Budget 2023 highlights

KUALA LUMPUR, Oct 7 (Bernama) -- Following are the highlights of Budget 2023 tabled in Dewan Rakyat today by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Themed ‘Keluarga Malaysia, Prospering Together’, Budget 2023 involves an allocation of RM372.3 billion and will be driven by the 3R agenda - Responsive, Responsible and Reformist.

This is the second budget tabled under the government led by Prime Minister Datuk Seri Ismail Sabri Yaakob and also the second since the 12th Malaysia Plan was launched on Sept 27 last year.

• Bantuan Keluarga Malaysia (BKM) to be improved with an allocation of RM7.8 billion, to benefit 8.7 million recipients.
• BKM: New category of households with monthly income of below RM2,500 with five or more children will receive RM2,500.
• E-wallet credit worth RM100 for the M40 group with an annual income of below RM100,000 under the e-Pemula M40 initiative.
• Two percentage points cut on taxable income ranging from RM50,000 to RM100,000 for domiciled individuals.
• Tax relief of childcare fees valued at RM3,000 will be extended until assessment year 2024.
• One-off RM500 cash aid for mothers from BKM households who give birth in 2023 through the CahayaMata Keluarga Malaysia initiative.
• Employers who hire youths aged 18 to 30 who are unemployed for over three months will receive employment incentive under Socso.
• Loan facilities amounting to RM305 million will be provided through SME Bank, TEKUN, Mara, BSN and Agrobank, specifically for young entrepreneurs.
• Government to bear the cost for B40 youth to obtain taxi, bus, e-hailing licences under the MyPSV programme.
• The Pakej Remaja Keluarga Malaysia initiative to be extended until April 2023 to bridge the digital divide among youths.
• Government to bear 80 per cent of Socso’s contribution to reduce the burden of self-employed individuals.
• The limit for Employees Provident Fund (EPF) Voluntary Contribution increased to RM100,000 a year.
• EPF’s i-Saraan programme extended to 2023; matching contribution increased from RM250 to RM300.
• Amanah Saham Bumiputera (ASB) & ASB2 investment limit raised from RM200,000 to RM300,000.
• Government to allocate over RM55 billion for subsidies, aid and incentives to lower cost of living.
• RM100 million allocation to extend the Keluarga Malaysia Cheap Sales programme.
• An incentive between RM600 and RM750 for three months to employers who hire persons with disabilities (PwDs), Orang Asli, ex-convicts and women who return to work.
• Socso to provide mobility assistance of RM500 for individuals who secured a job in other states, RM1,000 for long-distance moves from Sabah or Sarawak to the peninsula, vice versa.
• Service period for MySTEP in public sector to be extended to December 2023; salary to be raised by RM100.
• Back To School Aid extended to all pupils irrespective of parents’ income.
• The Supplementary Food Programme (RMT) rate to be raised to RM3.50 in Peninsula, RM4 in Sabah, Sarawak, Labuan.
• RM2.3 billion allocation to provide conducive and safe learning space for school students, an increase from RM1.7 billion in 2022.
• Monthly cost of living allowance for Public Service Department (PSD) scholars in the country raised by RM100.
• A discount of 15 to 20 per cent for the National Higher Education Fund Corporation (PTPTN) loan repayments from Nov 1, 2022 to April 30, 2023.
• The My50 travel pass initiative to continue, to benefit 180,000 commuters.
• Foundations under government-linked companies (GLCs) to sponsor at least 10 Orang Asli children to pursue their studies overseas.
• Nearly RM1 billion allocation for the welfare of senior citizens, up from RM580 million in 2022.
• RM1.2 billion allocation for PwDs, including through allowances for those who are unable to work and disabled workers.
• RM10 billion to provide travel vouchers to PwDs through e-hailing services.
• Special incentive to set up 50 new childcare centres for PwDs; Finance Ministry to carry out PwD-friendly Call Centre pilot project.
• Aid for padi farmers to be reintroduced, monsoon season aid of RM200 a month for rubber smallholders.
• A total of RM25 million to provide incentives in the form of discounts, vouchers and rebates to encourage domestic tourism.
• RM420 million to repair dilapidated hospitals and clinics and to replace old equipment, with priority given to health facilities in rural Sabah and Sarawak.
• Tax relief of up to RM1,000 for dental treatment of self, spouse and children.
• Import duty and sales tax exemption on nicotine therapy product to encourage people to stop smoking.
• An allocation of RM25 million to cover the rising rare diseases treatment costs; MySalam and Perlindungan Tenang voucher programmes to continue.
• Additional 25 border posts to be built, including in Serikin, Sarawak and Lahad Datu, Sabah.
• RM700 million for flood mitigation projects in 2023, including to build sabo dams in 46 locations nationwide and upgrade the weather forecast system.
• National Disaster Management Agency (NADMA) to get RM174 million in 2023, RM400 million will be channelled in there are year-end floods.
• The National Scam Response Centre (NCRC) to start operating this month.
• Government to allocate RM50 million for Nationhood Films Production Fund (DEKAN); RM102 million for Digital Content Fund to drive the local creative industry.
• RM332 million allocation for sports development.
• RM16.5 billion for the transportation sector through main infrastructure projects, especially the Pan Borneo Highway, Gemas-Johor Bahru Double Track project, ECRL, RTS Link and Central Spine Road.
• One-off payment of RM500 for KAFA and takmir teachers, imam, muezzin and mosque assistants.
• RM2.55 billion for the welfare on rural people, with focus on Sabah and Sarawak.
• Sabah and Sarawak to receive RM6.3 billion and RM5.4 billion, respectively, for development.
• Under Phase 2 of the National Digital Network (JENDELA), the government to provide 100 per cent internet coverage in populated areas by 2025.
• JENDELA: RM700 million for digital connectivity involving 47 industrial zones and nearly 3,700 schools.
• Digital Nasional Berhad (DNB) to expand the 5G network nationwide to cover 70 per cent of highly-populated areas.

-- BERNAMA