Sabah & Sarawak Superblog

September 29, 2012

KUALA LUMPUR: Following are the highlights of the 2013 Budget tabled by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, at the Dewan Rakyat today.

The Budget 2013 themed “Prospering The Nation, Enhancing Well-Being of the Rakyat: A Promise Fulfilled”.

-Economic growth projected to expand 4.5 per cent to 5.5 per cent.

-Nominal GDP expected to surpass RM1 trillion.

-Federal Government’s revenue in 2013 is estimated to increase to RM208.6 billion.

-Pivate sector investment is to increase to RM148.4 billion.

-RM251.6 billion allocated for the implementation of development projects, programmes and measures, with focus on the well-being of the rakyat and national development.

-RM201.9 billion is for Operating Expenditure while RM49.7 billion for Development Expenditure.

-RM58.6 billion allocated for Emoluments dan RM33.7 billion for Supplies and Services.

-RM3 billion to implement Entry Point Projects

-RM1 billion for Domestic Investment Strategic Fund under Malaysian Investment Development Authority to leverage on outsourcing opportunities and intensify technology acquisition by Malaysia-owned companies

-RM1 billion SME Development Fund under SME Bank

-SME Bank and Islamic Development Bank (IDB) to provide RM200 million to Halal Industry Fund to finance working capital of participating SMEs

-RM16 million a year group insurance scheme for registered hawkers and small businesses for coverage of up to RM5,000

-Perbadanan Nasional Bhd to provide soft loans of up to RM25,000 for licensees and RM500,000 for licensors under Business In Transformation programme

-Investment Tax Allowance of 100 per cent for a period of 10 years for qualified companies involved in refinery activities on petroleum products

-Global Incentive for Trading (GIFT) programme is enhanced with 100 per cent income tax exemption on statutory income for first three years of operation

- Expenses for issuance of AgroSukuk given double deduction for a period of four years from year of assessment 2012 to 2015

-DanaInfra Nasional Bhd to issue retail bonds worth RM300 million by end-2012 to finance MERT development projects

-RM30 billion allocated to the economic sector for infrastructure, industrial, agriculture and rural development.

-RM11.1 billion allocated to the social sector including education and training, health welfare, housing and community development.

-RM4.6 billion allocated for the development of the Security Sector, RM2 billion General Administration and RM2 billion for Contigencies.

-The Government will continue to accelerate the implementation of the 12 National Key Economic Areas (NKEAs).

-RM3 billion allocated for the implementation of Entry Points Projects (EPPs), including RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy.

-Additional expenses incurred in issuance of retail bonds and retail sukuk to be given double deduction for a period of four years from year of assessment 2012 to 2015

-Individual investors given stamp duty exemption on instruments relating to transactions of retail bonds and retail sukuk

-Securities Commission to introduce Graduate Representative Programme in collaboration with private sector to train 1,000 graduates to meet needs of securities and derivatives industry

-Danajamin Nasional Bhd to get additional RM400 million for next two years, to multiply issuance value between RM4 billion and RM6 billion

-RM100 million to be provided to Capital Market Foundation through Capital Market Development Fund under the Securities Commission

-RM500 million allocated for the River of Life project for the beautification of the Klang River, RM300 million is provided for replacement of water pipelines and sewage to improve water supply and sewage system.

-The Government allocated RM358 million to intensify tourism industry in conjunction with Visit Malaysia Year 2013/2014.

-Income tax exemption be extended for three years for tour operators who bring in at least 750 foreign tourists or handle 1,500 local tourists a year.

-The Government continues to give priority to the agriculture sector to enhance the national income and ensure food security. For this, a sum of RM5.8 bilion is allocated to the Ministry of Agriculture and Agro-Based Industry.

-RM30 million allocated for agricultural development programmes, including high-technology applications in fruit and vegetable production, increase the supply of high-quality seedlings, price stabilisation through direct selling from farms, establishment of fish markets for the rakyat as well as improving agricultural training institutions.

-Income tax exemption for 10 years for Tun Razak Exchange-status companies, stamp duty exemption, industrial building allowance and accelerated capital allowance for TRX Marquee-stataus companies, and tax exemption for property developers.

-Malaysian Wakaf Foundation, under Department of Awqaf, Zakat and Hajj, to formulate Corporate Wakaf master plan, taking into consideration State Islamic Religious Council legislative structure

-RM9 billion or 43 per cent of total infrastructure cost of MRT project allocated to Bumiputera companies

-SME Bank to provide RM1 billion to Bumiputera Financing Fund to assist local SMEs to finance acquisition of subsidiaries of Government-Linked Companies engaged in non-core activities

-Working Capital Guarantee Scheme for SMEs to be extended until December 2013 and to High-Performing Bumiiputera (TERAS) companies, and companies’ shareholders fund eligibility is raised to RM20 million

-Allocation of RM75 million to increase the output of food and health products.

-For the plantation sector, RM432 million is allocated under the NKEA for oil palm replanting programmes.

-RM127 million is allocated for the development of high-value oleo derivatives to transform the downstream industry towards higher production of derivatives.

-Four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan. With an expanditure of RM140 million, the four new paddy granaries with acreage of 19,000 hectares and involving 12,237 farmers are expected to produce 104,000 tonnes.

-RM230 million to be provided as incentive for fish landing as well as payment for living allowances for the fishermen. Currently, the Government provides a living allowance of RM200 per month, an incentive ranging from 10 to 20 sen per kilogramme and the introduction of Fishermen Insurance Scheme.

-Bernama

(Source: The BOrneo Post)