Economy and investments

• GLCs and GLICs to allocate RM1.5 billion to support startups involved in high-growth, high-value areas.
• RM100 million for the Malaysia Co-Investment Fund scheme (MyCIF) over three years to support initiatives related to the environment, society, food security and the state Islamic religious councils.
• RM20 million to support research in the innovation of the Islamic economy.
• RM30 million to draw investments from video game companies.
• RM28 million to set up MYStartup as a one-stop centre to support startups.
• RM10 million for MyCC and domestic trade and cost of living ministry to fight profiteering.

Development and utilities

• RM2.8 billion to repair federal roads and bridges.
• RM2.47 billion to build people’s housing projects.
• RM2.4 billion for the construction and maintenance of government quarters.
• RM1.63 billion to build and upgrade roads in rural areas in Kelantan, Perlis, and Negeri Sembilan.
• RM1.1 billion to resolve water supply issues in Kelantan, Sabah and Labuan.
• RM939 million to supply water to 5,150 homes and electricity to 2,200 homes.
• RM150 million to maintain and repair public toilets nationwide.
• RM50 million in matching grants to maintain Port Klang roads.
• RM30 million for district engineers for minor repairs and maintenance of federal roads. Each engineer will be allocated RM200,000.
• RM20 million for 150 local councils to maintain and repair drainage.

Subsidies

• Diesel subsidy to be rationalised in phases.
• RM55 million for electricity subsidies of up to RM40 a month for the hardcore poor.
• Government to continue rationalising electricity subsidies.
• Targeted subsidies will be implemented in stages, with savings going towards a bigger allocation for Rahmah cash aid. The allocation for this initiative will be increased from RM8 billion to RM10 billion.

Taxes

• Service tax to be increased from 6% to 8%. This will not apply to the food and beverage as well as telecommunication industry.
• Putrajaya will enact a law to facilitate the collection of a 5% to 10% luxury tax. It will not apply to foreign tourists.
• 10% capital gains tax to be introduced from March 1. This applies to the sale of shares for non-listed local companies.
• The government is mulling a capital gains tax on profits from specific stock market activities, including IPOs.
• Government expects to implement a global minimum tax in 2025, on companies with a global income of at least 750 million euros.
  Mandatory use of e-invoice for taxpayers with annual income or sales over RM100 million from Aug 1, 2024.
• Government to improve stamp duty collection, strengthen tax administration, widen social protection coverage, and restructure development financial institutions (DFIs).
• Tax incentives to attract investments in the form of tiered investment tax allowances of either 70% or 100%.
• Special tax incentives for investments in Pengerang Integrated Petroleum Complex (PIPC).
• Tax incentives for those investing in startups and angel investors until Dec 31, 2026.
• Tax incentives for women who return to the workforce extended to Dec 31, 2027.
• Tax exemption for those involved in Islamic securities selling and buying.
• Five-year tax exemption for Labuan companies involved in Islamic finance.
• The RM2,000 tax break for upskilling courses is extended until 2026.
• This incentive now also covers language, photography and sewing courses.
• The government offers an income tax rate of up to 10% for film production companies, foreign actors, and crew who film in Malaysia.
• Government to increase income tax exemption ceiling from RM2,400 to RM3,000 for childcare allowances.
• 4% stamp duty for property transfers by non-citizens and foreign firms. This doesn’t include permanent residents.

Education

• RM58.7 billion for the education ministry.
• RM1.9 billion to upgrade schools.
• RM2.5 billion to build 26 new schools in Sabah, Sarawak, Pahang, Perak and Kelantan.
• RM180 million to construct 18 new special education blocks in schools in Kedah, Penang and Perlis.
• RM150 million to expand aid for poor students up to Form 3, compared to up to Form 1 previously. This will benefit one million students.
• RM100 million to upgrade and maintain computer labs in schools.
• RM100 million for students who dropped out of school amid the pandemic.
• RM82 million to build 26 new pre-schools under the education ministry in Sarawak, Pahang, Melaka.
• RM30 million to provide disabled students with special devices and facilities.

