[LIVE] Budget 2023: goodies galore for civil servants

KUALA LUMPUR – Budget 2023 is now being tabled by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

The highly anticipated supply bill, tabled amid speculations that a snap general election will be called soon, is expected to continue the government’s efforts to ensure momentum for economic recovery, cater to the people’s welfare and give businesses a boost following the Covid-19 pandemic.

Putrajaya will also have to manage the country’s fiscal deficit amidst a burgeoning increase in subsidy bills.

The Vibes brings you live highlights of the budget, themed Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia.

6.35pm: RM2.6 billion allocated for commodity management under Felda, Felcra, and Risda.
RM315 million allocated to replace depleted rubber trees for the benefit of 387,000 smallholders.
RM1.5 billion to implement projects for rural roads and 500km of roads connecting villages, benefiting over 110 thousand residents.
RM6.3 billion for development projects in Sabah, and RM5.4 billion for Sarawak.
RM700 million for Jendela in 2023 to connect 47 industrial areas and almost 3,700 schools.
RM3 billion for Green Tech Financing Scheme until 2025.
Exemption on import and excise duties for complete built-up electric vehicles extended to December 31, 2024.
RM1.3 billion for Digital Nasional Bhd to expand 5G networks nationwide.
RM216 million to improve, clean, and treat rivers nationwide.
RM100 million for Yayasan Hasanah to spearhead community initiatives in income generation, education, and health screenings.
RM5 million for Program Diplomasi Bahasa dan Budaya to uphold Bahasa Malaysia worldwide.
RM10 million to protect and uphold other languages and cultures, especially at the community level, such as Kadazandusun and Thai.

6.24pm: RM102 million for digital content funding that will support art practitioners with marketing.
RM145 million for maintenance, upgrades, and the building of sports facilities.
Special Aidilfitri Financial Aid 2023 increased to RM600 and will be paid out in March 2023, along with the RM100 special additional salary and RM700 special financial aid payments.
The total additional expenditure amount for each eligible civil servant in 2023 is RM2,500.

6.20pm: RM1.5 billion allocated for RM100 special additional salary increase for all civil servants from Grade 11 to Grade 56.
RM100 million allocated for local strategic investment funds. The government will extend tax cuts up to RM1.5 million on listing expenditures in the ACE and LEAP market until assessment year of 2025.
RM1.3 billion allocated for special financial aid – RM700 for 1.3 million civil servants Grade 56 and below, as well as RM350 for one million civil service pensioners. 

6.10pm: Financing rate reduced from 4% to 2% for computer and smartphone financing scheme for civil servants, now including smartwatches.
Maximum rate for replacement time-off (RTO) that can be collected for the purpose of cash award is increased to 180 days from previous 160 days with an estimated financial implication of RM100 million per year.
50% early RTO redemption is increased up to a maximum of 90 days.
Additional RTO for civil servants in the education sector who have served more than 10 years from 5 days to 15 days, benefitting 500,000 teachers.
RM364 million allocated for research and development under Higher Education Ministry and Science, Technology and Innovation Ministry.

6.03pm: RM2 billion allocated to build a dual-function reservoir as a strategy to mitigate floods as well as to store untreated water supply.
RM47 million allocated to the Malaysian Armed Forces to face any disasters. Two field hospitals are to be built in Kluang and Kota Kinabalu.

5.56pm: RM15 billion allocated for flood prevention plans until 2030 for long-term strategy to ensure the country adapts to inevitable climate change. 
RM250 million allocated as Dana Mudah Cara Infrastruktur (infrastructure facilitation fund) to support public-private partnerships.
RM500 million allocated for additional phase of integrated river basin project in Sg Golok, Kelantan.
RM400 million allocated to Nadma to enable immediate aid in case of year-end flooding.

5.50pm: Baucar Perlindungan Tenang (calm protection voucher) will benefit 3 million BKM recipients through a cost-sharing method and its use is extended for the purchase of flood disaster protection products for residential homes.
MyWira programme will give 50% discount on public transportation under Prasarana for 21,000 ATM veteran card holders and police pensioners.
RM1 billion allocated for BNM Agrofood Financing Scheme. This expenditure allows SMEs to increase the production of agrofood.
RM700 million for flood mitigation plans. 
RM562 million for the sabo dam projects in 46 locations across Malaysia to reduce floods caused by water heads and mud floods.5.44pm: Import duty and sales tax exemption for nicotine replacement therapy to encourage rakyat to stop smoking.
RM80 million allocated for Skim Peduli Kesihatan (health awareness scheme) for B40, including diabetes screening.
RM734 million allocated for MySalam programme, which will benefit 1.5 million rakyat categorised as B40, including 500,000 individuals who receive Covid-19 compensation.
RM17.4 billion allocated to the Defence Ministry.

5.40pm: RM36.1 billion budget allocation for the Health Ministry.
RM4.9 billion to upgrade public health sector capacity by 12% compared to 2022.
RM1.8 billion allocated to build hospitals, clinics, new facilities, as well as to obtain medical equipment.
RM420 million allocated to repair hospitals and clinics in poor conditions, as well as to replace old equipment.

5.35pm: RM9 billion guaranteed limit through Syarikat Jaminan Pembiayaan Perniagaan to ease SMEs in getting funding.
RM500 million for BNM tourism expenditure.
RM25 million allocated for incentives to rakyat for supporting the local tourism industry. This includes discounts, vouchers and rebates up to RM100.

