allegations – including names linked to the Pandora Papers. The IRB is also investigating those with unusual wealth, says Anwar.
4.50pm: From 2024, shariah savings in EPF will be segregated and no longer invested with conventional savings.
4.48pm: A shipping port at Sanglang, Perlis will be built to improve the state’s economy, while the government also supports a private sector project to build a port at Pulau Carey, Selangor, which will help improve Port Klang’s standing as a Southeast Asian shipment hub.
4.46pm: Malaysia Airports Holdings Bhd will spearhead plans to expand and improve Penang International Airport and Subang Airport. This is more cost-effective than building a new airport in Kulim – which would cost RM7 billion, says Anwar.
4.44pm: To attract investments from Covid-19-affected companies, tax incentives will be extended to manufacturers that move operations to Malaysia, while a 15% tax rate will be given to C-suites until 2024.
4.43pm: For the assessment year 2023, the taxable income for small and medium-sized enterprises and micro businesses for the first RM150,000 will be reduced from 17% to 15%.
4.38pm: The PM says the government could have saved RM2 billion from the RM15 billion previously allocated for flood mitigation – had the projects been awarded by tender. Six flood mitigation projects will be re-tendered by June to avoid wastage: in Johor, Klang, and Kelantan.
4.37pm: The Inland Revenue Board (IRB) and Customs Department will implement a programme for self-declaration of unpaid tax – where a 100% penalty waiver will be granted between June 1, 2023 and December 31, 2024.
4.34pm: Half of the proceeds of the Generational Endgame excise duty will be re-allocated to the Health Ministry, says the PM.
4.33pm: Anwar says the government supports a proposal for excise duty on vapes, gels, and nicotine-based liquids used in e-cigarettes.
4.30pm: In line with international best practices, the government will study the introduction of a capital gains tax – at a low rate – for the disposal of unlisted shares by companies from 2024. The government will hold an engagement session with relevant stakeholders.
4.28pm: The government plans to implement a luxury tax this year for high-priced items, such as luxury watches and fashion.
4.25pm: Now is not the right time to implement a Goods and Services Tax, says the PM.
4.25pm: The T20 segment makes up 80% of Employees’ Provident Fund (EPF) contributions, says Anwar.
4.17pm: Budget 2023 will allocate RM388.1 billion for spending, of which RM289.1 billion is for operation expenditure and RM99 billion for development expenditure.
4.16pm: National food inflation stood at 5.8% in 2022, says the PM.
4.15pm: Revenue for 2023 is projected to be RM291.5 billion compared to RM294.4 billion last year, says Anwar.
4.16pm: The economy is expected to grow moderately at 4.5% in 2023 compared to the initial forecast of 4-5%, and in contrast to 8.7% in 2022, says the PM.
4.08pm: The national debt will hit RM1.5 trillion or more than 60% of gross domestic product for 2023, says the prime minister.
4.05pm: The allocation under Budget 2023 has been revised upwards to RM386.14 billion from RM372.3 billion in October 2022, according to the Updates on Economic & Fiscal Outlook and Revenue Estimates for 2023 Report.
4pm: The tabling of Budget 2023 has started, with the theme “Developing Malaysia Madani”.
3.53pm: Anwar has arrived at Parliament.
3.20pm: Prime Minister Datuk Seri Anwar Ibrahim is leaving the Finance Ministry with the Budget 2023 document for its tabling at Parliament today.
He is seen using a file bag with a Sarawak songket motif.
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