Higher education

• RM16.3 billion for higher education.
• RM250 million to improve WiFi access in all public varsities.
• RM300 million to improve infrastructure in local universities.
• RM5 million to support 5,000 students to access life-long learning programmes in community colleges.
• RM20 million to set up the country’s first AI facility in Universiti Teknologi Malaysia.
• Government to give between 10% to 15% discount on PTPTN loans.
• Entrance fees for public varsities are capped at RM1,500.
• Students who cannot afford to pay their tuition fees will not be barred from registering for courses.

Health

• The health ministry allocated RM41.2 billion.
• RM5.5 billion was allocated for medicines and vaccines.
• Over RM1 billion to build new development projects in various hospitals in Johor, Kelantan, and Selangor.
• The government will support Sarawak’s plans to develop its own cancer institute.
• RM766 million to replace medical equipment which is deemed “beyond economic repair”.
• RM300 million to repair 400 dilapidated health clinics.
• RM200 million to outsource treatment to private hospitals.
• RM150 million to maintain IT systems under the health ministry, including the Clinic Management System Subscription (CCMS) at 100 government health clinics.
• RM130 million for health screenings and vaccinations for pregnant women.
• RM100 million to expand Madani medical scheme nationwide, to benefit 700,000 people.
• The government increases the sugar tax from 40 sen a litre to 50 sen a litre.
• Government to impose 5% excise duty on chewing tobacco.

Security

• RM19 billion for the home ministry.
• RM20 million set up a single border agency.
• An additional RM10 million to help Malaysians who fall victim to overseas syndicates.
• An additional RM10 million to support the National Scam Response Centre.
• Bank Negara Malaysia to develop a national fraud portal by mid-2024.
• More security assets to be deployed at maritime borders.
• Government to strengthen measures to combat smuggling of contraband.

Defence

• RM19.7 billion for the defence ministry.
• Government to start the procurement process for 12 new military helicopters, 60 armoured vehicles, 50 light tactical vehicles, six hovercrafts, 733 support vehicles, seven light police aircraft, and five police helicopters.
• RM400 million to maintain and repair family homes of servicemen.
• RM20 million to upgrade the sewerage system in army camps in phases.

Environment

• Financial institutions to allocate RM200 billion in loans to support industries to reduce carbon emissions.
• Tax cuts for entities that sponsor tree planting or hold environmental preservation projects.
• Up to RM1 billion sukuk issuance to support reforestation.
• RM10 million to those who suffer financial losses caused by wild animals.
• RM60 million to increase the number of community rangers to protect permanent forest reserves against loggers and poachers.
• RM200 million for the Ecological Fiscal Transfer for Biodiversity Conservation.
• Up to RM300,000 in tax cuts for companies spending on measurement, reporting and verification of carbon projects.
• RM563 million to rehabilitate over 2,000 high-risk slopes nationwide.

Social welfare

• RM10 billion for the Rahmah cash aid programme. This will benefit nine million people or 60% of Malaysian adults.
• The maximum Rahmah aid is increased from RM3,100 to RM3,700, while the minimum amount for youths has been increased from RM350 to RM500.
• The government is to expand the Sumbangan Asas Rahmah programme by crediting RM100 each month for a year to 700,000 Rahmah aid recipients.
• RM2.4 billion for the welfare department. This will benefit 450,000 people, including the hardcore poor, elderly, children and the disabled.
• RM1.2 billion in various aid for the disabled.
• RM1 billion to ensure the welfare of the elderly.
• Eligibility for welfare aid has been revised in line with the new poverty line of RM1,198 a month.
• RM500 million for the expansion of the IPR programme.
• RM200 million to continue the Payung Rahmah programme.
• RM100 million for Amanah Ikhtiar Malaysia to eradicate poverty.
• RM100 million to support NGOs helping the rakyat.
• RM10 million for a second chance programme for ex-convicts.
• Allowances for disabled trainers raised to RM300 from RM150.
  Proceeds from the sale of special number plates will be channelled to the less fortunate. This includes test fees for motorcycles, e-hailing and taxis.
• A new EPF account known as the “Flexible Account” will be introduced. This new account can be accessed by contributors at any time.
• RM50 million for a social security scheme for housewives. This will benefit 400,000 women registered under e-Kasih.
• 35,000 children to benefit from the expansion of the Biasiswa Kecil Persekutuan programme, including households earning less than RM2,589 a month.
• RM1,000 in incentives for pensioners, including veterans without pensions. This will be paid in February

