Highlights of Budget 2024

KUALA LUMPUR: These are the highlights of Budget 2024 tabled in Dewan Rakyat on Friday (Oct 13) by Prime Minister Datuk Seri Anwar Ibrahim.

Click here to view the full text of his speech

Themed "Reformasi Ekonomi, Memperkasakan Rakyat" (Economic Reform, Empowering People), Budget 2024 involves an allocation of RM393.8bil with RM303.8bil for operating expenditure and the remaining RM90bil for development expenditure, with RM2bil in contingency savings.

This is the second budget presented by Anwar, who is also Finance Minister, since the formation of the unity government in November 2022. Last February, Anwar presented a revised budget amounting to RM388.1bil.

– Unemployment rate stands at 3.4% as of August 2023

– Government proposes to increase Service Tax to 8% compared to 6% currently

– Proposed Service Tax hike excludes food, beverages and telecommunications

– Targeted subsidy to be implemented in stages starting 2024

– Savings from targeted subsidies to be used to increase Rahmah Cash Aid allocation from RM8bil to RM10bil

– Price controls for chicken and eggs to be lifted to allow local market to function freely in ensuring a guaranteed supply

– Targeted subsidies are not an excuse to hike prices arbitrarily and unreasonably

– RM2.4bil is allocated to build, maintain, repair quarters for civil servants, teachers, hospitals, police, armed forces, firefighters

– RM18mil allocation to undertake legislative reforms

– RM38mil is allocated for boosting the productivity of the judiciary

– RM150mil allocated to maintain, repair public toilets in 150 local authorities nationwide

– RM2.8bil is set aside for maintenance of federal roads, bridges

– Legal Aid Department will be strengthened to ensure equal access to justice for underprivileged citizens

– Electricity bill rebate up to RM40 per month for hardcore poor households to continue with an allocation of RM55mil

– Electricity bill deposit for personal account to be exempted

– Government to double the allocation for the National Scam Response Centre to RM20mil to enhance its function to combat scam-related crimes

– Bank Negara Malaysia in collaboration with the financial sector is developing a National Fraud Portal, expected to be ready by mid-2024

– Development allocation to Sabah and Sarawak to be increased, with Sabah getting RM6.6bil compared to RM6.5bil previously, while Sarawak getting RM5.8bil compared to RM5.6bil previously.

– Transfer of regulatory powers for Sabah's electricity supply to the state government to take effect on Jan 3, 2024.

– RM6.8bil is allocated for technical and vocational education and training (TVET) education next year

– 2026 has been set as Visit Malaysia Year, targeting the arrival of 26.1mil foreign tourists and an estimated domestic spending of RM97.6bil

– Government to set aside RM350mil to boost tourism promotion and activities in Malaysia

– Government to relax the conditions of Malaysia My Second Home (MM2H) application to increase the arrival of foreign tourists and investors to Malaysia

– RM2.4bil allocated to Felda, Felcra and Risda to boost agri-commodity activities, enhance socio-economic wellbeing of smallholders

– Prasarana to acquire 150 electric buses and build three bus depots at a cost of RM600mil

– Putrajaya will serve as Malaysia's low carbon city model

– Federal government plans to use electric vehicles (EVs) as official vehicles

– A total of 33 high-priority flood mitigation projects to be implemented next year with a cost of RM11.8bil

– RM300mil allocated to National Disaster Management Agency (NADMA) for flood preparedness

– RM2.6bil allocated in subsidies, incentives for padi farmers, fishermen

– Government to increase floor price of rice to RM1,300 per metric tonne to boost farmers' income

– RM400mil is set aside to implement Food Security Strengthening programmme

– RM50mil to be provided under the Agricultural Disaster Fund to compensate up to 50% of the value of losses due to disasters

– Fishermen to receive a monthly subsistence allowance of up to RM300 and a catch incentive of up to RM1,000

– Government to allocate RM58.1bil to fund various initiatives including subsidies, incentives and assistance, with almost 50% of the allocation for controlling prices of goods and services.

– Government allocates RM200mil to continue the implementation of Payung Rahmah initiatives

– Allocation for Rahmah Cash Aid (STR) raised to RM10bil from RM8bil in 2023, to benefit nine million recipients

– First STR payments for households increased to RM500 next year from RM300 previously, to be disbursed before Ramadan

– Maximum rate for STR raised to RM3,700 from RM3,100 previously, while minimum rate for youths increased to RM500 from RM350 previously

– Over RM2.4bil allocated to Social Welfare Department (JKM) to benefit more than 450,000 people including hardcore poor households, elderly, children, disabled

– Education Ministry gets the biggest allocation of RM58.7bil under Budget 2024 compared to RM55.2bil in 2023

– RM1.9bil is allocated for upgrading and maintaining schools nationwide next year

– Higher Education Ministry is allocated RM16.3bil, up from RM15.3bil in 2023

– Government agrees to provide discounts for PTPTN loan repayments starting from Oct 14, 2023 until March 31, 2024

– Health Ministry is allocated RM41.2bil next year, up from RM36.3bil in 2023

– Excise duty rate for sugary drinks will be raised from 40 sen to 50 sen per litre.

– MADANI Medical Scheme to be expanded nationwide with an allocation of RM100 mln, to benefit 700,000 people

– A total of RM1.1bil allocated to resolve water supply woes particularly in Kelantan, Sabah and Labuan.

– RM60mil to develop 5G Cyber Security Testing Framework and local expertise on 5G technology

– Sarawak Pan Borneo Highway to be completed in 2024.

– A total of RM2.47bil allocated for the implementation of people's housing projects in 2024

– RM19.7bil allocated for Defence Ministry, RM19bil for Home Ministry

– RM1.9bil allocated for the management and development of Islamic affairs

– Up to RM1,000 tax relief limit for the purchase of sports equipment and activities

– Civil servants in grades 56 and below including contract staff to receive RM2,000 incentive, to be paid end-Feb 2024

– Government pensioners including veterans to receive RM1,000, to be paid end-Feb 2024 – Bernama

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