Malaysia Budget 2016 Summary

Posted by Kris | Friday, October 23, 2015 | | 0 comments »

As usual, every year there is goodies for government servants! And there is still BR1M!!!

* RM267.2bil has been allocated under Budget 2016, compared with the revised RM260.7bil in 2015.
* There will be nine high-impact domestic projects worth RM6.7bil in total.
* The first priority of Budget 2016 is to spur domestic investment to contribute 26.7% to the GDP in 2016.
* The Budget aims to increase private investment to RM218.6bil and public investment to RM112.2mil.
* The GST sum is to be credited into value of prepaid reloads from Jan 1 next year.

For the middle income people. Not alot of goodies but at least got something small. Was expecting income tax to drop due to GST..but that aint happening :(

They are:
  • Tax relief limit up from RM1,000 to RM2,000 for each child aged 12 and below;
  • Tax relief limit up from RM3,000 to RM4,000, for those with spouses who do not earn an income;
  • Tax relief of RM1,500 per parent, for those supporting elderly parents.
    The parents must be aged 60 and above and earning less than RM2,000. The individual need not be living with the parent. (Currently, those caring for sick parents enjoy tax exemption of up to RM5,000 spent on medical care);
  • Tax relief limit up from RM6,000 to RM8,000 for each child studying at a tertiary institution; and
  • Tax relief of up to RM6,000 for parents with disabled children. This is separate to the tax exemption for disabled children enrolled in institutions of higher education.

* Personal income tax pushed to 26% from 25% for those earning between RM600,000 to RM1mil. Income tax is also pushed up to 28pc from 25% for those earning RM1mil and above.

* RM900mil is proposed for the Jalan Tun Razak Traffic Dispersal Project to reduce congestion in the city.
* RM200mil will be allocated to improve roads in Felda settlements.
* RM1.2bil is allocated to improve Internet speeds, from 5mbps to 20mbps.

* RM1.4bil will be spent to improve 700km of road all around the country.
* RM67mil is allocated for bus operation routes outside the city.
* Tourism is expected to contribute RM103bil to the economy. E-Visa for seven countries (China, India, Myanmar, Nepal, Sri Lanka, United States and Canada) to be launched in mid-2016.
* RM5.3bil is allocated to modernise farming.
* RM28 billion is allocated for new MRT projects.
* From Jan 2016, RM100 will be given in schooling aid to students from households with a monthly income of RM3,000 and below.
* RM250 1Malaysia book vouchers will be available for 1.2mil students.
* RM930mil is allocated to the Youth and Sports Ministry, with RM145mil set aside for training athletes.
* BR1M to continue for 4.7 million households
* The Pan-Borneo Sarawak Highway, which is set to be completed in 2021, will be toll-free.
* RM100 million is to be provided by Communications & Multimedia Ministry for eRezeki, eUsahawan programmes which is expected to benefit some 100,000 people.
* The Budget aims for 30% women involvement at decision-making levels in both public and private sectors.
* RM360mil is proposed to improve National Service, with RM160mil allocated for non-governmental organisations.
* All domestic economy class flights will be exempted from GST for rural folk.
* RM1.6bil is allocated for the construction of 175,000 units of PR1MA homes. 100,000 are expected to be completed next year.
* TEKUN to provide RM600mil + RM500mil for Bumiputras and RM100mil for Indian entrepreneurs.
* RM90mil is allocated as micro-credit loans for small traders and Chinese entrepreneurs.
* RM300mil is proposed to improve the welfare and development of the Orang Asli community. RM45mil is also set aside to assist with extra food, pocket money and school transport fees for the Orang Asli community.
* The minimum starting salary in the civil service is set at RM1,200 a month from July 2016. The move is expected to benefit some 60,000 civil servants.
* From July 2016, the minimum pension rate is set at RM950 a month for pensioners with at least 25 years of service.