Jobs and community support

• RM6.8 billion for TVET.
• RM1 billion for the Madani community development programme for grants of up to RM100,000 for community initiatives.
• RM586 million for the community development department (Kemas).
• RM100 million to support TVET certification.
• RM180 million in TVET study loans. This will benefit 12,000 people.
• RM100 million for Chinese New Villages.
• RM100 million for cooperatives through the Cooperative Commission of Malaysia.
• HRD Corp to use 15% of levies collected for retraining and reskilling of entrepreneurs, ex-convicts, the disabled, senior citizens and retirees.
• RM70 million for the Academy in Industry programme to support skills training.
• RM50 million for registered non-Muslim houses of worship.
• RM35 million for training and income replacement incentives for 9,000 gig workers.
• RM30 million in incentives for companies to train locals.
• RM31 million for 10 new tabika and taskas in Terengganu, Negeri Sembilan and Johor.
• RM20 million to upgrade Kemas pre-school premises.
• RM20 million for Rukun Tetangga.
• RM20 million in grants for local communities to organise volunteering, unity, and crime prevention programmes.
• Socso to provide a special incentive of RM1,500 a month for six months to support over 3,300 job seekers. RM30 million is allocated for this initiative.
• The government is to introduce the Madani Foster Village programme, which will involve GLCs, GLICs and the private sector.
• The salary ceiling to qualify for the occupational hazard scheme increased from RM4,000 to RM6,000.

Rural communities

• RM26 million for social initiatives for those in rural areas. This includes mobile health and dental clinic services as well as mobile court services.
• RM333 million for Orang Asli. This includes entrepreneurship and replanting programmes.
• RM96 million to support shuttle bus services in rural areas.

Civil Service

• A review of civil servants’ salary scheme will be finalised by the end of 2024.
• In the meantime, RM2,000 in preliminary incentives is to be distributed to civil servants in Grade 56 and below, including contract workers.
• Uniformed personnel to receive RM1,000.
• RM1,000 in incentives for pensioners, including veterans. This will be paid in February.

Transport

• Prasarana to spend RM600 million to procure 150 electric buses and three new bus depots to support LRT3.
• RM209 million to subsidise rural air transport in Sabah and Sarawak.
• RM150 million for bus transformation programme.
• RM134 million to install 60,000 streetlamps and maintain over 500,000 streetlamps on rural roads.
• RM100 million to change streetlamp bulbs to LED bulbs.
• RM50 million for local councils to switch to LED streetlamps.
• RM50 million to install smart traffic lights in congestion and accident-prone areas.
• RM47 million to improve passenger facilities and extend the runway at the Tioman airport.
• RM20 million in matching grants to upgrade the Malaysia Maritime Single Window (MMSW).
• RM2,400 in rebates for those earning less than RM120,000 a year who purchase electric motorcycles.
• Government to extend RM2,500 tax exemption for EV charging expenses.
• 100,000 child helmets to be distributed to poor families.
• RM4.7 billion to resume the construction of 5 LRT3 stations that were previously cancelled, namely the Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanic stations.

