Budget 2023 highlights

Prime Minister Datuk Seri Anwar Ibrahim – Bernama

KUALA LUMPUR: The following are the highlights of Budget 2023 presented by Prime Minister Datuk Seri Anwar Ibrahim who is also the Finance Minister in Parliament today.

• Budget 2023 is themed 'Developing Malaysia Madani' which involves an allocation of RM388.1 billion with RM289.1 billion for operating expenditure, RM99 billion for development expenditure including RM2 billion in contingency savings.
• The budget concentrates 12 main efforts based on three determinations which are inclusive and sustainable economic drive, institutional and governance reforms to restore confidence and social justice to moderate disparities.
• This is the first budget presented under the Anwar-led Unity Government. Budget 2023 was originally presented by the previous government in October last year but was not approved after Parliament was dissolved.
• Budget 2023 allocations revised upwards to RM386.14 billion from RM272.3 billion in October 2022
• Allocation of RM388.1 billion with RM289.1 billion for operating expenditure and RM99 billion for development expenditure
• The national debt will reach RM1.2 trillion or more than 60 per cent of GDP for 2023
• The government expects revenue collection in 2023 to amount to RM291.5 billion compared to RM294.4 billion last year
• The government projects that economic growth will be around 4.5 per cent
• The inflation rate this year is expected to be the same as in 2022, at 3.3 per cent
• The government is determined to achieve a sustainable level of fiscal deficit in the medium term with a target of 3.2 per cent to GDP by 2025
• The government takes a progressive approach in the context of targeted subsidies or taxation structures
• Electricity tariffs have been maintained for all domestic consumers and SMEs
• ASB dividend distribution that is more to the people in need
• The government proposes to introduce a luxury goods tax starting this year
• The government is proposing to impose an excise duty on liquid or gel products containing nicotine that are used for electronic cigarettes and vaping
• The government to study introducing Capital Gains Tax for the disposal of unlisted shares by companies from 2024
• The New Industrial Master Plan 2030 will be announced in the third quarter of 2023 to outline the direction of industrial development focused on high-quality activities and the recruitment of local talent
• The government prepares RM50 million to build new, upgrade 3,000 stalls and kiosks as facilities for small hawkers to do business in focal locations
• MSME tax rate on taxable income for the first 150,000 reduced from 17 per cent to 15 per cent
• The government continues to provide various loan and financing facilities for the benefit of MSME entrepreneurs with a total value of up to RM40 billion
• Extending tax incentives to manufacturing companies that move operations to Malaysia and a 15 percent tax rate to the C-Suite until 2024
• Starting in 2024, shariah savings assets will be fully segregated to provide competitive returns to 1.25 million members who have shariah accounts
• About RM10 bilion loan fund readied by BNM for SMEs
• SJPP prepared to guarantee RM20 bilion SME loans
• Government to prepare RM50 million matching grants to encourage automation in the farming sector through the use of robotics and artificial intelligence
• RM80 million provided to improve the sustainability of the palm oil industry and counter the Anti-Palm Oil Campaign
• RM100 million provided under the Digitisation Grant Scheme for SMEs and small vendors
• The government will strengthen the role of the Digital Economic Centre (PEDi) to help small traders with ICT and e-Commerce knowledge
• The cumulative investment value of Government Linked Companies is estimated to reach RM50 billion this year
• RM1 billion financing available under BNM to help MSMEs automate business processes, digitise operations
• GLC including Khazanah dan EPF can invest in innovative and high-growth local start-up companies to a value up to RM1.5 billion
• Stamp duty waiver for houses worth RM500,000 and below and 75 per cent stamp duty waiver for houses worth over RM500,000 up to RM1 million - Bernama