5.30pm: RM1.8 billion allocated for subsidies and incentives for farmers and fishermen.
RM256 million funding for monsoon season aid – RM800 for small-time rubber farmers, benefitting 320,000 small-time farmers.
RM228 million aid for paddy farmers which will benefit 240,000 beneficiaries.
Tax cut for those earning taxable income over RM100,000 for the first 17% to 15% for micro, small, and medium enterprises.
RM1 billion allocated for one-off grants worth RM1,000 for all registered micro, small, and medium enterprises as well as registered taxi drivers. This will benefit 1 million recepients.
RM45 billion funding to encourage entrepreneurship within Keluarga Malaysia (Semarak Niaga Keluarga Malaysia).
RM1.7 billion for micro-loans and business facility for micro or small businesses.
RM10 billion in BNM funds allocated for SMEs for automation, digitalisation, tourism, and agriculture.

5.14pm: RM3 billion as government assurance through Syarikat Pinjaman Kredit Perumahan (SJKP) which will help 12,000 loan takers.
Cost of living allowance for Public Service Department increased to RM100 for students and officers in the country.
RM209 million subsidy for air transportation to rural Sabah and Sarawak.
My50 monthly pass initiative for public transportation users which will benefit 180,000 people.
RM305 million allocated to Orang Asli to aid in social and living standards improvement.
RM1 billion allocated for the elderly and ageing community.
RM1.2 billion allocated for people with disabilities (PWD) – including caretaking of chronic patients, PWD unemployment allowance, and disabled worker allowance. 
RM10 million for PWD transportation vouchers through e-hailing services.

5.05pm: Finance minister says maximum cap for ASB investment has increased from RM200,000 to RM300,000, with low financing for B40 groups via BSN.
RM3.8 billion is allocated for scholarships and education loans.
TVET initiatives to receive RM6.7 billion through National TVET Council.
PTPTN loan repayment exemption for students who graduated with a first-class degree.

4.59pm: RM55.6 billion allocated for the Education Ministry, the biggest allocation to date, compared to Budget 2022 at RM52.6 billion.
RM825 million allocated for Early Schooling Aid, now at RM150 per student compared to previous RM100, regardless of parents’ income.
RM777 million for additional food programme (RMT) to ensure students receive good daily nutrition, benefitting 800,000 students.
RM1.1 billion allocated for reparations and restoration of schools.
RM1.2 billion allocation to upgrade school building and infrastructure for those in poor condition, specifically in Sabah and Sarawak. 

4.51pm: RM55 billion for subsidies, aids, and incentives to support the rising cost of living.
RM200 million allocated to accommodate transportation and distribution costs for basic needs like rice, cooking oil, LPG gas, petrol, and diesel for rural residents.
RM150 million allocated for salary incentives under Socso. RM600 to RM750 will be given every month to vulnerable groups over the course of three months.
MyStep initiative will be continued with 50,000 career opportunities offered in the public sector and GLCs.

4.44pm: RM400 million allocated for ePemula programme. RM200 one-off e-wallet credit for youths between 18 to 20 years old, and full-time students over 21 years old.
PTPTN loan repayment discount up to 20% remains.

4.40pm: RM3,000 tax exemption on kindergarten and nursery fees until 2024.
RM305 million allocated for financing youth entrepreneurs.
RM500 will be given as a one-off cash aid for mothers under BKM households who give birth in 2023.

4.36pm: Budget 2023 will allocate RM11 million to increase screening for cervical cancer through mammogram subsidies.
RM235 million allocated to help finance women entrepreneurs.
Tax exemption for women on income received under 2023 until 2028 assessment to encourage more women to return to the workforce after a “career break”.

4.28pm: M40 e-Pemula initiative: e-wallet credit worth RM100 will be given to the M40 income group receiving under RM100,000 annually. This will benefit 8 million individuals.
The finance minister has also announced that personal income tax will be decreased by 2 percentage points.
Taxable income bracket between RM50,001 to RM70,000: down from 13% to 11%.
Taxable income bracket RM70,001 to RM100,000: down from 21% to 19%.

4.26pm: The fiscal deficit is expected to reduce to 5.5% of GDP in 2023 from 5.8% in 2022.
RM1 billion is allocated for eradicating hardcore poverty in Keluarga Malaysia and to provide economic opportunities for 50,000 households categorised within the category.

4.20pm: Budget 2023 allocates RM272.3 billion for management expenditure, RM95 billion for development, RM5 billion under the Covid-19 Fund and RM2 billion as unexpected savings.
The Budget also includes the highest one-off aid at RM2,500 for households with over five children or with income lower than RM2,500 per month.
Besides that, RM10 billion is allocated for cash aid for the Social Welfare Department and Keluarga Malaysia Aid.

4.12pm: Services sector is expected to be the main contributor to 2023 GDP growth, which is anticipated to expand by 5.0% in 2023. Meanwhile, the economy is expected to grow moderately between 4.0 and 5.0% in 2023 versus 6.5 to 7.0% in 2022.
Federal government revenue is expected to decrease by 4.4% in 2023 to RM272.57 billion from a growth of 22.0% (RM285.22 billion) in 2022.

4.09pm: According to the finance minister, the top three recipients of Budget 2023 are the Finance Ministry (RM67.2 billion), Education Ministry (RM55.6 billion), and Health Ministry (RM36.1 billion), constituting 43.3% of total expenditure. – The Vibes, October 7, 2022