Commodities

• The government to expand tax incentives for automation to cover the commodities sector.
• RM2.4 billion for Felda, Felcra and Risda.
• RM400 million to increase rubber production incentive from RM2.70 per kg to RM3 per kg.
• RM100 million for palm oil replanting. This will benefit 7,000 smallholders.
• RM90 million for Risda and Felcra to encourage settlers to optimise land use.
• RM70 million to support palm oil industry sustainability programmes.

Industries and businesses

• Miti and MIDA to improve ease of doing business.
• RM200 million to catalyse the New Industrial Master Plan (NIMP) 2030. 10% of future investments under NIMP will also be utilised for this purpose.
• Government to develop a high-tech industrial park in Kerian, Perak.
• RM1.6 billion in loans and guarantees for Bumiputera entrepreneurs.
• Bumiputera investment institutions will be centralised under Yayasan Pelaburan Bumiputera.
• RM25 million in matching grants to produce more entrepreneurs under the i-TEKAD initiative.
• RM10 million to support franchises with export markets.
• RM40 million to support the Shop Malaysia Online programme.
• RM27 million to support the Buy Malaysian campaign.

SMEs and micro businesses

• RM44 billion in loan and financing facilities for micro SMEs. This includes RM1.4 billion for microloans from BSN, RM330 million in loans from Tekun Nasional, RM720 million for women and youth entrepreneurs and RM30 million for Indian businesses.
• RM20 billion for Syarikat Jaminan Pembiayaan Perniagaan Berhad to guarantee loans for SMEs involved in the green economy, technology and halal sectors.
• RM900 million for loans from BNM to help SMEs digitalise and automate.
• RM110 million to upgrade hawker centres and public markets across the nation.
• RM100 million to support the digitalisation efforts of 20,000 SMEs.
• RM50 million to develop 4,000 new trading spaces. These traders will be given six months of free rent.
• RM10 million to upgrade 10,000 food stalls and warungs nationwide.

Agriculture and food security

• The price ceiling for eggs and chicken will be lifted.
• The government to increase the floor price of padi to RM1,300 per metric tonne to support farmers.
• RM3 billion for a pilot project to increase padi harvest in Perak, Perlis and Kedah.
• RM2.6 billion in subsidies and incentives for fishermen and padi farmers.
• Agrobank to provide up to RM430 million in loans to support the productivity of farmers.
• RM400 million to support food security programmes.
• RM50 million in subsidies to increase Padi production in hillsides.
• RM50 million seed fund for padi farmers under Skim Takaful Tanaman Padi. This will benefit over 240,000 farmers.
• RM50 million to compensate farmers and fishermen affected by natural disasters.
• RM10 million to build new homes for fishermen.

Tourism

• The next Visit Malaysia Year has been set for 2026. The government is targeting 26.1 million tourist arrivals.
• RM350 million to support efforts to promote Malaysia as a top tourism destination. This includes the Visit Malaysia 2026 campaign, aid for cultural performances, matching grants for charter flights and to support for Islamic tourism.
• RM20 million to upgrade and maintain selected tourism sports including those in Perlis, Pahang and Negeri Sembilan.

Arts and Culture

• RM160 million to support the creative industry. This includes funds to support local films.
• RM80 million for the conservation and preservation of UNESCO heritage sites, including those in Sarawak, Kedah and Perak.
• RM50 million for government agencies to promote arts and culture.
• RM20 million for Think City to preserve Kuala Lumpur’s cultural heritage.
• RM10 million to support cultural activities in Sabah, Sarawak, Perak, and Terengganu.
• 10% reduction in entertainment duties for international acts.
• 5% reduction in entertainment duties for theme parks.
• Local artists will not be subject to entertainment duties.
• Government to revise entertainment duties in Federal Territories.

