Budget 2023: Highlights of RM372.3bil in allocations

KUALA LUMPUR: The following are the highlights of Budget 2023 tabled in the Dewan Rakyat on Friday (Oct 7) by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Themed "Keluarga Malaysia, Prospering Together", Budget 2023 involves an allocation of RM372.3bil 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) will be improved with an allocation of RM7.8bil, to benefit 8.7 million recipients.

A new category of households with monthly income of below RM2,500 with five or more children will receive RM2,500 under BKM.

Ewallet credit worth RM100 for the M40 group with an annual income of below RM100,000 has also been allocated under the ePemula M40 initiative.

Two percentage point cut on taxable income ranging from RM50,000 to RM100,000 for domiciled individuals.

Tax relief for 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 years old who are unemployed for more than three months will receive employment incentives under Socso.

Loan facilities amounting to RM305mil will be provided through SME Bank, Tekun, Mara, BSN and Agrobank, specifically for young entrepreneurs.

The government will bear the cost for B40 youth to obtain taxi, bus, and ehailing licences under the MyPSV programme.

The Pakej Remaja Keluarga Malaysia initiative will be extended until April 2023 to bridge the digital divide among youths.

Government to bear 80% of Socso contributions for self-employed individuals to reduce their burden.

The limit for Employees Provident Fund (EPF) Voluntary Contributions 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) and ASB2 investment limit raised from RM200,000 to RM300,000.

Government to allocate more than RM55bil for subsidies, aid and incentives to lower cost of living.

RM100mil 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 (OKU), Orang Asli, ex-convicts and women who return to work.

Socso to provide mobility assistance of RM500 for individuals who secure a job in other states, RM1,000 for long-distance moves from Sabah or Sarawak to the peninsula and 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 per pupil in Peninsula, RM4 in Sabah, Sarawak, and Labuan.

RM2.3bil allocation to provide conducive and safe learning space for school students, an increase from RM1.7bil 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% for 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 RM1bil allocation for the welfare of senior citizens, up from RM580mil in 2022.

RM1.2bil allocation for OKU, including through allowances for those who are unable to work and disabled workers.

RM10bil to provide travel vouchers to OKU through ehailing services.

Special incentive to set up 50 new childcare centres for OKU; Finance Ministry to carry out OKU-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 RM25mil to provide incentives in the form of discounts, vouchers and rebates to encourage domestic tourism.

RM420mil 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 products to encourage people to stop smoking.

An allocation of RM25mil to cover rising rare disease 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.

RM700mil 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 RM174mil in 2023, RM400mil will be channelled if there are year-end floods.

The National Scam Response Centre (NCRC) to begin operations this month.

Government to allocate RM50mil for Nationhood Film Production Fund (Dekan); RM102mil for Digital Content Fund to drive the local creative industry.

RM332mil allocation for sports development.

RM16.5bil for the transportation sector through main infrastructure projects, especially the Pan Borneo Highway, Gemas-Johor Baru 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.

RM2.55bil for the welfare of rural people, with focus on Sabah and Sarawak.

Sabah and Sarawak to receive RM6.3bil and RM5.4bil, respectively, for development.

Under Phase 2 of the National Digital Network (Jendela), the government to provide 100% internet coverage in populated areas by 2025.

RM700mil under Jendela 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% of highly-populated areas. - Bernama

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Budget 2023 , Finance Ministry , Highlights


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