Youth and sports

• Government to expand bankruptcy scheme to support youths with debts of less than RM200,000.
• RM20 million for Rakan Muda programme.
• RM500 reward for youths who volunteer with bodies recognised by Putrajaya.
• RM72 million to improve the ecosystem for elite athletes. This includes RM20 million for the Road to Gold Olympic programme.
• RM12 million for the National Sports Council to support the training of athletes.
• Up to RM1,000 tax exemption for purchase of sporting goods. This is extended to training fees.

Sabah and Sarawak

• RM5.8 billion for Sarawak and RM6.6 billion for Sabah.
• The government is negotiating the handing over of the Bintulu Port and the operation of the rural air space to Sabah and Sarawak.
• Government to support the implementation of a hybrid solar energy project in southern Sabah.

Disaster management

• RM11.8 billion for 33 flood mitigation projects in Pahang, Selangor, Negeri Sembilan, Sabah, Sarawak, Kedah and Kelantan.
• RM300 million for NADMA to prepare for floods.
• RM200 million to build nine permanent relief centres and to repair facilities at 1,500 temporary relief centres.

Islamic Affairs

• RM1.9 million for Islamic affairs. This includes RM220 million to build two new Islamic education institutions in Kuala Lumpur and Negeri Sembilan.
• RM500 million in loans for those looking to develop wakaf lands nationwide.
• RM17 million for tahfiz TVET programme.
• The government restored RM20,000 in aid for all Sekolah Agama Rakyat registered under Jakim. This was ceased in 2003.
• The faster halal certification process, from 51 days to 30 days.

Laws and legal reforms

• RM38 million to upgrade courts and train more judges.
• RM18 million for legal reforms.
• Government Procurement Act to be tabled next year.
• Amendments to the Drug Dependants (Treatment and Rehabilitation) Act 1983.
• Government to introduce a visa liberalisation plan, including easing employment pass approvals for strategic investors in primary sectors.
• Putrajaya will also introduce an extended social visit pass for foreign students who have completed their studies, to boost the supply of skilled workers.
• Visa-on-arrival processes will be eased while multiple entry visas will be offered to tourists and investors from India, China and the Middle East.
• Relaxation of Malaysia My Second Home (MM2H) programme.

Others

• RM10 billion for housing credit guarantee, to benefit 40,000 borrowers.
• RM546 million for maintenance of 36 PPRs.
• RM2 billion to support the National Energy Transition Roadmap (NETR).
• RM510 million for R&D under the science, technology and innovation as well as higher education ministries.
• RM76 million to support the R&D ecosystem.
• RM60 million to develop a 5G cybersecurity framework and local expertise.
• RM5 million to improve facilities for the fire and rescue department, police and customs department’s K9 units.
• Government to set up STEM special task force.
• RM10 million in humanitarian aid for Palestine.

Ministerial allocations

• Education Ministry receives the highest allocation of RM55.2 billion, up from RM52.6 billion in 2022.
• Health Ministry receives the second-largest allocation of RM36.3 billion, up from RM32.4 billion last year. Mostly to buy medicine, reagents, vaccines and consumables, while RM3 billion will be set aside for new permanent positions and the appointment of over 1,500 contract medical officers, contract dentists and contract pharmacists.
• Higher Education Ministry gets RM15.3 billion, up from RM14.5 billion in 2022.
• Home Ministry gets RM18.5 billion; RM4.1 billion to maintain and procure military assets, including littoral combat ships.
• Defence Ministry gets RM17.7 billion, including RM1 billion to enhance domestic security such as acquiring 2,100 body cameras for police, and RM450 million for new police headquarters and police quarters in Perak.

New and restructured taxes

• No Goods and Services Tax (GST) but the government will tax those with the means to pay via:
  * Luxury Tax on items such as watches and fashion goods;
  * excise duties on liquid nicotine used in e-cigarettes and vapes.
• The government may introduce a capital gains tax on the sale of shares in private companies in 2024.
• Income tax on those earning more than RM100,000 to RM1 million will be raised by 0.5 to two percentage points, affecting fewer than 150,000 taxpayers.
• Income tax on that earning between RM35,000 to RM100,000 will be lowered by two percentage points, resulting in additional disposable income of RM1,300 for about 2.4 million taxpayers.
• Individuals or companies donating to non-profits undertaking grassroots sports development programmes will qualify for a tax cut of up to 10% on aggregate income.
• Tax relief of up to RM3,000 for voluntary contributions to the Employees Provident Fund (EPF) account.
• Under a special voluntary disclosure programme from June 1, 2023, until May 31, 2024, the govt will provide a 100% waiver on additional taxes for taxpayers who declare unreported taxes.
• Tax relief on medical treatment raised to RM10,000 from RM8,000, including relief of up to RM4,000 on treatments for conditions such as autism, Down syndrome and specific learning disabilities.

Digitalisation and automation 

• RM1 billion in funds under Bank Negara Malaysia (BNM) to help micro, small and medium enterprises (SMEs) automate their processes to digitalise their businesses.
• RM100 million under the SME digitalisation scheme will be used to fund matching grants of up to RM5,000 to SMEs subscribing to apps to digitalise their businesses, such as point-of-sales systems, accounts or inventory management.
• Govt to provide RM50 million in matching grants to encourage automation of the plantation sector through the use of robotics and artificial intelligence.
• Govt to accelerate the implementation of the Jendela project as a national effort to provide internet network facilities.
• RM725 million to implement digital connectivity in 47 industrial areas and nearly 3,700 schools.

Grants and incentives to spur SME growth, drive domestic investments

• Syarikat Jaminan Pembiayaan Perniagaan to guarantee up to RM20 billion in loans from SMEs, with a government guarantee of up for 90% for companies in frontier tech, agriculture and manufacturing.
• Investment incentives will be restructured towards tiered taxes based on outcomes, such as creating high-value jobs, including local firms in the supply chain and creating new industry clusters.
• Khazanah Nasional and EPF to invest in innovative and high-growth local start-up companies with an investment value of RM1.5 billion.
• Tax deduction of up to RM1.5 million for firms that list on Bursa Malaysia’s ACE and LEAP Markets until the assessment year 2025; tax rebate also extended to tech companies that list on the Main Market.
• RM100 million under Digitisation Grant Scheme for SMEs and small vendors to support business automation and digitisation; separately, there is an RM1 billion facility under BNM aimed at incentivising SMEs to automate processes and digitalise operations.
• For Malaysia’s electrical & electronics (E&E) and aerospace sectors, govt plans to:
  * extend tax incentives to manufacturing companies that transfer their operations to Malaysia, as well as a 15% tax rate for C-suite executives until  2024 to attract investment from companies affected by Covid-19;
  * extend income tax incentives, as well as investment tax allowances to the aerospace sector until Dec 31, 2025, to encourage capacity expansion of existing companies and attract investment from new companies;
  * strengthen the development of Iskandar Malaysia in Johor via the creation of a special financial zone and competitive remuneration package to attract international investors and skilled workers to settle in Malaysia;
  * RM6 billion strategic financing by Bank Pembangunan Malaysia to promote a sustainable and automation agenda.

Alleviating the people’s burden

• Govt to give Aidilfitri Special Financial Assistance of up to RM700 to all civil servants Grade 56 and below, including those on contract, and RM350 to government retirees. Payment will be made in April 2023.
• Govt to give up to 20% discount for three months on PTPTN loan repayment starting March 1.
• Govt to grant a postponement of repayment to borrowers with a monthly income of RM1,800 and below for a six-month period; application for postponement can be made from March 1.
• Govt amending Insolvency Act 1967 to enable bankruptcy cases to be discharged more quickly.
• The amendment, combined with the immediate release of cases owing less than RM50,000 starting March 1, will allow 130,000 people to be released from bankruptcy status. This will benefit the Malays, who make up the majority of the 260,000 bankruptcy cases as of January, and will allow them to contribute to the national economy.

Sabah and Sarawak

• RM6.5 billion for Sabah’s development; RM5.6 billion for Sarawak. This includes developing cities bordering Kalimantan, Indonesia, such as Kalabakan, Sabah and Ba’kelalan, Sarawak with a cost of RM1 billion.
• Separately, over RM2.5 billion is provided to implement projects, mainly involving public infrastructure for the benefit of Sabah and Sarawak, road projects and street lights, as well as water and electricity supply.

Infrastructure

• Govt to review MRT3 project cost, confident of reducing it to below RM45 billion.
• Govt to ensure Digital Nasional Bhd (DNB) is managed more transparently and inclusively to achieve full participation by telcos and provide comprehensive 5G coverage at a reasonable price. At end-2022, 5G coverage reached 50% of populated areas; targeted to reach 80% by end-2023.
• To relieve road congestion at tourist hotspots, the govt will:
  * build a new road from Habu to Tanah Rata, Cameron Highlands, Pahang for RM480 million;
  * upgrade Jalan Tun Hamzah up to the intersection of Semabok Lebuh AMJ Daerah Melaka Tengah at a cost of RM300 million;
  * build a road and a bridge over Sungai Sepang to connect Bukit Pelandok, Port Dickson and Sungai Pelek, Sepang at a cost of RM160 million; and
  * Build an overtaking lane on Senai Desaru Expressway and upgrade Lebuhraya Utara Selatan from Yong Peng Utara to Senai Utara — Phase 1, Johor from four to six lanes, in phases, at a cost of RM525 million.
• Expansion and improvement of airport capacity in Penang and Subang to encourage the entry of investors, businesses and tourists; to benefit economic growth at a much lower cost than building a new airport in Kulim, estimated at RM7 billion.
• RM1.2 billion to expedite repairs of 400 clinics and 380 schools that are dilapidated.
  RM1.5 billion to develop new rural roads and village link roads.

Encouraging investments & savings

• The total individual investment limit of Amanah Saham Bumiputera (ASB) and Amanah Saham Bumiputera 2 (ASB 2) will be increased to RM300,000 from RM200,000.
• The size of the Amanah Saham Malaysia (ASM) fund will be increased to about RM5 billion.
• 5.1% dividend for ASB members with savings of less than RM30,000, to benefit 87% of members.
• Govt to help those aged 40-54 with EPF savings of less than RM10,000 in their Account 1 by providing an additional contribution of RM500; to benefit nearly two million EPF members with an allocation of nearly RM1 billion.
• From 2024, shariah savings assets under EPF will be fully segregated to provide competitive returns to 1.25 million members holding shariah accounts.

Agriculture and food security

• Government to promote private sector investment into large-scale agriculture by providing incentives, land, funds, and technology grants.
• “Elaun Modal Dipercepatkan” and 100% income tax exemption on capital expenditure will be available, and the tax incentive application period for food production projects will be extended until end-2025, with an expanded scope to include modern agriculture projects.
  Bernas agrees to share 30% of its net profit from rice imports with rice farmers.
• Govt to give various subsidies and incentives amounting to RM1.6 billion to rice farmers. In addition, 240,000 rice farmers will receive RM200 cash per month for three months, or one season, for a total of RM228 million.
• Govt to allocate RM80 million to improve the sustainability of the palm oil industry and intensify the fight against the anti-palm oil campaign.

Strengthening oversight and institutional reforms; fight corruption

• Govt aims to enact the Consumer Credit Act and set up a consumer credit monitoring board to regulate companies providing consumer credit such as “Buy Now Pay Later” schemes this year.
• Procurement Act to be tabled to boost transparency, and increase savings.
• Review compensation packages of chief executives and senior management of statutory bodies and companies to more reasonable levels.
• Amend the Whistleblowers Protection Act to better protect informants.
• The new management of govt agencies such as Tabung Haji, Felda, and Felcra should study the possibility of closing loss-making subsidiaries not aligned with their original functions, such as travel agencies, security companies, and IT firms. Govt mulls banning companies and statutory bodies from this practice.
• All govt agencies, including the Inland Revenue Board (“Lembaga Hasil Dalam Negeri” in Malay, or LHDN in short), the MACC, and the police are actively investigating corruption, including those named in the Pandora Papers. LHDN will also continue investigating “unusual wealth” to fight corruption, rather than allow it to continue to fester.

Ending hardcore poverty

• RM30 million was set aside to increase activities that support Sustainable Development Goals (SDGs), including RM10 million to start community farm programs at the parliamentary level to promote food security.
• Govt to implement “Inisiatif Pendapatan Rakyat” (IPR) through the Economy Ministry with RM750 million allocation in 2023, to empower the poor to increase their earning potential.
• Loan facility from Bank Simpanan Nasional (BSN), BNM, and Tekun (National Entrepreneurial Group Economic Fund) worth RM1.7 billion to help micro-entrepreneurs, women, and youth.
• BSN to provide over RM1 billion with a focus on micro-entrepreneurs; Tekun to provide RM330 million, including RM10 million to help youths from poor families.

Disaster preparation, green initiatives & EVs

• Govt to re-tender six flood mitigation projects by June, potentially saving RM2 billion out of RM15 billion previously allocated for such projects.
• BNM to provide financing of up to RM2 billion to support green tech start-ups, and help SMEs implement low-carbon practices.
  Khazanah to provide RM150 million to environmentally friendly project development including supporting the carbon market and reforestation.
• Green Technology Financing Scheme (GTFS) is to be implemented with an increased allocation of RM3 billion until 2025. The scope of funding is to be widened to cover electric vehicles (EVs) with a guaranteed limit of up to 60%.
• Bank Pembangunan Malaysia Bhd will offer an RM1 billion Sustainable Development Scheme.
• The incentive period for Investment Tax Allowance (Gita) and Green Income Tax Exemption (Gite) schemes is to be extended until Dec 31, 2025, for eligible green activities.
• Import duty exemption on EV components for local assembly extended to Dec 31, 2027; excise duty and sales tax waiver on locally-assembled completely knocked down (CKD) EVs extended to Dec 31, 2027.
• 100% statutory income tax exemption for manufacturers of EV chargers from 2023 to 2032, and a 100% allowance on investment tax for five years.
• Tax breaks for companies leasing EVs, with the lease not exceeding RM300,000.

For further more information, please visit the link before:

• https://www.theedgemarkets.com/node/656811
• https://www.thestar.com.my/business/business-news/2023/02/24/budget-2023-highlights
• https://www.malaymail.com/news/malaysia/2023/02/24/budget-2023-highlights/56615

Please be informed that P.U.(A) 263/2014 Income Tax (Deduction From Remuneration)(Amendment)(No.2) RUles 2014 has been gazetted on 31 Dec 2014. Among the Statutory changes are as follow –

1. "Remuneration" means income in respect of gains or profits from an employment. Benefit in Kind (BIK) and Value of Living Allowance (VOLA) are subjected to PCB.

2. Employee shall be allowed to claim allowable deductions and rebates under the Act not less than twice in the current year by using TP1 form.

 

 

 

 

Effective from YA 2014, it is proposed that a Company is deemed to have gross income consisting of interest from loan or advances to directors.

The interest income is calculated based on the formula :-

1/12  x  A  x  B 

 

A      is the total amount of loan or advances outstanding at the end of the calendar month;

B      is the average lending rate of commercial banks published by the Central Bank at the end of the calendar month or

        where no such average lending rate, such other reference lending rate as may be prescribed by the Director General.

 

If a Company actual interest charged is higher than the total sum of deemed interest, the above formula is not applicable.